Wedbush Morgan downgraded Vans (VANS) to hold from buy.
Analyst Michael Pachter says third quarter results were in line with estimates, but says management provided fourth quarter guidance that was significantly below his $0.06 earnings per share estimate and the consensus $0.01 EPS estimate. Pachter says fourth quarter guidance was based on a precipitous drop in third quarter wholesale revenue, with expected orders of women's footwear off as much as 80%. He notes management also guided the fiscal 2003 (May) EPS range below his $1.00 estimate. In light of the new guidance, Pachter now sees $0.60 fiscal 202 EPS, and $0.75 fiscal 2003 EPS. He says he continues to like the company, and expects Vans to to get its women's business back on track by the end of fiscal 2003.