) is set to report third-quarter fiscal 2014 results on Dec 4.
Last quarter, it posted a positive surprise of 44.4%. Let us see
how things are shaping up for this announcement.
Factors to be Considered this Quarter
Guess? Inc. has reported soft revenue results for the past few
quarters due to decline in comps in the North American retail
stores. Tough retail conditions resulting in lower consumer
traffic in the retail stores are responsible for the lackluster
comps in the stores. Moreover, lower consumer spending in China
and ongoing macroeconomic challenges in Southern Europe are
hurting international sales of GES. We do not expect the top line
conditions to improve much in the third quarter. However,
management is expected to keep its profits afloat with tight cost
control and expense management.
Our proven model does not conclusively show that Guess? is
likely to beat earnings this quarter. A stock needs to have both
and a Zacks Rank #1, 2 or 3 to surpass earnings estimates.
However, that is not the case here due to the following
ESP for Guess? is 0.00%.
Guess? Zacks Rank #3 (Hold) when combined with a 0.00% ESP makes
surprise prediction difficult.
We caution against stocks with Zacks Ranks #4 and 5
(Sell-rated stocks) going into the earnings announcement,
especially when the company is seeing negative estimate revisions
Other Stocks to Consider
Here are some other companies you may want to consider as our
model shows that they have the right combination of elements to
post an earnings beat this quarter:
), with Earnings ESP of +1.11% and a Zacks Rank #1 (Strong
Michael Kors Holdings Limited
), with Earnings ESP of +1.16% and a Zacks Rank #2 (Buy).
The J. M. Smucker Company
), with Earnings ESP of +1.83% and a Zacks Rank #3 (Hold).
GUESS INC (GES): Free Stock Analysis Report
HANESBRANDS INC (HBI): Free Stock Analysis
MICHAEL KORS (KORS): Free Stock Analysis
SMUCKER JM (SJM): Free Stock Analysis Report
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