) is set to report third-quarter fiscal 2013 results on Nov 22.
Last quarter, it posted a 70.0% positive surprise. Let us see how
things are shaping up for this announcement.
Factors to be Considered this Quarter
Kirkland's has been witnessing strong traffic in its stores
for the past few months, which is expected to boost comps in the
third quarter. Kirkland's expects earnings per share between 80
cents and 90 cents, up from the previous guidance range of 75
cents-85 cents. Kirkland's raised its guidance outlook following
decent conversion and customer traffic, Kirkland's expects
fiscal 2013 total sales to increase approximately 3% to 4%
compared with fiscal 2012, instead of 3% to 5% as expected
We are encouraged by the optimistic outlook and strong comps
of the home furnishing retailer. Moreover, with a flourishing
housing sector, demand for home furnishings is growing and it is
expected to boost sales during the quarter. Kirkland's is also
expected to improve its margins during the third quarter as it
has started to close down its smaller under-performing stores in
the malls and is opening bigger off-mall stores at popular
Our proven model does not conclusively show that KIRK is
likely to beat earnings this quarter. A stock needs to have both
and a Zacks Rank of #1, 2 or 3 for this to happen. However, that
is not the case here due to the following factors:
ESP for KIRK is 0.00%
Kirkland's Earnings ESP of 0.00% combined with Zacks Rank #1
(Strong Buy) makes surprise prediction difficult. So we are not
confident about an earnings beat.
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:
Best Buy Co., Inc.
), with Earnings ESP of +9.09% and a Zacks Rank #1 (Strong
), with Earnings ESP of +16.67% and a Zacks Rank #2 (Buy).
Trina Solar Limited
), with Earnings ESP of +77.78% and a Zacks Rank #2 (Buy).
BEST BUY (BBY): Free Stock Analysis Report
KIRKLANDS INC (KIRK): Free Stock Analysis
TIVO INC (TIVO): Free Stock Analysis Report
TRINA SOLAR LTD (TSL): Free Stock Analysis
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