) is set to report third-quarter fiscal 2013 results on Dec 5.
Last quarter, it posted a 17.7% positive surprise. Let us see how
things are shaping up for this announcement.
Growth Factors in the Past Quarter
Solid top-line growth, inflated margins and higher comparable
store sales (comps) led to the earnings beat in the past quarter.
Comps in the quarter benefited from improvement in the juniors,
hard goods, and footwear categories, offset by decline in the
men's, accessories, and boy's categories. Furthermore, we remain
impressed by the company's initiatives such as store opening
programs and the recent acquisition of Blue Tomato, which
provided it with a solid platform to capitalize on emerging
Our proven model does not conclusively project Zumiez to likely
beat earnings this quarter. A stock needs to have both positive
and a Zacks Rank #1, 2 or 3 to surpass earnings estimates.
However, that is not the case here due to the following factors:
ESP for Zumiez is 0.00% since the Most Accurate estimate stands
at 46 cents per share, which is in line with the Zacks Consensus
Zacks #3 Rank (Hold):
Zumiez's Zacks Rank #3 increases the predictive power of ESP.
However, we also need to have a positive ESP to be confident of
an earnings surprise call. We caution against stocks with Zacks
Rank #4 and #5 (Sell-rated stocks) going into the earnings
announcement, especially when the company is undergoing negative
Other Stocks to Consider
Zumiez is not the only firm we are looking up to this earnings
season. Our model shows that the following stocks have the right
combination to post an earnings beat:
Omega Protein Corp.
) with Earnings ESP of +16.00% and a Zacks Rank #1 (Strong Buy)
Five Below Inc.
) with Earnings ESP of +25.00% and a Zacks Rank #2 (Buy)
Rite Aid Corp.
) with Earnings ESP of +25.00% and a Zacks Rank #3 (Hold)
FIVE BELOW INC (FIVE): Free Stock Analysis
OMEGA PROTEIN (OME): Free Stock Analysis
RITE AID CORP (RAD): Free Stock Analysis
ZUMIEZ INC (ZUMZ): Free Stock Analysis Report
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