Wolverine World Wide Inc
), one of the leading designers, manufacturers and marketers of
branded footwear and apparel, is scheduled to report its
third-quarter 2012 financial results on Tuesday, October 16,
The current Zacks Consensus Estimate for the quarter stands at
72 cents per share, indicating an estimated decline of 11.9% from
the prior-year quarter. Revenue, as per the Zacks Consensus
Estimate is $363 million.
Second-Quarter 2012, a Synopsis
Soft sales and decline in profitability took a toll on the
company's second-quarter 2012 earnings as Wolverine reported
adjusted quarterly earnings of 41 cents a share, down 14.6% from
the prior-year quarters' earnings of 48 cents and missed the Zacks
Consensus Estimate of 44 cents. Including one-time items, earnings
came in at 42 cents a share, down 12.5% from the year-ago
Wolverine marked an increase of 0.8% in its top line to $312.7
million, which also came below the Zacks Consensus Estimate of $314
Agreement of Estimate Revisions
For the to-be-reported quarter, 2 out of 8 estimates have been
revised downward over the past 7 days, while none were raised
during the period. Moreover, for 2012, 3 out of 9 estimates were
revised downward, with none moving in the opposite
The analysts believe that the challenging macroeconomic outlook,
especially in Europe, continues to deter the results of the
company. Moreover, sales are expected to remain soft on account of
declines in the company's core businesses.
Further, analysts believe that the company's aggressive pricing
and low demand for new categories are expected to affect its
Magnitude of Estimate Revisions
Given the downward estimate revisions, the Zacks Consensus
Estimate for the third quarter slipped 2 cents to 72 cents a share
in the last 7 days, while, 2012 estimates decreased 11 cents to
With respect to earnings surprises, Wolverine surpassed the
Zacks Consensus Estimate in two of the last four quarters, met in
one and lagged in one. Earnings surprise range from a negative 6.8%
to a positive 18.5%. The average remained at a positive 5.4%,
indicating that the company has outperformed the Zacks Consensus
Estimate by the same magnitude over the trailing four quarters.
Given the current macroeconomic environment and intense
Deckers Outdoor Corporation
Skechers USA Inc.
), we prefer to have a long-term "Underperform" recommendation on
the stock. However, Wolverine holds a Zacks #3 Rank that translates
into a short-term "Hold" rating.
DECKERS OUTDOOR (DECK): Free Stock Analysis
SKECHERS USA-A (SKX): Free Stock Analysis
(TBL): ETF Research Reports
WOLVERINE WORLD (WWW): Free Stock Analysis
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