) is set to report fourth quarter fiscal 2013 results on Mar 20.
Last quarter it posted a 2.3% negative surprise. Let's see how
things are shaping up for this announcement.
Growth Factors Past Quarter
Earnings remained within the guidance range in the third
quarter, but dropped from the year-ago quarter primarily due to
lower comparable store sales and higher merchandise expenses.
Weak business in Europe was also a dampener.
Moreover, management hinted that international losses could
increase due to higher costs related to incremental marketing
expenses. Macroeconomic headwinds are expected to adversely
affect comps even during the fourth quarter. Promotional expenses
in North America, currency headwinds and lower mix of royalties
are expected to restrict earnings in the future.
The Zacks Consensus Estimate for the fourth quarter stands at
86 cents while that for fiscal 2013 is pegged at $2.07.
Guess? missed estimates in the second and third quarters of
fiscal 2013, while it surpassed in the first quarter and fourth
quarter of 2012 with a trailing four-quarter average
positive surprise of 3.7%.
There has been no estimate revision in the last 60 days. As a
result, the Zacks Consensus Estimate has remained unchanged for
the fourth quarter as well as for 2013. Over the last 90 days,
however, the Zacks Consensus Estimate for the fourth quarter of
fiscal 2013 has fallen by a penny to 86 cents.
The lack of movement in estimates indicates a lack of
catalysts during the quarter, meaning that the company is likely
to report in line with expectations.
Moreover, the stock carries a Zacks Rank #2 (Buy).
We caution against stocks with Zacks Ranks #4 and #5 (Sell
rated stocks) going into the earnings announcement, especially
when the company is seeing a negative estimate revision
Other Stocks to Consider
Our model states that a stock needs to have both a positive
earnings ESP (Read:
Zacks Earnings ESP
: A Better Method) and a Zacks Rank of #1, #2 or #3 to beat
earnings estimates. You could, therefore, consider stocks
), with Zacks Earnings ESP of 3.03% and Zacks Rank #2 (Buy), and
) with Zacks Earnings ESP of 1.75% and Zacks Rank #3 (Hold).
GUESS INC (GES): Free Stock Analysis Report
GENL MILLS (GIS): Free Stock Analysis Report
HANESBRANDS INC (HBI): Free Stock Analysis
To read this article on Zacks.com click here.