Is Genesco (GCO) Likely to Miss Earnings? - Analyst Blog

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Genesco Inc. ( GCO ), a retailer and wholesaler of branded footwear, apparel, and accessories, is slated to post fourth-quarter fiscal 2013 results on Mar 13, 2014. In the previous quarter, the company delivered a positive earnings surprise of 4.4%. Let's see how things are shaping up for this announcement.

Factors this Past Quarter

In the previous quarter, Genesco's earnings beat estimates. Sales improved marginally year over year and were above the Zacks Consensus Estimate. Top-line results during the quarter were impacted by a 1% decline in comparable-store sales (comps).

Earnings Whispers?

Our proven model does not conclusively show that Genesco is likely to beat earnings this quarter. This is because a stock needs to have both a positive Earnings ESP (Expected Surprise Prediction) and a Zacks Rank of #1, 2 or 3 for this to happen. This is not the case here as you will see below.

Negative Zacks ESP : Genesco currently has an Earnings ESP of -0.46%. This is because the Most Accurate estimate stands at $2.17, while the Zacks Consensus Estimate is pegged at $2.18 per share.

Zacks Rank : Genesco's Zacks Rank #4 (Sell) when combined with negative ESP of 0.46% makes surprise prediction difficult. We caution against stocks with a Zacks Rank #4 and 5 (Sell rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions momentum.

Other Stocks to Consider

Here are some other companies you may want to consider as our model shows they have the right combination of elements to post an earnings beat this quarter:  

TD Ameritrade Holding Corporation ( AMTD ), Earnings ESP of +6.25% and a Zacks Rank #1 (Strong Buy).

CommScope Holding Company, Inc. ( COMM ), Earnings ESP of +5.71% and a Zacks Rank #1 (Strong Buy).

First Merchants Corporation ( FRME ), Earnings ESP of +2.56% and a Zacks Rank #1 (Strong Buy).



TD AMERITRADE (AMTD): Free Stock Analysis Report

COMMSCOPE HLDG (COMM): Free Stock Analysis Report

FIRST MERCHANTS (FRME): Free Stock Analysis Report

GENESCO INC (GCO): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Earnings , Stocks

Referenced Stocks: AMTD , COMM , FRME , GCO

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