World's leading apparel retailer,
V. F. Corporation
) is likely to beat expectations when it reports its
first-quarter fiscal 2013 results on Apr 26.
Why a Likely Positive Surprise?
Our proven model shows that V. F. Corp. may beat the earnings
because it has the right combination of two key components -
Positive Earnings ESP (Read:
Zacks Earnings ESP: A Better Method
) and a Zacks Rank #3.
V. F. Corp. currently has an Earnings ESP of +0.92%. This is
because the Most Accurate Estimate stands at $2.19, while the
Zacks Consensus Estimate is pegged at $2.17.
Zacks Rank #3 (Hold):
Note that stocks with Zacks Rank #1, #2 and #3 have significantly
higher chances of beating the earnings. The sell rated stocks (#4
and #5) should never be considered going into an earnings
The combination of V. F. Corp's Zacks Rank #3 (Hold) and an
Earnings ESP of +0.92% makes us confident regarding a positive
earnings beat by the company on Apr 26.
What is Driving the Better-than-Expected
We believe that the company's aggressive approach toward the
expansion of its international business, particularly in the Asia
Pacific, bodes well for future growth. Moreover, V.F Corp.'s
policy to acquire businesses that provide strategic opportunities
and exit businesses having lower potential has helped it drive
growth and improve profitability.
The company has surpassed the Zacks Consensus Estimate in the
trailing four quarters with an average surprise of approximately
Other Stocks to Consider
V. F. Corp. is not the only firm looking up this earnings season.
The following companies - V. F. Corp's industry peers - are also
likely to beat the earnings in the to-be-reported quarter:
) has an Earnings ESP of +1.70% and carries a Zacks Rank #1
Under Armour Inc.
) with an Earnings ESP of +33.33% and a Zacks Rank #2 (Buy).
Michael Kors Holdings Limited
) with an Earnings ESP of +2.70% and a Zacks Rank #3 (Hold).
CABELAS INC (CAB): Free Stock Analysis Report
MICHAEL KORS (KORS): Free Stock Analysis
UNDER ARMOUR-A (UA): Free Stock Analysis
V F CORP (VFC): Free Stock Analysis Report
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