Wolverine World Wide Inc.
) is slated to report its first-quarter 2013 results before the
market opens on Apr 16. In the last quarter, it posted a positive
surprise of 200%. Let's see how things are shaping up for this
Growth Factors this Past Quarter
Strong performance of the legacy WWW and Performance +
Lifestyle Group (PLG) businesses facilitated Wolverine to post
robust fourth-quarter 2012 earnings results. The company's strong
brand portfolio and continued product innovation augurs well for
its future operating performance. We also remain optimistic about
its ability to augment its key potential businesses, including
Merrell, Wolverine/Caterpillar boots and its direct-to-consumer
Our proven model does not conclusively show that Wolverine is
likely to beat earnings this quarter. This is because a stock
needs to have both a positive Earnings ESP (Read:
Zacks Earnings ESP: A Better Method
) and a Zacks Rank #1, #2 or #3 for this to happen. This is not
the case here as you will see below.
ESP for Wolverine is -1.85%. This is because the Most Accurate
Estimate stands at 53 cents, while the Zacks Consensus Estimate
is pegged at 54 cents.
Zacks Rank #3 (Hold):
Wolverine's Zacks Rank #3 (Hold) lowers the predictive power of
ESP because the Zacks Rank #3 when combined with a negative ESP
makes surprise prediction difficult. We caution against stocks
with Zacks Ranks #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:
), Earnings ESP of +3.85% and a Zacks Rank #1 (Strong Buy).
Kraft Foods Group, Inc.
), Earnings ESP of +3.13% and a Zacks Rank #2 (Buy).
), Earnings ESP of +190.00% and a Zacks Rank #3 (Hold).
AMAZON.COM INC (AMZN): Free Stock Analysis
CONNS INC (CONN): Free Stock Analysis Report
KRAFT FOODS GRP (KRFT): Free Stock Analysis
WOLVERINE WORLD (WWW): Free Stock Analysis
To read this article on Zacks.com click here.