One of the world's leading specialty retailers of premium,
high-quality casual apparel for men and women,
Abercrombie & Fitch Company
) is likely to beat the expectations while reporting its fiscal
2012 fourth-quarter results on Feb 22.
Why a Likely Positive Surprise?
Our proven model shows that Abercrombie 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 #1.
Abercrombie currently has an Earnings ESP of +1.04%. This is
because the Most Accurate Estimate stands at $1.95, while the
Zacks Consensus Estimate is pegged at $1.93.
Zacks #1 Rank (Strong Buy):
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 Abercrombie's Zacks Rank #1 (Strong Buy)
and Earnings ESP of +1.04% make us confident regarding a positive
earnings beat by the company on Feb 22.
What is Driving the Better-than-Expected Earnings?
We believe that management's sustained focus on expanding
global operations and improving cash flows, while maintaining a
healthy balance sheet, bode well for future growth. This premium
casual apparel retailer boasts a strong portfolio of well
established brands, each of which is focused on the unique
characteristics and rapidly changing preferences of its target
customers. Moreover, with its unique and sexually-explicit
advertising strategy, the company's apparels are a major
attraction for its target customers.
The company has met as well as surpassed the Zacks Consensus
Estimate in trailing 4 quarters with an average surprise of
Other Stocks to Consider
Abercrombie is not the only firm we are looking up to this
earnings season. The following companies are also likely to beat
the earnings in the to-be-reported quarter:
New York & Company Inc.
) with Earnings ESP of +12.50% and a Zacks Rank #2 (Buy).
Big 5 Sporting Goods Corporation
) with Earnings ESP of +5.56% and a Zacks Rank #2 (Buy).
) has Earnings ESP of +7.14% and carries a Zacks Rank #2
ABERCROMBIE (ANF): Free Stock Analysis Report
BIG 5 SPORTING (BGFV): Free Stock Analysis
NEW YORK & CO (NWY): Free Stock Analysis
OFFICEMAX INC (OMX): Free Stock Analysis
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