Big 5 Sporting Goods Corp.
) is set to report third-quarter 2013 results on Oct 29. Last
quarter, it posted a 3.7% positive surprise. Let us see how
things are shaping up for this announcement.
Growth Factors in the Past Quarter
Benefits from the shift in Easter timings and the company's
impressive merchandise improvement strategy facilitated mid
single-digit top-line growth in the last quarter. Moreover,
same-store sales rose 4.4% over the year-ago quarter on the back
of increased customer traffic and higher average sale.
Furthermore, we remain impressed with the company's sustained
focus on improvising merchandise margins and effective cost
management, which helped it post strong bottom-line results for
the sixth straight quarter.
Our proven model does not conclusively project Big 5 Sporting
to beat earnings this quarter. A stock needs to have both
and a Zacks Rank #1, 2 or 3 to surpass earnings estimates.
However, that is not the case here due to the following
ESP for Big 5 Sporting is 0.00% since the Most Accurate Estimate
stands at 44 cents per share, which is in line with the Zacks
Big 5 Sporting's Zacks Rank #3 (Hold) increases the predictive
power of ESP. However, we also need to have a positive ESP to be
confident of an earnings surprise call. We caution against stocks
with Zacks Rank #4 and 5 (Sell-rated stocks) going into earnings
announcement, especially when the company is undergoing negative
Other Stocks to Consider
Big 5 Sporting is not the only firm we are looking up to this
earnings season. Our model shows that the following stocks have
the right combination of elements to post an earnings beat:
) has an Earnings ESP of +7.02% and a Zacks Rank #1 (Strong
Five Below, Inc
) has an Earnings ESP of +50.00% and a Zacks Rank #2 (Buy).
Avon Products Inc.
) has an Earnings ESP of +5.26% and a Zacks Rank #3 (Hold).
AVON PRODS INC (AVP): Free Stock Analysis
BIG 5 SPORTING (BGFV): Free Stock Analysis
FIVE BELOW INC (FIVE): Free Stock Analysis
HANESBRANDS INC (HBI): Free Stock Analysis
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