Citi Trends Inc.
) is set to report fourth-quarter and fiscal 2013 results on Mar
14, 2014. Last quarter, it posted an earnings surprise of 5.56%.
Let us see how things are shaping up for this announcement.
Growth Factors in the Past Quarter
Citi Trends narrowed losses for the third quarter compared to the
prior year benefiting from its strategic initiatives such as
better utilization of floor area, improvising merchandise margins
and efficient inventory management. While the company's top line
declined, comps for the quarter increased marginally driven by a
rise in the number of customer transactions and the average
number of items per transaction offset by a decline in average
Our proven model does not conclusively project Zumiez to likely
beat earnings this quarter. A stock needs to have both a positive
and a Zacks Rank #1, 2 or 3 to surpass earnings estimates.
However, that is not the case here due to the following factors:
ESP for Citi Trends is 0.00% since the Most Accurate estimate
stands at 10 cents per share, which is in line with the Zacks
Citi Trends' Zacks Rank #3 (Hold) increases the predictive power
of ESP. However, we 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 the earnings
announcement, especially when the company is undergoing negative
Other Stocks to Consider
Citi Trends is not the only firm we are looking up to this
earnings season. Our model shows that the following stocks have
the right combination to post an earnings beat:
Emerge Energy Services LP
) with Earnings ESP of +8.96% and a Zacks Rank #1 (Strong Buy).
Matador Resources Company
) with Earnings ESP of +7.14% and a Zacks Rank #3 (Hold).
Tiffany & Co.
) with Earnings ESP of +0.66% and a Zacks Rank #3 (Hold).
CITI TRENDS INC (CTRN): Free Stock Analysis
EMERGE ENRG SVC (EMES): Free Stock Analysis
MATADOR RESOURC (MTDR): Free Stock Analysis
TIFFANY & CO (TIF): Free Stock Analysis
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