), the designer and marketer of fine accessories and gifts for
women and men, is slated to report its third-quarter fiscal 2014
results on Apr 29, 2014. In the last quarter, it posted a
negative surprise of 4.5%. Let's see how things are shaping up
for this announcement.
Factors this Past Quarter
Coach disappointed on the sales front that fell 6% due to
sluggishness in the North American market and also fell short of
the Zacks Consensus Estimate. The bottom line also failed to
impress, as earnings of $1.06 per share missed Zacks' expectation
of $1.11 and tumbled 13.8% from the prior-year quarter. A mature
domestic market and difficult consumer spending environment
remain causes of concern.
Our proven model does not conclusively show that Coach is
likely to beat earnings estimates this quarter. This is because a
stock needs to have both a positive
and a Zacks Rank #1, #2 or #3 for this to happen. This is not the
case here, as you will see below.
Negative Zacks ESP:
ESP for Coach is -1.59%. This is because the Most Accurate
estimate stands at 62 cents, while the Zacks Consensus Estimate
is pegged at 63 cents.
Zacks Rank #4 (Sell):
Coach's Zacks Rank #4 when combined with a negative ESP makes
surprise prediction difficult. We caution against stocks with a
Zacks Ranks #4 and #5 (Sell rated stocks) going into the earnings
announcement, especially when the company is seeing negative
estimate revisions momentum.
Stocks that Warrant a Look
Here are some other companies you may want to consider as our
model shows they have the right combination of elements:
) has an Earnings ESP of +2.70% and a Zacks Rank #1 (Strong
Wynn Resorts Ltd.
) has an Earnings ESP of +1.90% and a Zacks Rank #2 (Buy).
) has an Earnings ESP of +1.14% and a Zacks Rank #3 (Hold).
COACH INC (COH): Free Stock Analysis Report
TIME WARNER INC (TWX): Free Stock Analysis
UNIT CORP (UNT): Free Stock Analysis Report
WYNN RESRTS LTD (WYNN): Free Stock Analysis
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