Will Deckers Beat Estimate this Earnings? - Analyst Blog


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We expect Deckers Outdoor Corporation ( DECK ), the designer and marketer of niche footwear and accessories, to beat expectations when it reports first-quarter fiscal 2013 results on Apr 25, 2013.

Why a Likely Positive Surprise?

Our proven model shows that Deckers is likely to beat earnings because it has the right combination of two key components.

Positive Zacks ESP: Deckers currently has an Earnings ESP (Read: Zacks Earnings ESP: A Better Method ) of +50.00%. This is because the Most Accurate Estimate stands at -5 cents, while the Zacks Consensus Estimate is pegged at -10 cents.

Zacks Rank #3 (Hold): Note that stocks with a Zacks Ranks of #1, #2 and #3 have a significantly higher chance of beating earnings estimates. The sell-rated stocks (Zacks Rank #4 and #5) should never be considered going into an earnings announcement.

The combination of Deckers' Zacks Rank #3 (Hold) and +50.00% ESP makes us very confident regarding a positive earnings beat on Apr 25th.

What is Driving the Better than Expected Earnings?

Deckers is trying every means to reposition itself to keep afloat in a difficult consumer environment, by focusing on new product introductions, store augmentation and new store openings along with geographic expansion. The positive trend is seen in the trailing four-quarter average surprise of 3.3%.

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:

Hertz Global Holdings, Inc. ( HTZ ), Earnings ESP of +5.56% and a Zacks Rank #1 (Strong Buy).

Kraft Foods Group, Inc. ( KRFT ), Earnings ESP of +3.13% and a Zacks Rank #2 (Buy).

Amazon.com Inc. ( AMZN ), Earnings ESP of +100.00% and a Zacks Rank #3 (Hold).

AMAZON.COM INC (AMZN): Free Stock Analysis Report

DECKERS OUTDOOR (DECK): Free Stock Analysis Report

HERTZ GLBL HLDG (HTZ): Free Stock Analysis Report

KRAFT FOODS GRP (KRFT): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Business , Earnings , Stocks
More Headlines for: AMZN , DECK , HTZ , KRFT

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