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

To read this article on Zacks.com click here.

Zacks Investment Research

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
Referenced Stocks: AMZN , DECK , HTZ , KRFT


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