Deckers Outdoor Corp.
) - designer, producer, and brand manager of innovative, niche
footwear and accessories - to beat expectations when it reports
third-quarter 2013 results on Oct 24, 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
Positive Zacks ESP:
Deckers currently has an
of +4.17%. This is because the Most Accurate estimate stands at
75 cents, while the Zacks Consensus Estimate is pegged at 72
Zacks Rank #1 (Strong Buy):
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 #1 (Strong Buy) and
+4.17% ESP makes us very confident regarding a positive earnings
beat on Oct 24.
What is Driving the Better-than-Expected
Deckers is trying every means to reposition itself to keep
afloat in a difficult consumer environment. Such measures include
focusing on new product introductions, effective cost management
and new store openings. The company is also expanding its
footprint by targeting profitable markets. Management is eyeing
opportunities for store expansion in Asia, mainly Japan and
China, and seeks to enhance the company's presence in South
Korea, Taiwan, Mongolia, Singapore and Australia. In the last
four quarters, Deckers has outperformed the Zacks Consensus
Estimate by an average of 44.1%.
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 to post
an earnings beat:
), Earnings ESP of +7.02% and a Zacks Rank #1 (Strong Buy).
), Earnings ESP of +2.59% and a Zacks Rank #2 (Buy).
), Earnings ESP of +3.03% and a Zacks Rank #3 (Hold).
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