Will Deckers (DECK) Beat Earnings Estimates This Quarter? - 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 second-quarter fiscal 2013 results on Jul 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 +6.60%. This is because the Most Accurate Estimate stands at -99 cents, while the Zacks Consensus Estimate is pegged at -$1.06.       

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 +6.60% ESP makes us very confident regarding a positive earnings beat on Jul 25.

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 41.6%.

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:

The Gap, Inc . ( GPS ) has an Earnings ESP of +1.70% and a Zacks Rank #2 (Buy).

Five Below, Inc . ( FIVE ) has an Earnings ESP of +11.11% and a Zacks Rank #2 (Buy).  

Under Armour, Inc. ( UA ) has an Earnings ESP of +7.69% and a Zacks Rank #3 (Hold).



DECKERS OUTDOOR (DECK): Free Stock Analysis Report

FIVE BELOW INC (FIVE): Free Stock Analysis Report

GAP INC (GPS): Free Stock Analysis Report

UNDER ARMOUR-A (UA): 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 The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Earnings , Stocks

Referenced Stocks: DECK , FIVE , GPS , UA

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