Foot Locker, Inc.
), athletic apparel and footwear retailer, is slated to report its
second-quarter 2014 earnings on Aug 22, 2014, before the opening
bell. In the previous quarter, the company delivered a positive
earnings surprise of 4.72%. Let's see how things are shaping up for
Factors Influencing this Quarter
Foot Locker's stellar first-quarter performance was a result of the
effective implementation of the operational and financial plans.
The improved top line consequently pulled up the bottom line,
leading to better-than-expected results. Management believes that
by continuing to exploit opportunities like children's business,
shop-in-shop expansion in collaboration with its vendors,
development of banner.com and enhancement of assortments, the
company is likely to benefit in the future.
Our proven model does not conclusively show that Foot Locker is
likely to beat earnings this quarter. This is because a stock needs
to have both a positive
(Expected Surprise Prediction) and a Zacks Rank #1, #2 or #3 for
this to happen. This is not the case here as you will see below.
Zero Zacks ESP
: The Earnings ESP, which represents the difference between the
Most Accurate estimate and the Zacks Consensus Estimate, is
currently pegged at 0.00%. This is because the Most Accurate
estimate and the Zacks Consensus Estimate, both stand at 54 cents.
: Foot Locker carries a Zacks Rank #3 (Hold). Though Zacks Rank #1,
2 or 3 increases the predictive power of ESP, the company's ESP of
0.00% makes surprise prediction difficult.
We caution against stocks with Zacks Rank #4 and #5 (Sell-rated
stocks) going into the earnings announcement, especially when the
company is seeing negative estimate revisions.
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
Abercrombie & Fitch Co. (
), Earnings ESP of +20.00% and a Zacks Rank #2 (Buy).
Dollar Tree, Inc. (
), Earnings ESP of +7.69% and a Zacks Rank #3.
Costco Wholesale Corporation (
), Earnings ESP of +1.33% and a Zacks Rank #3.
Want the latest recommendations from Zacks Investment Research?
Today, you can download 7 Best Stocks for the Next 30 Days.
Click to get this free report
DOLLAR TREE INC (DLTR): Free Stock Analysis
ABERCROMBIE (ANF): Free Stock Analysis Report
COSTCO WHOLE CP (COST): Free Stock Analysis
FOOT LOCKER INC (FL): Free Stock Analysis
To read this article on Zacks.com click here.