), one of the leading pet food and related services superstore, is
slated to report its first-quarter 2014 earnings before the opening
bell on May 21, 2014,. In the previous quarter, PetSmart recorded a
positive earnings surprise of nearly 5.8%. Let's see how things are
shaping up for this announcement.
Factors Influencing this Quarter
The company's innovative and differentiated products, along with
its sustained efforts to expand brand portfolio and assortments are
the driving factors in the upcoming quarter. However, PetSmart
faces competition from giants like
Wal-Mart Stores Inc.
), which have lately penetrated the pet supply market. Hence, the
company is focusing on online competition and enhancing customer
relations in order to boost sales. For the first quarter, it
envisions earnings before tax (EBT) to grow in the low to
mid-single digit range.
Our proven model does not conclusively show that PetSmart is likely
to beat earnings this quarter. That 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
: PetSmart currently has an Earnings ESP of 0.00%. This is because
both the Most Accurate estimate and the Zacks Consensus Estimate
stand at $1.02.
: PetSmart's Zacks Rank #4 (Sell) lowers the predictive power of
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 momentum.
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
The Kroger Co.
), Earnings ESP of +0.95% and a Zacks Rank #2 (Buy).
Foot Locker, Inc.
), Earnings ESP of +0.95% and a Zacks Rank #2.
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