Ralph Lauren Corporation
) is slated to release its first-quarter fiscal 2015 results on Aug
6, 2014. In the previous quarter, this premium lifestyle
merchandise retailer reported a positive earnings surprise of
2.44%. Let's see how things are shaping up for this
Factors Affecting This Quarter
Though the company's fourth-quarter fiscal 2014 results were
strong, it projects a slowdown in sales growth and a decline in
margins in the first quarter as well as for fiscal 2015. The
company highlighted that the weak forward outlook was mainly due to
increased investments toward enhancement of its global retail
operations and infrastructure as well as higher capital allotments
to augment advertising and marketing.
For the first quarter the company expects net revenue to
increase 3%-5%, much lower than the growth of 13.6% registered in
the fourth quarter fiscal 2014. Operating margin is anticipated to
contract in the range of 300-350 bps from the year-ago level.
Our proven model does not conclusively show that Ralph Lauren 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 of #1, 2 or 3 for
this to happen. This is not the case here as you will see
: Ralph Lauren currently has an Earnings ESP of 0.00%. This is
because the Most Accurate estimate stands at $1.75 a share, which
is in line with the Zacks Consensus Estimate.
Zacks Rank #2 (Buy)
: Ralph Lauren's Zacks Rank #2 when combined with a Zero ESP makes
surprise prediction difficult. We caution against stocks with a
Zacks Rank #4 and 5 (Sell-rated stocks) going into the earnings
announcement, especially when the company is seeing negative
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 this quarter:
The Andersons Inc. (
) has an Earnings ESP of +6.09% and a Zacks Rank #1 (Strong
Ameren Corp. (
) has an Earnings ESP of +14.04% and a Zacks Rank #2.
Macy's Inc. (
) has an Earnings ESP of +1.16% and a Zacks Rank #3 (Hold).
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RALPH LAUREN CP (RL): Free Stock Analysis
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ANDERSONS INC (ANDE): Free Stock Analysis
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