Sally Beauty Holdings Inc.
), international specialty retailer and distributor of professional
beauty supplies, is slated to report its third-quarter fiscal 2014
earnings on Jul 31, before the opening bell. In the previous
quarter, Sally Beauty recorded a negative earnings surprise of
7.7%. Let's see how things are shaping up for this
Factors Influencing This Quarter
In the previous quarter, Sally Beauty's results were adversely
impacted by harsh weather conditions in the U.S., leading to many
store closures, which in turn led to soft traffic and sluggish
sales growth. However, regions that remained unaffected by store
closures witnessed improved customer traffic. Hence, given its
expectations of improving retail traffic, the company is optimistic
about its growth prospects. However, management foresees a rise in
selling, general and administrative expenditure this quarter.
Our proven model does not conclusively show that Sally Beauty 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:
: 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 both the Most Accurate
estimate and the Zacks Consensus Estimate stand at 43 cents.
: Sally Beauty 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
Citi Trends, Inc. (
), Earnings ESP of +6.90% and a Zacks Rank #1 (Strong Buy).
Abercrombie & Fitch Co. (
), Earnings ESP of +18.18% and a Zacks Rank #2 (Buy).
Conns Inc. (
), Earnings ESP of +2.70% and a Zacks Rank #2.
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SALLY BEAUTY CO (SBH): Free Stock Analysis
ABERCROMBIE (ANF): Free Stock Analysis Report
CITI TRENDS INC (CTRN): Free Stock Analysis
CONNS INC (CONN): Free Stock Analysis Report
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