Select Comfort Corporation
), the home furnishing and fixtures retailer, is set to report
its first-quarter 2014 results on Apr 17, 2014. Last quarter, it
posted a negative surprise of 20.0%. Let us see how things are
shaping up for this announcement.
Factors in the Past Quarter
Aggressive discounting trends, a competitive retail landscape
coupled with unfavorable weather and reduced mall traffic
resulted in the dismal quarterly performance. Rising costs
was another contributing factor with operating expenses in 2013
having increased 7.2% year over year.
Our proven model does not conclusively project Select Comfort as
likely to beat earnings this quarter. That is because a stock
needs to have both a positive
and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) for this
to happen. This is not the case here as you will see below.
ESP for Select Comfort is 0.00%. This is because both the Most
Accurate Estimate and the Zacks Consensus Estimate stand at 31
Zacks Rank #3 (Hold)
Select Comfort's Zacks Rank #3 (Hold) lowers the predictive power
of ESP because this Zacks Rank when combined with a 0.00% ESP
makes surprise prediction difficult. We caution against stocks
with a Zacks Rank #4 and 5 (Sell-rated stocks) going into an
earnings announcement, especially when the company is witnessing
negative estimate revisions momentum.
Other Stocks to Consider
Here are some other companies you may want to consider as our
model shows these to have the right combination of elements to
post an earnings beat:
ALASKA AIR GRP (ALK): Free Stock Analysis
TD AMERITRADE (AMTD): Free Stock Analysis
SELECT COMFORT (SCSS): Free Stock Analysis
SOUTHN FIRST BC (SFST): Free Stock Analysis
To read this article on Zacks.com click here.
Alaska Air Group, Inc.
) with an Earnings ESP of 7.00% and a Zacks Rank #1
Southern First Bancshares, Inc.
) with an Earnings ESP of 7.41% and a Zacks Rank #1
) with an Earnings ESP of 6.06% and a Zacks Rank #2