V. F. Corp.
) is scheduled to report its fourth-quarter and fiscal 2013
results on Feb 14. Last quarter, this footwear and apparel
retailer posted a positive earnings surprise of approximately
4.3%. Let's see how things are shaping up for this announcement.
FINISH LINE-CLA (FINL): Free Stock Analysis
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HOME DEPOT (HD): Free Stock Analysis Report
V F CORP (VFC): Free Stock Analysis Report
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Growth Factors in the Past Quarter
V. F. Corp. came up with strong third-quarter fiscal 2013
earnings mainly driven by improved top line and margins. Top-line
improvement stemmed from robust growth in Outdoor & Action
Sports, Jeanswear and International as well as Direct-to-Consumer
revenues, while gross margin benefited from improvement in higher
margin businesses and lower product costs. Further, the
company provided an encouraging guidance for fiscal 2013.
Moreover, the company's recently completed 4:1 stock split
instilled further confidence into the stock.
Our proven model does not conclusively project V. F. Corp. as
likely to beat earnings this quarter. A stock needs to have both
and a Zacks Rank #1, 2 or 3 to surpass earnings estimates.
However, this is not the case here due to the following factors:
ESP (Expected Surprise Prediction) for V. F. Corp. is 0.00% since
the Most Accurate estimate stands at 84 cents per share, which is
in line with the Zacks Consensus Estimate.
Zacks #3 Rank (Hold):
V. F. Corp's Zacks Rank #3 increases the predictive power of ESP.
However, we also need to have a positive ESP to be confident of
an earnings surprise call. We caution against stocks with a Zacks
Rank #4 and #5 (Sell-rated stocks) going into earnings
announcement, especially when the company is undergoing negative
Other Stocks to Consider
V. F. Corp. is not the only firm we are looking up to this
earnings season. Our model shows that the following stocks have
the right combination to post an earnings beat:
Foot Locker Inc.
) has an Earnings ESP of +1.33% and a Zacks Rank #2 (Buy).
Finish Line Inc.
) has an Earnings ESP of +1.18% and a Zacks Rank #2 (Buy).
The Home Depot Inc.
) with an Earnings ESP of +1.39% holds a Zacks Rank #3