Will Wolverine (WWW) Beat Earnings? - Analyst Blog


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Wolverine World Wide Inc . ( WWW ) is slated to report its third-quarter fiscal 2013 results on Oct 8, 2013, before the market opens. In the last quarter, it posted a positive surprise of 35.3%. Let's see how things are shaping up for this announcement.

Growth Factors this Past Quarter

Wolverine came up with strong second-quarter 2013 results, owing to the robust performance of its newly acquired brands. Top line surged 88% year over year, while gross margin expanded 320 basis points to 41%, reflecting increased contribution from high margin consumer direct operations.

Earnings Whispers?

However, our proven model does not conclusively show that Wolverine is likely to beat earnings this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1, #2 or #3 for this to happen. This is not the case here as you will see below.

Negative Zacks ESP: ESP for Wolverine is -1.92%. This is because the Most Accurate Estimate stands at $1.02, while the Zacks Consensus Estimate is pegged at $1.04.

Zacks Rank #3 (Hold): Wolverine carries a Zacks Rank #3 (Hold). However, the Zacks Rank #3 when combined with a negative ESP makes surprise prediction difficult. We caution against stocks with Zacks Ranks #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 earnings beat:

ManpowerGroup Inc . ( MAN ), Earnings ESP of +2.78% and a Zacks Rank #1 (Strong Buy).

Capella Education Co. ( CPLA ), Earnings ESP of +2.50% and a Zacks Rank #1 (Strong Buy).

Deckers Outdoor Corp . ( DECK ), Earnings ESP of +4.17% and a Zacks Rank #2 (Buy).

CAPELLA EDUCATN (CPLA): Free Stock Analysis Report

DECKERS OUTDOOR (DECK): Free Stock Analysis Report

MANPOWER INC WI (MAN): Free Stock Analysis Report

WOLVERINE WORLD (WWW): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Business , Earnings , Stocks
More Headlines for: CPLA , DECK , MAN , WWW

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