Wolverine World Wide Inc
) 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.
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
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
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:
), Earnings ESP of +2.78% and a Zacks Rank #1 (Strong Buy).
Capella Education Co.
), Earnings ESP of +2.50% and a Zacks Rank #1 (Strong Buy).
Deckers Outdoor Corp
), Earnings ESP of +4.17% and a Zacks Rank #2 (Buy).
CAPELLA EDUCATN (CPLA): Free Stock Analysis
DECKERS OUTDOOR (DECK): Free Stock Analysis
MANPOWER INC WI (MAN): Free Stock Analysis
WOLVERINE WORLD (WWW): Free Stock Analysis
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