Factors Shaping the Fate of Vector Group's (VGR) Q2 Earnings

Vector Group Ltd. VGR is likely to report a decline in the top and bottom lines when it releases second-quarter 2020 numbers on Aug 6, before the opening bell. The Zacks Consensus Estimate for revenues is pegged at almost $529.7 million, indicating a drop of 1.6% from the prior-year quarter’s reported figure.

The Zacks Consensus Estimate for earnings stands at 11 cents, suggesting a slump of 60.7% from the figure reported in the year-ago period. Notably, the consensus mark has remained stable in the past 30 days. In the last reported quarter, Vector Group delivered a significant earnings surprise. Also, the company, which operates through Tobacco and Real Estate segments, has a considerably high trailing four-quarter earnings surprise, on average.

Vector Group Ltd. Price and EPS Surprise

Vector Group Ltd. Price and EPS Surprise

Vector Group Ltd. price-eps-surprise | Vector Group Ltd. Quote

Key Factors to Note

Vector Group’s tobacco business has been benefiting from its efficient pricing strategy. Also, the company’s robust marketing and promotional plans have been yielding results. Apart from this, the initial pandemic-led increased buying led to a surge in cigarette volumes in the first quarter, though it is likely to have stabilized in the second quarter. However, the company’s real estate business has slowed down due to the pandemic. In its last earnings call, management said that its real estate transactions have been under pressure due to COVID-10, with New York seeing a major blow in particular. This remains a concern for Vector Group’s real estate business for the quarter under review.

What the Zacks Model Unveils

Our proven model doesn’t conclusively predict an earnings beat for Vector Group this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Vector Group currently has a Zacks Rank #3 and an Earnings ESP of 0.00%. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks With Favorable Combinations

Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season.

Flowers Foods FLO has an Earnings ESP of +4.49% and a Zacks Rank #2.

TreeHouse Foods THS has an Earnings ESP of +4.63% and a Zacks Rank #2.

Inter Parfums IPAR has an Earnings ESP of +31.25% and a Zacks Rank #3.

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