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Hibbett (HIBB) to Report Q3 Earnings: What's in the Cards?

Hibbett Sports, Inc.HIBB , the sporting goods retailer, is slated to report third-quarter fiscal 2016 results on Nov 20. In the last quarter, the company had delivered in line earnings. Let's see how things are shaping up for this announcement.

Factors Influencing this Quarter

Hibbett posted mixed results for second-quarter fiscal 2016, wherein earnings were in line but sales fell short of expectations. Further, margins remained weak during the quarter due to unfavorable markdown timing coupled with higher store occupancy costs. Though the company witnessed an improved sales trend in early August, management lowered its comps and earnings outlook for fiscal 2016, posing a concern. Hence, we are skeptical about the company's upcoming quarterly results.

Earnings Whispers

Our proven model does not conclusively show that Hibbett is likely to beat earnings this quarter. This 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:

Zacks ESP: Earnings ESP for Hibbett is currently -1.47%. This is because the Most Accurate estimate of 67 cents is lower than the Zacks Consensus Estimate of 68 cents.

Zacks Rank: Hibbett carries a Zacks Rank #4 (Sell). We caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.

Stocks that Warrant a Look

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 quarter:

Abercrombie & Fitch Co. ANF has an Earnings ESP of +15.79% and a Zacks Rank #3 (Hold).

Chico's FAS Inc. CHS has an Earnings ESP of +5.00% and a Zacks Rank #3.

Dollar Tree Inc. DLTR has an Earnings ESP of +3.70% and a Zacks Rank #3.

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HIBBET SPORTS (HIBB): 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.


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

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