On Holding AG ONON is scheduled to report third-quarter 2024 results on Nov. 12, before the opening bell. In the previous quarter, the company reported a negative earnings surprise of 15.8%.
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How are Estimates Placed?
The Zacks Consensus Estimate for third-quarter earnings is pegged at 24 cents per share, indicating growth of 9.1% from the 22 cents reported in the year-ago quarter.
For revenues, the consensus mark is pegged at $718.8 million. The metric suggests an increase of 32.2% from the year-ago quarter’s reported figure.
On Holding AG Price and EPS Surprise
On Holding AG price-eps-surprise | On Holding AG Quote
Let’s take a look at how things have shaped up in the quarter.
Factors to Note
On Holding’s third-quarter performance is likely to have benefited from technological innovation, expanded retail presence and solid brand partnerships.
One of On Holding's standout innovations, LightSpray technology, exemplifies its commitment to manufacturing efficiency, sustainability and cutting-edge performance. LightSpray has laid the groundwork for revolutionary manufacturing processes, creating new opportunities to expand the brand’s premium offerings and setting the stage for future product lines. Given its ability to cater to both competitive athletes and a broader performance-driven community, the initiative is likely to have strengthened the brand’s appeal in the premium sportswear market in the third quarter.
ONON has strategically leveraged high-profile endorsements to extend its global presence. Collaborations with cultural icons like Zendaya and top athletes such as Roger Federer and Iga ??wi??tek have bolstered On’s position as a lifestyle and performance brand. These partnerships are likely to have boosted the brand’s awareness in the third quarter.
Increased focus on multi-channel growth strategy, including direct-to-consumer (D2C) and wholesale channels, is likely to have contributed to the company’s third-quarter top line. Attributes of strength in website traffic, a well-received mobile app and new marketing strategies are likely to have driven engagement levels with new and existing customers in the third quarter.
The ongoing transition to a fully automated warehouse in Atlanta has temporarily led to capacity constraints and inventory shortages, impacting D2C and wholesale deliveries. The current setup at the Atlanta facility is suboptimal, resulting in unreliable, late deliveries and occasional inventory gaps. Although On has managed to alleviate some of these issues by transferring inventory to its West Coast warehouse, capacity limitations persist. This situation is likely to have affected On’s ability to meet full demand within the Americas.
Elevated marketing expenses are likely to have affected margins in the third quarter as well.
What the Zacks Model Unveils
Our proven model does not predict an earnings beat for On Holding this time. 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. But that's not the case here.
ONON’s Earnings ESP: On Holding has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
ONON’s Zacks Rank: The company has a Zacks Rank #5 (Strong Sell).
Stocks Poised to Beat Earnings Estimates
Here are some better stocks from the Zacks Consumer Discretionary space that investors may consider, as our model shows that these have the right combination of elements to post an earnings beat.
Bowlero Corp. BOWL has an Earnings ESP of +10.20% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
BOWL’s earnings for the to-be-reported quarter are expected to increase 1300% from the prior-year reported level. It posted better-than-expected earnings in one of the trailing four quarters and missed on the other three occasions, with the negative average surprise being 119.4%.
Norwegian Cruise Line Holdings Ltd. NCLH currently has an Earnings ESP of +3.28% and a Zacks Rank of 2.
NCLH’s earnings for the to-be-reported quarter are expected to increase 150% from the prior-year reported level. It posted better-than-expected earnings in three of the trailing four quarters and missed on the other occasion, with the average surprise being 4.2%.
OneSpaWorld Holdings Limited OSW presently has an Earnings ESP of +1.21% and a Zacks Rank of 2.
OSW’s earnings for the to-be-reported quarter are expected to increase 75% from the prior-year reported level. It posted better-than-expected earnings in two of the trailing four quarters, met on one occasion and missed once, with an average negative surprise of 1.2%.
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