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Things You Must Know Before PVH Corp's (PVH) Q3 Earnings

PVH Corporation PVH is slated to release third-quarter fiscal 2019 results on Nov 25. In the last reported quarter, the company delivered a positive earnings surprise of 11.1%. Moreover, its bottom line beat estimates by 4.8%, on average, over the trailing four quarters.

The Zacks Consensus Estimate for the company’s fiscal third-quarter earnings is pegged at $3.00, indicating a 6.5% decline from the prior-year quarter’s reported figure. Its estimates have been unchanged in the past 30 days. The consensus mark for quarterly revenues is pegged at $2.54 billion, implying 0.8% growth from the year-ago reported number.

PVH Corp. Price and EPS Surprise

 

PVH Corp. Price and EPS Surprise

PVH Corp. price-eps-surprise | PVH Corp. Quote

Key Factors to Note

PVH Corp’s Calvin Klein brand has been receiving positive customer response for the core and basic denim styles within Calvin Klein Jeans. Encouragingly, for third-quarter fiscal 2019, management anticipates revenue growth of 1% (up 3% at cc) for the segment.

Further, the company’s Tommy Hilfiger brand has been gaining expanding market share for the past few quarters. For the fiscal third quarter, management expects revenue growth of 5% for the segment.

However, sluggishness in the Heritage Brands segment is expected to have hurt the company’s top line to some extent in the fiscal third quarter. For the to-be-reported quarter, management anticipates revenue decline of 10% for the segment.

Additionally, management expects foreign currency headwinds to hurt the bottom line by 9 cents in the fiscal third quarter. It projects adjusted earnings per share of $2.95-$3.00 for the quarter to be reported.

Moreover, the company has been witnessing soft traffic trends, specifically in Asia, thanks to escalated tariffs and protests in Hong Kong. Persistence of these trends is likely to get reflected in fiscal third-quarter results.

Zacks Model

Our proven model does not conclusively predict an earnings beat for PVH Corp 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. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

PVH Corp carries a Zacks Rank #3 but its Earnings ESP of 0.00% makes surprise prediction difficult.

Stocks to Consider

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

Guess GES has an Earnings ESP of +1.78%. It currently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

G-III Apparel GIII presently has an Earnings ESP of +0.94% and a Zacks Rank of 3.

lululemon athletica LULU currently has an Earnings ESP of +0.73% and a Zacks Rank #3.

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