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What Awaits Sportsmans Warehouse (SPWH) in Q2 Earnings?

Sportsmans Warehouse Holdings, Inc. SPWH is scheduled to report second-quarter fiscal 2020 results on Sep 2, after market close. In the last reported quarter, the company delivered an earnings surprise of 116.7%. Moreover, the bottom line outperformed the consensus estimate by 32.5%, on average, in the trailing four quarters.

The Zacks Consensus Estimate for the company’s fiscal second-quarter earnings stands at 31 cents, indicating a 138.5% jump from the year-ago quarter’s reported figure. Moreover, the consensus mark has moved north by 4 cents in the past seven days. For fiscal second-quarter revenues, the consensus mark is pegged at $283.9 billion, suggesting 34% growth from the prior-year quarter’s reported figure.

Key Factors to Note

Sportsmans Warehouse has been gaining from a solid online demand. The company’s enhanced e-commerce capabilities, including ship-to-home, BOPUS and curbside pickup services are helping it fulfill the sudden spike in consumers’ demand for firearm ammunition and fishing. Driven by the robust demand, management envisions increased sales from firearms and ammunition along with higher sales volume in its e-commerce operations, which are likely to have aided results in the fiscal second quarter.

Further, the company has been witnessing an uptick in new customers at stores and website. It has been utilizing its stores to fulfill online orders recently. These endeavors are likely to have favorably impacted its top line in the fiscal second quarter.

However, continued uncertainty, surrounding the ongoing COVID-19 situation, remains a matter of concern. Management on its last reported quarter’s earnings call projected supply-chain disruptions due to the ongoing pandemic to affect results in the to-be-reported quarter to some extent.

Sportsmans Warehouse Holdings, Inc. Price and EPS Surprise

 

Sportsmans Warehouse Holdings, Inc. Price and EPS Surprise

Sportsmans Warehouse Holdings, Inc. price-eps-surprise | Sportsmans Warehouse Holdings, Inc. Quote

Zacks Model

Our proven model predicts an earnings beat for Sportsmans Warehousethis season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Sportsmans Warehousehas a Zacks Rank #2 and an Earnings ESP of +25.81%.

Other Stocks Poised to Beat Earnings Estimates

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

Signet Jewelers SIG currently has an Earnings ESP of +38.71% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Darden Restaurants DRI has an Earnings ESP of +100.00% and a Zacks Rank #2 at present.

Costco Wholesale Corporation COST currently has an Earnings ESP of +2.50% and a Zacks Rank #3.

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