Will Cabela's (CAB) Earnings Fall Shy of Estimates in Q4?

Cabela's IncorporatedCAB , a specialty retailer and direct marketer of hunting, fishing, camping, and related outdoor merchandise, is scheduled to report fourth-quarter 2016 results on Feb 16. The question lingering in investors' minds now is, whether the company will be able to deliver a positive earnings surprise in the quarter to be reported. In the trailing four quarters, it underperformed the Zacks Consensus Estimate by an average of 4.4%. In the last quarter, the company missed the Zacks Consensus Estimate by 33.8%. Let's see how things are shaping up for this announcement.

Unlikely to Beat Estimates

Our proven model does not conclusively show that Cabela's is likely to beat earnings estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. You may uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .

Cabela's has an Earnings ESP of 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at $1.23. The company carries a Zacks Rank #2 which increases the predictive power of ESP. However, we need to have a positive ESP to be confident about an earnings surprise.

Cabela's Inc Price, Consensus and EPS Surprise

Cabela's Inc Price, Consensus and EPS Surprise | Cabela's Inc Quote

Factors Influencing this Quarter

Cabela's multi-channel model, next-generation stores and cost-saving initiatives is likely to have a favorable impact in the quarter to be reported. Moreover, the next-generation stores are outperforming Cabela's legacy stores in terms of both sales and profit per square foot. We remain optimistic about these store formats as they require less capital investment, enhance store productivity and help augment sales per square foot.

Deceleration in the sale of sporting goods along with stiff competition from both brick & mortar and eCommerce businesses are making things tough for Cabela's. Moreover, the company's expansion in the geographies where it already serves has boomeranged, consequently cannibalizing sales and leading to lower traffic count at existing stores.

Cabela's has been exploring strategic alternatives, including a potential sale, after it came under pressure from an activist fund, Elliot Management. It accepted the buyout offer of Bass Pro Shops in all-cash deal valued at $5.5 billion.

Stocks Poised to Beat Earnings Estimates

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:

Dollar Tree, Inc. DLTR has an Earnings ESP of +0.75% and sports a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank stocks here .

Papa John's International, Inc. PZZA has an Earnings ESP of +4.55% and also carries a Zacks Rank #2.

Carrols Restaurant Group, Inc. TAST has an Earnings ESP of +16.67% and carries a Zacks Rank #2.

Zacks' Best Private Investment Ideas

In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?

Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Dollar Tree, Inc. (DLTR): Free Stock Analysis Report

Papa John's International, Inc. (PZZA): Free Stock Analysis Report

Carrols Restaurant Group, Inc. (TAST): Free Stock Analysis Report

Cabela's Inc (CAB): Free Stock Analysis Report

To read this article on click here.

Zacks Investment Research

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.

In This Story


Other Topics

Earnings Stocks

Latest Markets Videos


    Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at

    Learn More