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On Holding (ONON) Gears Up for Q1 Earnings: What's in Store?
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On Holding AG (ONON - Free Report) is scheduled to report first-quarter 2024 results on May 14, before the opening bell. In the last reported quarter, the company’s earnings missed the Zacks Consensus Estimate by 154.6%.
Q1 Estimates
The Zacks Consensus Estimate for the bottom line is pegged at 16 cents per share, indicating no change from the year-ago levels. In the past 30 days, estimates for current-quarter earnings have witnessed downward revisions of 5.9%. The consensus mark for revenues is pegged at $555.5 million, suggesting an increase of 22.3% from the prior-year actuals.
Factors to Note
On Holding is anticipated to have experienced a boost in performance in the first quarter, fueled by heightened brand demand, introduction of new stores, an expanding footprint in China and ongoing product innovation efforts. These factors, along with strategic investments in brand visibility and robust sales figures through wholesale partners, are likely to have driven revenue growth in the quarter under discussion.
ONON consistently introduces new and innovative products, ensuring a continuous stream of fresh offerings to attract customers. It strategically targets both male and female demographics, broadening its appeal and maximizing market reach. Additionally, the company's diverse range of wholesale partnerships, spanning from trend-setting retailers to specialty running shops, enhances its distribution network and visibility. These factors are likely to have aided the company’s performance in the quarter to be reported.
Looking at first-quarter 2024, considering the strong wholesale performance in the same period of 2023, On Holding projects a rise in direct-to-consumer market share and aims to achieve net sales growth rate of 26% at constant currency.
However, it's worth noting that increased costs of sales are expected to have negatively impacted the company's profit margin in the quarter under review.
Our proven model doesn’t conclusively predict an earnings beat for On Holding this time around. That is because a stock needs to have a combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. This is not the case here.
Earnings ESP: Earnings ESP for On Holding is -16.50%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: On Holding currently carries a Zacks Rank #5 (Strong Sell).
Stocks With Favorable Combination
Here are three companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season.
Abercrombie & Fitch (ANF - Free Report) currently has an Earnings ESP of +5.10% and carries a Zacks Rank #2. The Zacks Consensus Estimate for first-quarter fiscal 2024 earnings per share (EPS) is pegged at $1.54, sharply up from 39 cents registered in the year-ago period. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for quarterly revenues is pegged at $940 million, which indicates an increase of 12.4% from the figure reported in the prior-year quarter. ANF has a trailing four-quarter earnings surprise of 715.6%, on average.
American Eagle Outfitters (AEO - Free Report) currently has an Earnings ESP of +11.11% and a Zacks Rank #2. The Zacks Consensus Estimate for quarterly EPS of 27 cents suggests an increase of 58.8% from the year-ago quarter.
The consensus mark for revenues is pegged at $1.15 billion, which implies an increase of 5.9% from the figure reported in the year-ago quarter. AEO has a trailing four-quarter earnings surprise of 22.7%, on average.
Ross Stores (ROST - Free Report) currently has an Earnings ESP of +3.24% and carries a Zacks Rank #3. The Zacks Consensus Estimate for first-quarter fiscal 2024 EPS is pegged at $1.34, which suggests an increase of 22.9% from the year-earlier levels.
The Zacks Consensus Estimate for quarterly revenues is pegged at $4.82 billion, which implies a jump of 7.3% from the figure reported in the prior-year quarter. ROST has a trailing four-quarter earnings surprise of 9.1%, on average.
Image: Bigstock
On Holding (ONON) Gears Up for Q1 Earnings: What's in Store?
On Holding AG (ONON - Free Report) is scheduled to report first-quarter 2024 results on May 14, before the opening bell. In the last reported quarter, the company’s earnings missed the Zacks Consensus Estimate by 154.6%.
Q1 Estimates
The Zacks Consensus Estimate for the bottom line is pegged at 16 cents per share, indicating no change from the year-ago levels. In the past 30 days, estimates for current-quarter earnings have witnessed downward revisions of 5.9%. The consensus mark for revenues is pegged at $555.5 million, suggesting an increase of 22.3% from the prior-year actuals.
Factors to Note
On Holding is anticipated to have experienced a boost in performance in the first quarter, fueled by heightened brand demand, introduction of new stores, an expanding footprint in China and ongoing product innovation efforts. These factors, along with strategic investments in brand visibility and robust sales figures through wholesale partners, are likely to have driven revenue growth in the quarter under discussion.
ONON consistently introduces new and innovative products, ensuring a continuous stream of fresh offerings to attract customers. It strategically targets both male and female demographics, broadening its appeal and maximizing market reach. Additionally, the company's diverse range of wholesale partnerships, spanning from trend-setting retailers to specialty running shops, enhances its distribution network and visibility. These factors are likely to have aided the company’s performance in the quarter to be reported.
Looking at first-quarter 2024, considering the strong wholesale performance in the same period of 2023, On Holding projects a rise in direct-to-consumer market share and aims to achieve net sales growth rate of 26% at constant currency.
However, it's worth noting that increased costs of sales are expected to have negatively impacted the company's profit margin in the quarter under review.
On Holding AG Price and EPS Surprise
On Holding AG price-eps-surprise | On Holding AG Quote
What Our Model Indicates
Our proven model doesn’t conclusively predict an earnings beat for On Holding this time around. That is because a stock needs to have a combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. This is not the case here.
Earnings ESP: Earnings ESP for On Holding is -16.50%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: On Holding currently carries a Zacks Rank #5 (Strong Sell).
Stocks With Favorable Combination
Here are three companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season.
Abercrombie & Fitch (ANF - Free Report) currently has an Earnings ESP of +5.10% and carries a Zacks Rank #2. The Zacks Consensus Estimate for first-quarter fiscal 2024 earnings per share (EPS) is pegged at $1.54, sharply up from 39 cents registered in the year-ago period. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for quarterly revenues is pegged at $940 million, which indicates an increase of 12.4% from the figure reported in the prior-year quarter. ANF has a trailing four-quarter earnings surprise of 715.6%, on average.
American Eagle Outfitters (AEO - Free Report) currently has an Earnings ESP of +11.11% and a Zacks Rank #2. The Zacks Consensus Estimate for quarterly EPS of 27 cents suggests an increase of 58.8% from the year-ago quarter.
The consensus mark for revenues is pegged at $1.15 billion, which implies an increase of 5.9% from the figure reported in the year-ago quarter. AEO has a trailing four-quarter earnings surprise of 22.7%, on average.
Ross Stores (ROST - Free Report) currently has an Earnings ESP of +3.24% and carries a Zacks Rank #3. The Zacks Consensus Estimate for first-quarter fiscal 2024 EPS is pegged at $1.34, which suggests an increase of 22.9% from the year-earlier levels.
The Zacks Consensus Estimate for quarterly revenues is pegged at $4.82 billion, which implies a jump of 7.3% from the figure reported in the prior-year quarter. ROST has a trailing four-quarter earnings surprise of 9.1%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.