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V.F. Corp. (VFC - Analyst Report) is scheduled to report its first-quarter 2014 results on Apr 25. Last quarter, this footwear and apparel retailer posted a negative earnings surprise of approximately 3.3%. Let's see how things are shaping up for this announcement.

Growth Factors in the Past Quarter

Though the company’s bottom-line results for fourth-quarter 2013 missed the Zacks Consensus Estimate, it came higher than the year-ago comparable quarter, primarily driven by increased sales and improved margins. V.F. Corp.’s top-line results mainly benefited from exceptional performance at The North Face and Vans brands. Also, robust performances by the international and direct-to-consumer operations contributed to the company’s growth. Further, the company provided an encouraging guidance for 2014.

Earnings Whispers?

Our proven model does not conclusively project V.F. Corp. as likely to beat earnings this quarter. A stock needs to have both positive Earnings ESP and a Zacks Rank #1, 2 or 3 to surpass earnings estimates. However, that is not the case here due to the following factors:

Zacks ESP: ESP for V.F. Corp. is 0.00% since the Most Accurate estimate stands at 64 cents per share, which is in line with the Zacks Consensus Estimate.

Zacks #3 Rank (Hold): V.F. Corp.’s Zacks Rank #3 increases the predictive power of ESP. However, we need to have a positive ESP to be confident of an earnings surprise call. We caution against stocks with Zacks Rank #4 and 5 (Sell-rated stocks) going into earnings announcement, especially when the company is undergoing negative estimate revisions.

Other Stocks to Consider

V.F. Corp. is not the only firm we are looking up to this earnings season. Our model shows that the following stocks have the right combination to post an earnings beat:

The Walt Disney Co. (DIS - Analyst Report) with an Earnings ESP of +3.13% holds a Zacks Rank #2 (Buy).

Coca-Cola Enterprises Inc. (CCE - Analyst Report) has an Earnings ESP of +2.27% and a Zacks Rank #2 (Buy).

Church & Dwight Co. Inc. (CHD - Snapshot Report) has an Earnings ESP of +1.37% and a Zacks Rank #3 (Hold).

Read the Full Research Report on VFC
Read the Full Research Report on CCE
Read the Full Research Report on CHD
Read the Full Research Report on DIS


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