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Citi Trends (CTRN): What Will Q2 Earnings Release Unveil?
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Citi Trends, Inc. (CTRN - Free Report) is set to report second-quarter fiscal 2016 results on Aug 17, before the market opens. The big question facing investors is, whether this off-price retailer of urban fashion apparel and accessories will be able to deliver a positive earnings surprise in the quarter to be reported. A look at the company’s past performance unveils that it underperformed the Zacks Consensus Estimate in three of the last four quarters, with an average miss of 5.7% in the trailing four quarters. Let’s see how things are shaping up for this announcement.
Our proven model does not conclusively show that Citi Trends is likely to beat estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1, 2 or 3 for this to happen. Citi Trends has an ESP of 0.00% as the Most Accurate estimate and the Zacks Consensus Estimate both stand at a loss of 5 cents. Citi Trends’ Zacks Rank #3 (Hold) increases the predictive power of ESP. However, the company’s ESP of 0.00% makes surprise prediction difficult.
Factors Influencing this Quarter
Citi Trends may benefit from its strategies like better utilization of floor area, improvisation of merchandise margins and efficient inventory management, which have been helping it to turn its operating performance around. Also, the company is currently testing its website, which reflects its focus on capturing eCommerce business. Apart from this, it boasts healthy financials and cash flow generation ability.
However, the seasonal nature of Citi Trends’ business exposes it to the risk of failing to perform well in the peak season. The company typically generates stronger sales during the first and fourth quarters, which are characterized by the spring and holiday seasons. Moreover, the ever changing consumer tastes and preferences remain a threat. Further, the company, which has been posting murky results for three quarters now, expects its average units sold to remain pressurized in fiscal 2016, thus posing concerns. Nonetheless, estimates have been stable lately ahead of the company’s second-quarter earnings release.
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:
Lowe's Companies, Inc. (LOW - Free Report) has an Earnings ESP of +2.13% and a Zacks Rank #2 (Buy).
Best Buy Co., Inc. (BBY - Free Report) has an Earnings ESP of +7.14% and a Zacks Rank #2.
The Children's Place, Inc. (PLCE - Free Report) has an Earnings ESP of +25.00% and a Zacks Rank #2.
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 >>
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Citi Trends (CTRN): What Will Q2 Earnings Release Unveil?
Citi Trends, Inc. (CTRN - Free Report) is set to report second-quarter fiscal 2016 results on Aug 17, before the market opens. The big question facing investors is, whether this off-price retailer of urban fashion apparel and accessories will be able to deliver a positive earnings surprise in the quarter to be reported. A look at the company’s past performance unveils that it underperformed the Zacks Consensus Estimate in three of the last four quarters, with an average miss of 5.7% in the trailing four quarters. Let’s see how things are shaping up for this announcement.
CITI TRENDS INC Price and EPS Surprise
CITI TRENDS INC Price and EPS Surprise | CITI TRENDS INC Quote
Zacks Model Shows Unlikely to Beat Estimates
Our proven model does not conclusively show that Citi Trends is likely to beat estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1, 2 or 3 for this to happen. Citi Trends has an ESP of 0.00% as the Most Accurate estimate and the Zacks Consensus Estimate both stand at a loss of 5 cents. Citi Trends’ Zacks Rank #3 (Hold) increases the predictive power of ESP. However, the company’s ESP of 0.00% makes surprise prediction difficult.
Factors Influencing this Quarter
Citi Trends may benefit from its strategies like better utilization of floor area, improvisation of merchandise margins and efficient inventory management, which have been helping it to turn its operating performance around. Also, the company is currently testing its website, which reflects its focus on capturing eCommerce business. Apart from this, it boasts healthy financials and cash flow generation ability.
However, the seasonal nature of Citi Trends’ business exposes it to the risk of failing to perform well in the peak season. The company typically generates stronger sales during the first and fourth quarters, which are characterized by the spring and holiday seasons. Moreover, the ever changing consumer tastes and preferences remain a threat. Further, the company, which has been posting murky results for three quarters now, expects its average units sold to remain pressurized in fiscal 2016, thus posing concerns. Nonetheless, estimates have been stable lately ahead of the company’s second-quarter earnings release.
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:
Lowe's Companies, Inc. (LOW - Free Report) has an Earnings ESP of +2.13% and a Zacks Rank #2 (Buy).
Best Buy Co., Inc. (BBY - Free Report) has an Earnings ESP of +7.14% and a Zacks Rank #2.
The Children's Place, Inc. (PLCE - Free Report) has an Earnings ESP of +25.00% and a Zacks Rank #2.
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 >>