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Deckers (DECK) Q2 Earnings: What's in Store for the Stock?
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Deckers Outdoor Corp. (DECK - Free Report) , a leading designer, producer and brand manager of innovative, niche footwear and accessories, is slated to report second-quarter fiscal 2017 results on Oct 27. 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 outperformed the Zacks Consensus Estimate by an average of 25.2%. Let’s see how things are shaping up prior to this announcement.
Unlikely to Beat Estimates
Our proven model does not conclusively show that Deckers 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. Deckers has an Earnings ESP of -5.88% as the Most Accurate estimate stands at $1.12, while the Zacks Consensus Estimate is pegged higher at $1.19. The company carries a Zacks Rank #3, which increases the predictive power of ESP. However, we need to have a positive ESP to be confident about an earnings surprise.
Factors Influencing this Quarter
Deckers is focused on expanding its brand assortments, bringing more innovative line of products, targeting consumers digitally via marketing and sturdy eCommerce initiatives. Further, it is optimizing omni-channel distribution as well. Additionally, the company has announced a restructuring plan that focuses on realigning its brands into two groups, along with optimization of its store fleet. Management envisions second-quarter net sales to be up 1−3% and earnings in the band of $1.12-$1.22 per share.
However, the company’s over-reliance on the UGG brand is a matter of concern, which plunged almost 20% during the first quarter. Moreover, foreign currency headwinds and stiff competition are likely to play spoilsport in the quarter to be reported.
Marinemax Inc. (HZO - Free Report) has an Earnings ESP of +31.82% and also sports a Zacks Rank #1.
Big Lots Inc. (BIG - Free Report) has an Earnings ESP of +50.00% and carries a Zacks Rank #2.
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Deckers (DECK) Q2 Earnings: What's in Store for the Stock?
Deckers Outdoor Corp. (DECK - Free Report) , a leading designer, producer and brand manager of innovative, niche footwear and accessories, is slated to report second-quarter fiscal 2017 results on Oct 27. 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 outperformed the Zacks Consensus Estimate by an average of 25.2%. Let’s see how things are shaping up prior to this announcement.
Unlikely to Beat Estimates
Our proven model does not conclusively show that Deckers 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. Deckers has an Earnings ESP of -5.88% as the Most Accurate estimate stands at $1.12, while the Zacks Consensus Estimate is pegged higher at $1.19. The company carries a Zacks Rank #3, which increases the predictive power of ESP. However, we need to have a positive ESP to be confident about an earnings surprise.
Factors Influencing this Quarter
Deckers is focused on expanding its brand assortments, bringing more innovative line of products, targeting consumers digitally via marketing and sturdy eCommerce initiatives. Further, it is optimizing omni-channel distribution as well. Additionally, the company has announced a restructuring plan that focuses on realigning its brands into two groups, along with optimization of its store fleet. Management envisions second-quarter net sales to be up 1−3% and earnings in the band of $1.12-$1.22 per share.
However, the company’s over-reliance on the UGG brand is a matter of concern, which plunged almost 20% during the first quarter. Moreover, foreign currency headwinds and stiff competition are likely to play spoilsport in the quarter to be reported.
DECKERS OUTDOOR Price and EPS Surprise
DECKERS OUTDOOR Price and EPS Surprise | DECKERS OUTDOOR Quote
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:
Avon Products Inc. has an Earnings ESP of +33.33% and flaunts a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Marinemax Inc. (HZO - Free Report) has an Earnings ESP of +31.82% and also sports a Zacks Rank #1.
Big Lots Inc. (BIG - Free Report) has an Earnings ESP of +50.00% and carries a Zacks Rank #2.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>