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Hibbett (HIBB) Q4 Earnings: Disappointment in the Cards?
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Hibbett Sports Inc. (HIBB - Free Report) is slated to release fourth-quarter fiscal 2017 results on Mar 10. The big question facing investors is, whether this sporting goods retailer will be able to deliver a positive earnings surprise in the quarter to be reported.
Last quarter, the company had delivered a negative earnings surprise of 10.8%. In fact, the bottom line delivered an average negative surprise of 1.1% in the trailing four quarters. However, the company has outperformed the Zacks Consensus Estimate in three of the trailing four quarters. Let’s see how things are shaping up for this announcement.
Recently, Hibbett reported soft preliminary results for fourth-quarter fiscal 2017 due to a tough retail environment. Net sales for the fiscal fourth quarter inched up 0.5% to $246.9 million, while comparable store sales (comps) dipped 2.2%. Management attributed the disappointing holiday quarter comps on sluggish traffic and weaker-than-anticipated apparel and equipment sales. This was partly compensated by strength noted across the footwear category, backed by enhanced collections at stores.
Owing to the soft results, Hibbett provided a drab earnings outlook for the fourth quarter, alongside issuing guidance for fiscal 2018. The company envisions fourth-quarter earnings in the range of 53–55 cents per share, compared with 76 cents recorded in the year-ago period.
Additionally, the Zacks Consensus Estimates for the fourth quarter and fiscal 2017 have been witnessing a downtrend ahead of the company’s earnings release. Estimates for the fourth quarter and fiscal 2017 have declined by 15 cents and 14 cents, respectively, to 54 cents per share and $2.72 per share. The current Zacks Consensus Estimate of 54 cents for the fourth quarter, reflects a year-over-year decline of nearly 28.5%. Analysts polled by Zacks expect revenues of $246.9 million for the fiscal fourth quarter, reflecting 0.5% growth from the year-ago quarter.
Furthermore, shares of Hibbett have underperformed the broader industry in the last three months. Hibbett’s shares slumped 28.8% in the last three months, underperforming the Zacks categorized Retail–Miscellaneous/Diversified industry’s fall of 6.7% in the same time frame. All these factors make us cautious on the company’s upcoming earnings release.
Nonetheless, Hibbett’s long term strategies bode well. We believe the company stands to gain from store-expansion efforts and small-market strategy. Also, we applaud Hibbett’s financial position, as the company enjoys a debt-free status and a healthy cash position that helps it to make share buybacks.
Earnings Whispers
Our proven model does not conclusively show that Hibbett 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. This is not the case here, as you will see below:
Zacks ESP: Earnings ESP for Hibbett is currently pegged at 0.00%. This is because the Most Accurate estimate and the Zacks Consensus Estimate are both pegged at 54 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Hibbett currently carries a Zacks Rank #5 (Strong Sell). We caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks that Warrant a Look
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:
Fred’s Inc. expected to report earnings on Mar 22, has an Earnings ESP of +21.05% and a Zacks Rank #3 (Hold).
Constellation Brands Inc. (STZ - Free Report) expected to report earnings on Apr 5, has an Earnings ESP of +14.29% and a Zacks Rank #3.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017?
Who wouldn't? Last year's market-beating Top 10 portfolio produced 5 double-digit winners. For example, oil and natural gas giant Pioneer Natural Resources and First Republic Bank racked up stellar gains of +44.9% and +44.3% respectively. Now a brand-new list for 2017 has been hand-picked from 4,400 companies covered by the Zacks Rank. See the 2017 Top 10 right now>>
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Hibbett (HIBB) Q4 Earnings: Disappointment in the Cards?
Hibbett Sports Inc. (HIBB - Free Report) is slated to release fourth-quarter fiscal 2017 results on Mar 10. The big question facing investors is, whether this sporting goods retailer will be able to deliver a positive earnings surprise in the quarter to be reported.
Last quarter, the company had delivered a negative earnings surprise of 10.8%. In fact, the bottom line delivered an average negative surprise of 1.1% in the trailing four quarters. However, the company has outperformed the Zacks Consensus Estimate in three of the trailing four quarters. Let’s see how things are shaping up for this announcement.
Hibbett Sports, Inc. Price and EPS Surprise
Hibbett Sports, Inc. Price and EPS Surprise | Hibbett Sports, Inc. Quote
Factors Influencing this Quarter
Recently, Hibbett reported soft preliminary results for fourth-quarter fiscal 2017 due to a tough retail environment. Net sales for the fiscal fourth quarter inched up 0.5% to $246.9 million, while comparable store sales (comps) dipped 2.2%. Management attributed the disappointing holiday quarter comps on sluggish traffic and weaker-than-anticipated apparel and equipment sales. This was partly compensated by strength noted across the footwear category, backed by enhanced collections at stores.
Owing to the soft results, Hibbett provided a drab earnings outlook for the fourth quarter, alongside issuing guidance for fiscal 2018. The company envisions fourth-quarter earnings in the range of 53–55 cents per share, compared with 76 cents recorded in the year-ago period.
Additionally, the Zacks Consensus Estimates for the fourth quarter and fiscal 2017 have been witnessing a downtrend ahead of the company’s earnings release. Estimates for the fourth quarter and fiscal 2017 have declined by 15 cents and 14 cents, respectively, to 54 cents per share and $2.72 per share. The current Zacks Consensus Estimate of 54 cents for the fourth quarter, reflects a year-over-year decline of nearly 28.5%. Analysts polled by Zacks expect revenues of $246.9 million for the fiscal fourth quarter, reflecting 0.5% growth from the year-ago quarter.
Furthermore, shares of Hibbett have underperformed the broader industry in the last three months. Hibbett’s shares slumped 28.8% in the last three months, underperforming the Zacks categorized Retail–Miscellaneous/Diversified industry’s fall of 6.7% in the same time frame. All these factors make us cautious on the company’s upcoming earnings release.
Nonetheless, Hibbett’s long term strategies bode well. We believe the company stands to gain from store-expansion efforts and small-market strategy. Also, we applaud Hibbett’s financial position, as the company enjoys a debt-free status and a healthy cash position that helps it to make share buybacks.
Earnings Whispers
Our proven model does not conclusively show that Hibbett 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. This is not the case here, as you will see below:
Zacks ESP: Earnings ESP for Hibbett is currently pegged at 0.00%. This is because the Most Accurate estimate and the Zacks Consensus Estimate are both pegged at 54 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Hibbett currently carries a Zacks Rank #5 (Strong Sell). We caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks that Warrant a Look
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:
Tailored Brands Inc. , slated to report earnings on Mar 8, has an Earnings ESP of +9.09% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Fred’s Inc. expected to report earnings on Mar 22, has an Earnings ESP of +21.05% and a Zacks Rank #3 (Hold).
Constellation Brands Inc. (STZ - Free Report) expected to report earnings on Apr 5, has an Earnings ESP of +14.29% and a Zacks Rank #3.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017?
Who wouldn't? Last year's market-beating Top 10 portfolio produced 5 double-digit winners. For example, oil and natural gas giant Pioneer Natural Resources and First Republic Bank racked up stellar gains of +44.9% and +44.3% respectively. Now a brand-new list for 2017 has been hand-picked from 4,400 companies covered by the Zacks Rank. See the 2017 Top 10 right now>>