Back to top

Image: Bigstock

Can Deckers (DECK) Keep the Earnings Streak Alive This Quarter?

Read MoreHide Full Article

Looking for a stock that might be in a good position to beat earnings at its next report? Consider Deckers Outdoor Corporation (DECK - Free Report) , a firm in the Shoes and Retail Apparel industry, which could be a great candidate for another beat.

This company has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. In fact, in these reports, DECK has beaten estimates by at least 20% in both cases, suggesting it has a nice short-term history of crushing expectations.

Earnings in Focus

Two quarters ago, DECK was expected to post a loss of $1.67 per share, while it actually produced a loss of $1.28 per share, a beat of 23.4%. Meanwhile, for the most recent quarter, the company looked to deliver $1.03 per share, when it actually saw $1.54 per share instead, representing a 49.5% positive surprise.

Thanks in part to this history, recent estimates have been moving higher for Deckers. In fact, the Earnings ESP for DECK is positive, which is a great sign of a coming beat.

After all, the Zacks Earnings ESP compares the most accurate estimate to the broad consensus, looking to find stocks that have seen big revisions as of late, suggesting that analysts have recently become more bullish on the company’s earnings prospects. This is the case for DECK, as the firm currently has a Zacks Earnings ESP of +2.19%, so another beat could be around the corner.

This is particularly true when you consider that DECK has a great Zacks Rank #2 (Buy), which can be a harbinger of outperformance and a signal for a strong earnings profile. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

When you add this solid Zacks Rank to a positive Earnings ESP, a positive earnings surprise happens nearly 70% of the time, so it seems pretty likely that DECK could see another beat at its next report, especially if recent trends are any guide.

Zacks Editor-in-Chief Goes "All In" on This Stock
 
Full disclosure, Kevin Matras now has more of his own money in one particular stock than in any other. He believes in its short-term profit potential and also in its prospects to more than double by 2019. Today he reveals and explains his surprising move in a new Special Report.

Download it free >>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Deckers Outdoor Corporation (DECK) - free report >>

Published in