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Will PVH Corp (PVH) Continue Positive Earnings Trend in Q4?
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PVH Corporation (PVH - Free Report) is slated to report fourth-quarter fiscal 2017 results on Mar 28. The question lingering in investors’ minds is whether this designer and marketer of branded apparel, footwear and other accessories will be able to deliver positive earnings surprise in the to-be-reported quarter.
The company delivered positive earnings surprise of 3.8% in the previous quarter. In the trailing four quarters, it outperformed the Zacks Consensus Estimate by an average of 2.6%. Let’s see how things are shaping up prior to this announcement.
What to Expect?
The Zacks Consensus Estimate for the quarter under review is $1.47 per share, reflecting growth of 19.5% from the year-ago quarter. We note that the Zacks Consensus Estimate for the quarter has been stable in the last 30 days. Analysts polled by Zacks anticipate revenues of $2.34 billion, up 11.2% from the year-ago quarter.
Moreover, we note that the stock outperformed the industry in the last three months. The company’s shares have increased 6.7%, while the industry inched up 1%.
Factors at Play
PVH boasts a spectacular positive earnings surprise record for 14 consecutive quarters along with five straight quarters of sales beat. This robust surprise trend is mainly backed by significant momentum at its premium Calvin Klein and Tommy Hilfiger brands, particularly in the international regions.
Going forward, PVH expects to deliver robust revenues and earnings in fourth-quarter and fiscal 2017. In fourth-quarter fiscal 2017, the company expects total revenues to jump 11% year over year, while it is anticipated to advance 8% on a constant-currency basis. Brand-wise, revenues are expected to jump 16% (or 12% on a currency-neutral basis) at Calvin Klein and 12% (or 7% on a currency-neutral basis) at Tommy Hilfiger, while revenues for Heritage Brands are anticipated to decline nearly 1%.
Adjusted earnings per share for the fiscal fourth-quarter are expected to be $1.42-$1.44, including 2 cents per share positive impact from foreign currency translations. On a GAAP basis, the company envisions earnings per share of $1.35-$1.37.
For fiscal 2017, the company anticipates revenues to increase 7% year over year while currency neutral revenues are anticipated to grow 6%. Also, management envisions fiscal 2017 adjusted earnings per share to be $7.78-$7.80.
However, concerns regarding the volatile macroeconomic and geopolitical environment remain. Moreover, PVH Corp.’s significant international presence, as well as outlets in various tourist destinations across the United States, exposes it to foreign currency risks. In fact, currency headwinds have been hurting the company’s results for a while now.
While currency rates are expected to improve in the fourth quarter, it is likely to hurt fiscal 2017 earnings by 17 cents per share.
What the Zacks Model Unveils?
Our proven model does not show that PVH Corp. 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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
PVH Corp. has an Earnings ESP of -0.80%. Although its Zacks Rank #3 increases the predictive power of ESP, the stock’s negative ESP makes earnings prediction difficult.
Stocks Poised to Beat Earnings Estimates
Here are some other companies you may want to consider as our model shows that these, too, have the right combination of elements to post an earnings beat:
Darden Restaurants Inc. (DRI - Free Report) has an Earnings ESP of +0.76% and Zacks Rank #2.
lululemon athletica Inc. (LULU - Free Report) has an Earnings ESP of +1.30% and Zacks Rank #3.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
Image: Bigstock
Will PVH Corp (PVH) Continue Positive Earnings Trend in Q4?
PVH Corporation (PVH - Free Report) is slated to report fourth-quarter fiscal 2017 results on Mar 28. The question lingering in investors’ minds is whether this designer and marketer of branded apparel, footwear and other accessories will be able to deliver positive earnings surprise in the to-be-reported quarter.
The company delivered positive earnings surprise of 3.8% in the previous quarter. In the trailing four quarters, it outperformed the Zacks Consensus Estimate by an average of 2.6%. Let’s see how things are shaping up prior to this announcement.
What to Expect?
The Zacks Consensus Estimate for the quarter under review is $1.47 per share, reflecting growth of 19.5% from the year-ago quarter. We note that the Zacks Consensus Estimate for the quarter has been stable in the last 30 days. Analysts polled by Zacks anticipate revenues of $2.34 billion, up 11.2% from the year-ago quarter.
PVH Corp. Price, Consensus and EPS Surprise
PVH Corp. Price, Consensus and EPS Surprise | PVH Corp. Quote
Moreover, we note that the stock outperformed the industry in the last three months. The company’s shares have increased 6.7%, while the industry inched up 1%.
Factors at Play
PVH boasts a spectacular positive earnings surprise record for 14 consecutive quarters along with five straight quarters of sales beat. This robust surprise trend is mainly backed by significant momentum at its premium Calvin Klein and Tommy Hilfiger brands, particularly in the international regions.
Going forward, PVH expects to deliver robust revenues and earnings in fourth-quarter and fiscal 2017. In fourth-quarter fiscal 2017, the company expects total revenues to jump 11% year over year, while it is anticipated to advance 8% on a constant-currency basis. Brand-wise, revenues are expected to jump 16% (or 12% on a currency-neutral basis) at Calvin Klein and 12% (or 7% on a currency-neutral basis) at Tommy Hilfiger, while revenues for Heritage Brands are anticipated to decline nearly 1%.
Adjusted earnings per share for the fiscal fourth-quarter are expected to be $1.42-$1.44, including 2 cents per share positive impact from foreign currency translations. On a GAAP basis, the company envisions earnings per share of $1.35-$1.37.
For fiscal 2017, the company anticipates revenues to increase 7% year over year while currency neutral revenues are anticipated to grow 6%. Also, management envisions fiscal 2017 adjusted earnings per share to be $7.78-$7.80.
However, concerns regarding the volatile macroeconomic and geopolitical environment remain. Moreover, PVH Corp.’s significant international presence, as well as outlets in various tourist destinations across the United States, exposes it to foreign currency risks. In fact, currency headwinds have been hurting the company’s results for a while now.
While currency rates are expected to improve in the fourth quarter, it is likely to hurt fiscal 2017 earnings by 17 cents per share.
What the Zacks Model Unveils?
Our proven model does not show that PVH Corp. 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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
PVH Corp. has an Earnings ESP of -0.80%. Although its Zacks Rank #3 increases the predictive power of ESP, the stock’s negative ESP makes earnings prediction difficult.
Stocks Poised to Beat Earnings Estimates
Here are some other companies you may want to consider as our model shows that these, too, have the right combination of elements to post an earnings beat:
Guess? Inc. (GES - Free Report) has an Earnings ESP of +2.19% and Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Darden Restaurants Inc. (DRI - Free Report) has an Earnings ESP of +0.76% and Zacks Rank #2.
lululemon athletica Inc. (LULU - Free Report) has an Earnings ESP of +1.30% and Zacks Rank #3.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
See This Ticker Free >>