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Check Out Tapestry's (TPR) Probability to Beat Q3 Earnings
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Tapestry, Inc. (TPR - Free Report) is slated to release third-quarter fiscal 2018 results on May 1. In the trailing four quarters, this house of lifestyle brands as well as designer and marketer of fine accessories and gifts has outperformed the Zacks Consensus Estimate by an average of 11.9%. Last quarter, the company delivered a positive earnings surprise of 24.4%.
Investors are counting on another estimate beat by Tapestry in the to-be-reported quarter. Let’s delve deep and take a look at the factors that will be influencing the results.
Factors at Play
Tapestry looks way more disciplined in its approach to adapt to the changing retail landscape. The company is undergoing a brand transformation and introducing modern luxury concept stores in key markets. Its long-term growth drivers include expansion of its global distribution model and venturing into under-penetrated markets. Further, the company launched Coach Create, a platform to customize bags either online or in outlets.
Management is viewing the acquisitions of Stuart Weitzman and Kate Spade as a significant step toward becoming a multi-brand company. Moreover, management has undertaken transformation initiatives revolving around product, stores and marketing, which are likely to have a favorable impact on third-quarter results.
Additionally, the company is aggressively expanding its e-commerce platform. Tapestry also plans to undertake strategic measures involving the upgrade of core technology platforms and enhancement of international supply chain. However, sluggish mall traffic, increased online competition and aggressive pricing strategy are affecting the industry, and Tapestry is not fully immune to it.
After registering a bottom-line increase of 42.7% in the second quarter, Tapestry is likely to record year-over-year growth in the third quarter of fiscal 2018 as well. The Zacks Consensus Estimate for the quarter under review stands at 50 cents compared with 46 cents reported in the year-ago quarter. We note that the Zacks Consensus Estimate has remained stable in the last 30 days.
Analysts polled by Zacks now project revenues of $1,302 million, up from $995 million in the year-ago quarter. If all goes well, this will be the third straight quarter of top-line growth for the company. We note that net sales of this New York-based company have surged 35% and 24% in the second and first quarter, respectively.
What Does the Zacks Model Unveil?
Our proven model shows that Tapestry is likely to beat estimates this quarter. A stock needs to have both a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) and a positive Earnings ESP for this to happen. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Tapestry has a Zacks Rank #2 and an Earnings ESP of +1.83%. This makes us reasonably confident of an earnings beat.
Other Stocks With Favorable Combination
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:
Urban Outfitters, Inc. (URBN - Free Report) has an Earnings ESP of +0.62% and a Zacks Rank #1.
Nordstrom, Inc. (JWN - Free Report) has an Earnings ESP of +8.97% and a Zacks Rank #2.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Image: Bigstock
Check Out Tapestry's (TPR) Probability to Beat Q3 Earnings
Tapestry, Inc. (TPR - Free Report) is slated to release third-quarter fiscal 2018 results on May 1. In the trailing four quarters, this house of lifestyle brands as well as designer and marketer of fine accessories and gifts has outperformed the Zacks Consensus Estimate by an average of 11.9%. Last quarter, the company delivered a positive earnings surprise of 24.4%.
Investors are counting on another estimate beat by Tapestry in the to-be-reported quarter. Let’s delve deep and take a look at the factors that will be influencing the results.
Factors at Play
Tapestry looks way more disciplined in its approach to adapt to the changing retail landscape. The company is undergoing a brand transformation and introducing modern luxury concept stores in key markets. Its long-term growth drivers include expansion of its global distribution model and venturing into under-penetrated markets. Further, the company launched Coach Create, a platform to customize bags either online or in outlets.
Management is viewing the acquisitions of Stuart Weitzman and Kate Spade as a significant step toward becoming a multi-brand company. Moreover, management has undertaken transformation initiatives revolving around product, stores and marketing, which are likely to have a favorable impact on third-quarter results.
Additionally, the company is aggressively expanding its e-commerce platform. Tapestry also plans to undertake strategic measures involving the upgrade of core technology platforms and enhancement of international supply chain. However, sluggish mall traffic, increased online competition and aggressive pricing strategy are affecting the industry, and Tapestry is not fully immune to it.
Tapestry, Inc. Price, Consensus and EPS Surprise
Tapestry, Inc. Price, Consensus and EPS Surprise | Tapestry, Inc. Quote
How Are Estimates Faring?
After registering a bottom-line increase of 42.7% in the second quarter, Tapestry is likely to record year-over-year growth in the third quarter of fiscal 2018 as well. The Zacks Consensus Estimate for the quarter under review stands at 50 cents compared with 46 cents reported in the year-ago quarter. We note that the Zacks Consensus Estimate has remained stable in the last 30 days.
Analysts polled by Zacks now project revenues of $1,302 million, up from $995 million in the year-ago quarter. If all goes well, this will be the third straight quarter of top-line growth for the company. We note that net sales of this New York-based company have surged 35% and 24% in the second and first quarter, respectively.
What Does the Zacks Model Unveil?
Our proven model shows that Tapestry is likely to beat estimates this quarter. A stock needs to have both a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) and a positive Earnings ESP for this to happen. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Tapestry has a Zacks Rank #2 and an Earnings ESP of +1.83%. This makes us reasonably confident of an earnings beat.
Other Stocks With Favorable Combination
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:
KAR Auction Services, Inc. (KAR - Free Report) has an Earnings ESP of +5.41% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Urban Outfitters, Inc. (URBN - Free Report) has an Earnings ESP of +0.62% and a Zacks Rank #1.
Nordstrom, Inc. (JWN - Free Report) has an Earnings ESP of +8.97% and a Zacks Rank #2.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>