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PVH Corp's (PVH) Brand Strength to Aid Earnings Beat in Q1
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PVH Corporation (PVH - Free Report) is slated to report first-quarter fiscal 2018 results on May 30. 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 6.8% in the last reported quarter. It outperformed the Zacks Consensus Estimate in the trailing four quarters, with an average of 3.9%. 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 $2.25, indicating growth of 36.4% from the year-ago quarter. We note that the Zacks Consensus Estimate for the to-be-reported quarter has been stable in the last 30 days. Analysts polled by Zacks anticipate revenues of $2.28 billion, up 14.9% from the year-ago quarter.
Moreover, we note that the stock has outperformed the industry in the past year, driven by superb earnings history and brand strength. The company’s shares have increased 51.5% while the industry recorded growth of 43.4%.
Factors at Play
PVH boasts a spectacular positive earnings surprise record for 15 consecutive quarters along with six 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. Additionally, currency tailwinds are favoring the company.
Moreover, PVH Corp.’s diversified brand portfolio allows it to stay ahead of its peers to generate above-average industry growth and sustain its position in the current challenging environment. The company’s approach to brand management facilitates each of its brands to develop further through effective marketing strategies, financial control and operating leverage. Based on the strength of many of its brands, particularly Tommy Hilfiger and Calvin Klein, coupled with opportunities related to distribution, we believe that the company is poised for long-term growth.
Going forward, PVH expects total revenues to increase nearly 15% year over year in first-quarter fiscal 2018 while it is anticipated to advance 9% on a constant-currency basis. Brand-wise, revenues are expected to grow 17% (or 12% on a currency-neutral basis) at Calvin Klein, 19% (or 10% on a currency-neutral basis) at Tommy Hilfiger and 2% at Heritage Brands. Adjusted earnings per share, including 20 cents per share gain from foreign currency, are expected to be $2.20-$2.25 compared with $1.65 in the year-ago quarter.
What the Zacks Model Unveils
Our proven model conclusively shows 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 may uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
PVH Corp. has an Earnings ESP of +0.56% with a Zacks Rank #3. This increases the predictive power of ESP, thus, making us confident of an earnings beat.
Other Stocks Poised to Beat Earnings Estimates
Here are some other companies that you may want to consider as our model shows that these, too, have the right combination of elements to post an earnings beat:
Dollar General Corp. (DG - Free Report) has an Earnings ESP of +1.97% and a Zacks Rank #2.
Ulta Beauty Inc. (ULTA - Free Report) has an Earnings ESP of +0.59% and a Zacks Rank #2.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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PVH Corp's (PVH) Brand Strength to Aid Earnings Beat in Q1
PVH Corporation (PVH - Free Report) is slated to report first-quarter fiscal 2018 results on May 30. 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 6.8% in the last reported quarter. It outperformed the Zacks Consensus Estimate in the trailing four quarters, with an average of 3.9%. 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 $2.25, indicating growth of 36.4% from the year-ago quarter. We note that the Zacks Consensus Estimate for the to-be-reported quarter has been stable in the last 30 days. Analysts polled by Zacks anticipate revenues of $2.28 billion, up 14.9% 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 has outperformed the industry in the past year, driven by superb earnings history and brand strength. The company’s shares have increased 51.5% while the industry recorded growth of 43.4%.
Factors at Play
PVH boasts a spectacular positive earnings surprise record for 15 consecutive quarters along with six 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. Additionally, currency tailwinds are favoring the company.
Moreover, PVH Corp.’s diversified brand portfolio allows it to stay ahead of its peers to generate above-average industry growth and sustain its position in the current challenging environment. The company’s approach to brand management facilitates each of its brands to develop further through effective marketing strategies, financial control and operating leverage. Based on the strength of many of its brands, particularly Tommy Hilfiger and Calvin Klein, coupled with opportunities related to distribution, we believe that the company is poised for long-term growth.
Going forward, PVH expects total revenues to increase nearly 15% year over year in first-quarter fiscal 2018 while it is anticipated to advance 9% on a constant-currency basis. Brand-wise, revenues are expected to grow 17% (or 12% on a currency-neutral basis) at Calvin Klein, 19% (or 10% on a currency-neutral basis) at Tommy Hilfiger and 2% at Heritage Brands. Adjusted earnings per share, including 20 cents per share gain from foreign currency, are expected to be $2.20-$2.25 compared with $1.65 in the year-ago quarter.
What the Zacks Model Unveils
Our proven model conclusively shows 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 may uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
PVH Corp. has an Earnings ESP of +0.56% with a Zacks Rank #3. This increases the predictive power of ESP, thus, making us confident of an earnings beat.
Other Stocks Poised to Beat Earnings Estimates
Here are some other companies that you may want to consider as our model shows that these, too, have the right combination of elements to post an earnings beat:
Best Buy Company Inc. (BBY - Free Report) has an Earnings ESP of +1.78% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Dollar General Corp. (DG - Free Report) has an Earnings ESP of +1.97% and a Zacks Rank #2.
Ulta Beauty Inc. (ULTA - Free Report) has an Earnings ESP of +0.59% and a Zacks Rank #2.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>