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Boot Barn (BOOT) to Post Q2 Earnings: Is a Beat in the Cards?

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Boot Barn Holdings (BOOT - Free Report) is scheduled to release its second-quarter fiscal 2019 results on Oct 25. The company has an average trailing four-quarter beat of 31.8%. In the last reported quarter, it delivered a positive earnings surprise of 25%. Consequently, investors are keeping their fingers crossed and hoping that the company surpasses earnings estimates this time as well.
 
How are Estimates Faring?
 
The Zacks Consensus Estimate for second-quarter earnings is pegged at 9 cents compared with 4 cents in the year-ago quarter. We note that the consensus estimate moved up by a penny over the last 30 days. Analysts polled by Zacks expects revenues of $161.7 million, showing an improvement of approximately 13% from the year-ago quarter number.
 
Let’s delve deeper and find out the factors impacting the results.
 
Boot Barn Holdings, Inc. Price and EPS Surprise
 
Boot Barn is registering solid top-line growth and improved comparable sales (comps) performance. Notably, this Irvine-based company witnessed comps growth of 11.6% in the first quarter marking its fifth consecutive quarter of increase. Evidently, all products delivered positive sales, specifically work boots and work apparel, men's and ladies’ western apparel and western boots. For the to-be-reported quarter, the Zacks Consensus Estimate for comps is pegged at 8.3%.
 
The company is also making efforts to strengthen its omni-channel capabilities and improving private brand offering for its online customers. It is trying to reduce low margin items, lower drop ship fees and other overhead costs as well. Additionally, Boot Barn is banking on store expansion initiatives to expand its customer base and drive its top line further.
 
What Does the Zacks Model Say?
 
Our proven model conclusively shows that Boot Barn is likely to beat estimates in second-quarter fiscal 2019. That is because 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.
 
Boot Barn has an Earnings ESP of +3.70% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
 
Stocks With Favorable Combination
 
Here are some other top-ranked companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat:
 
Best Buy (BBY - Free Report) , a Zacks #2 Ranked stock, has an Earnings ESP of +6.34%. 
 
Burlington Stores (BURL - Free Report) has an Earnings ESP of +2.12% and a Zacks Rank #2.
 
Dollar General (DG - Free Report) , a Zacks #2 Ranked stock, has an Earnings ESP of +2.45%.
 
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