We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Factors Likely to Shape Movado Group's (MOV) Earnings in Q3
Read MoreHide Full Article
Movado Group, Inc. (MOV - Free Report) is expected to report third-quarter fiscal 2019 results on Nov 20. In the trailing four quarters, this leading watch designer and distributor recorded an average positive earnings surprise of 82.3%.
Furthermore, the Zacks Consensus Estimate for third-quarter earnings is pegged at $1.13, reflecting approximately 8.7% growth year over year. Notably, the consensus mark remained stable over the last 30 days.
Movado Group Inc. Price, Consensus and EPS Surprise
Let’s see how things are shaping up prior to the earnings announcement.
Things You Need to Know Before 3Q19 Release
Movado Group’s robust brand portfolio, effective marketing strategies and store-expansion efforts bode well for the company. Also, the company is keen on fortifying its presence through acquisitions and license agreements. Recently, it has completed the acquisition of MVMT Watches Inc., which is expected to reinforce Movado Group’s digital and direct-to-consumer capabilities.
In addition, the company remains focused on expanding its e-commerce business, which is expected to generate higher sales and profitability. In this regard, the Olivia Burton brand buyout is worth mentioning. This has been boosting the company’s e-commerce sales and contributing to its overall results. The company remains on track with the integration of Olivia Burton in its infrastructure and global distribution. All these initiatives are expected to drive its top and bottom line performance in the quarter under review.
Moreover, Movado Group posted double-digit growth in sales and operating income in the last reported quarter. On the international front, the company is gaining momentum in Europe and Latin America on the back of designed timepieces and trendy products. Also, management raised its outlook for fiscal 2019, courtesy of Movado Group’s impressive performance in first-half of the year. Net sales are now projected in the range of $660-$675 million, up from $615-625 million guided earlier. Earnings per share are envisioned to be $2.45-$2.55, up from the prior expectation of $2.35-$2.40. Raised guidance for the fiscal year drives optimism for the upcoming quarter as well.
However, higher operating expenses, in the form of increased cost of investments toward marketing and distribution, and rise in other costs to support acquisitions and store expansions might have a short-term impact on the company’s margins.
A Glance at Zacks Model
Our proven model does not conclusively show that Movado Group is likely to beat earnings estimates in third-quarter fiscal 2019. 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.
Movado Group has a Zacks Rank #2 but an Earnings ESP of 0.00% makes our surprise prediction difficult.
Stocks Likely to Beat Earnings Estimates
Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
Nordstrom, Inc. (JWN - Free Report) has an Earnings ESP of +4.52% and a Zacks Rank #2.
Signet Jewelers Limited (SIG - Free Report) has an Earnings ESP of +3.45% and a Zacks Rank #3.
3 Medical Stocks to Buy Now
The greatest discovery in this century of biology is now at the flashpoint between theory and realization. Billions of dollars in research have poured into it. Companies are already generating revenue, and cures for a variety of deadly diseases are in the pipeline.
So are big potential profits for early investors. Zacks has released an updated Special Report that explains this breakthrough and names the best 3 stocks to ride it.
Image: Bigstock
Factors Likely to Shape Movado Group's (MOV) Earnings in Q3
Movado Group, Inc. (MOV - Free Report) is expected to report third-quarter fiscal 2019 results on Nov 20. In the trailing four quarters, this leading watch designer and distributor recorded an average positive earnings surprise of 82.3%.
Furthermore, the Zacks Consensus Estimate for third-quarter earnings is pegged at $1.13, reflecting approximately 8.7% growth year over year. Notably, the consensus mark remained stable over the last 30 days.
Movado Group Inc. Price, Consensus and EPS Surprise
Movado Group Inc. Price, Consensus and EPS Surprise | Movado Group Inc. Quote
Let’s see how things are shaping up prior to the earnings announcement.
Things You Need to Know Before 3Q19 Release
Movado Group’s robust brand portfolio, effective marketing strategies and store-expansion efforts bode well for the company. Also, the company is keen on fortifying its presence through acquisitions and license agreements. Recently, it has completed the acquisition of MVMT Watches Inc., which is expected to reinforce Movado Group’s digital and direct-to-consumer capabilities.
In addition, the company remains focused on expanding its e-commerce business, which is expected to generate higher sales and profitability. In this regard, the Olivia Burton brand buyout is worth mentioning. This has been boosting the company’s e-commerce sales and contributing to its overall results. The company remains on track with the integration of Olivia Burton in its infrastructure and global distribution. All these initiatives are expected to drive its top and bottom line performance in the quarter under review.
Moreover, Movado Group posted double-digit growth in sales and operating income in the last reported quarter. On the international front, the company is gaining momentum in Europe and Latin America on the back of designed timepieces and trendy products. Also, management raised its outlook for fiscal 2019, courtesy of Movado Group’s impressive performance in first-half of the year. Net sales are now projected in the range of $660-$675 million, up from $615-625 million guided earlier. Earnings per share are envisioned to be $2.45-$2.55, up from the prior expectation of $2.35-$2.40. Raised guidance for the fiscal year drives optimism for the upcoming quarter as well.
However, higher operating expenses, in the form of increased cost of investments toward marketing and distribution, and rise in other costs to support acquisitions and store expansions might have a short-term impact on the company’s margins.
A Glance at Zacks Model
Our proven model does not conclusively show that Movado Group is likely to beat earnings estimates in third-quarter fiscal 2019. 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.
Movado Group has a Zacks Rank #2 but an Earnings ESP of 0.00% makes our surprise prediction difficult.
Stocks Likely to Beat Earnings Estimates
Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
American Eagle Outfitters, Inc. (AEO - Free Report) has an Earnings ESP of +2.95% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Nordstrom, Inc. (JWN - Free Report) has an Earnings ESP of +4.52% and a Zacks Rank #2.
Signet Jewelers Limited (SIG - Free Report) has an Earnings ESP of +3.45% and a Zacks Rank #3.
3 Medical Stocks to Buy Now
The greatest discovery in this century of biology is now at the flashpoint between theory and realization. Billions of dollars in research have poured into it. Companies are already generating revenue, and cures for a variety of deadly diseases are in the pipeline.
So are big potential profits for early investors. Zacks has released an updated Special Report that explains this breakthrough and names the best 3 stocks to ride it.
See them today for free >>