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World’s leading apparel retailer, V. F. Corporation (VFC - Analyst Report) is likely to beat expectations when it reports its first-quarter fiscal 2013 results on Apr 26.

Why a Likely Positive Surprise?

Our proven model shows that V. F. Corp. may beat the earnings because it has the right combination of two key components – Positive Earnings ESP (Read: Zacks Earnings ESP: A Better Method) and a Zacks Rank #3.

Zacks ESP: V. F. Corp. currently has an Earnings ESP of +0.92%. This is because the Most Accurate Estimate stands at $2.19, while the Zacks Consensus Estimate is pegged at $2.17.

Zacks Rank #3 (Hold): Note that stocks with Zacks Rank #1, #2 and #3 have significantly higher chances of beating the earnings. The sell rated stocks (#4 and #5) should never be considered going into an earnings announcement.

The combination of V. F. Corp’s Zacks Rank #3 (Hold) and an Earnings ESP of +0.92% makes us confident regarding a positive earnings beat by the company on Apr 26.

What is Driving the Better-than-Expected Earnings?

We believe that the company’s aggressive approach toward the expansion of its international business, particularly in the Asia Pacific, bodes well for future growth. Moreover, V.F Corp.’s policy to acquire businesses that provide strategic opportunities and exit businesses having lower potential has helped it drive growth and improve profitability.

The company has surpassed the Zacks Consensus Estimate in the trailing four quarters with an average surprise of approximately 5.87%.

Other Stocks to Consider

V. F. Corp. is not the only firm looking up this earnings season. The following companies – V. F. Corp’s industry peers – are also likely to beat the earnings in the to-be-reported quarter:

Cabela’s Inc. (CAB - Analyst Report) has an Earnings ESP of +1.70% and carries a Zacks Rank #1 (Strong Buy).

Under Armour Inc. (UA - Snapshot Report) with an Earnings ESP of +33.33% and a Zacks Rank #2 (Buy).

Michael Kors Holdings Limited (KORS - Analyst Report) with an Earnings ESP of +2.70% and a Zacks Rank #3 (Hold).

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