Guess?, Inc. (GES - Free Report) is likely to register top-and bottom-line improvement when it reports first-quarter fiscal 2022 results on May 27. The Zacks Consensus Estimate for the bottom line has narrowed from a loss of 27 cents per share to a loss of 20 cents in the past seven days. The projection shows significant improvement from a loss of $1.81 per share reported in the year-ago quarter. We note that Guess?’s bottom line has outperformed the Zacks Consensus Estimate by a significant margin in the trailing four quarters, on average.
The consensus estimate for quarterly revenues is pegged at approximately $495.4 million, which calls for a surge of 90.4% from the prior-year quarter’s reported number.
Key Factors to Note
Guess? has been benefiting from its solid digital efforts. In this regard, the company is on track with its digital-first initiative and investing in brand building through social media platforms. Further, it has been undertaking efforts such as better data capturing, improved customer profiling, personalized marketing and relationship management to improve digital platform. Moreover, Guess?’s focus on its core strategies like organization and culture, functional capacities, brand relevance with three main consumer groups (heritage, Millennials and Generation Z customers), customer focus, product brilliance and international footprint bodes well. Apart from this, the company is gaining from its saving efforts amid escalated costs related to e-commerce growth.
Toward the end of third-quarter fiscal 2021, Guess? had begun a new round of government-mandated temporary store closures due to the pandemic. In this regard, nearly 77% of the company’s stores were open as of Mar 27, 2021. Markedly, the company offered revenue growth guidance for the to-be-reported quarter from the pre-pandemic level (fiscal 2020) to offer a relatively normalized comparison. Guess? anticipates first-quarter fiscal 2022 net revenues decline of high single digits from fiscal 2020 level, owing to the pandemic-induced store closures and reduced traffic. Well, these factors are likely to have had been countered by strength in the company’s global e-commerce business and favorable timing shift of European shipments from the fiscal fourth quarter to the first quarter.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for Guess? this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Guess? has a Zacks Rank #1 and an Earnings ESP of +20.00%.
More Stocks With Favorable Combinations
Here are some more companies that you may want to consider as our model shows that these also have the right combination of elements to post an earnings beat.
Pool Corporation (POOL - Free Report) currently has an Earnings ESP of +2.54% and carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
e.l.f. Beauty, Inc. (ELF - Free Report) currently has an Earnings ESP of +17.86% and carries a Zacks Rank #3.
Ulta Beauty, Inc. (ULTA - Free Report) currently has an Earnings ESP of +10.22% and carries a Zacks Rank #3.
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It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
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Guess?, Inc. (GES - Free Report) is likely to register top-and bottom-line improvement when it reports first-quarter fiscal 2022 results on May 27. The Zacks Consensus Estimate for the bottom line has narrowed from a loss of 27 cents per share to a loss of 20 cents in the past seven days. The projection shows significant improvement from a loss of $1.81 per share reported in the year-ago quarter. We note that Guess?’s bottom line has outperformed the Zacks Consensus Estimate by a significant margin in the trailing four quarters, on average.
The consensus estimate for quarterly revenues is pegged at approximately $495.4 million, which calls for a surge of 90.4% from the prior-year quarter’s reported number.
Key Factors to Note
Guess? has been benefiting from its solid digital efforts. In this regard, the company is on track with its digital-first initiative and investing in brand building through social media platforms. Further, it has been undertaking efforts such as better data capturing, improved customer profiling, personalized marketing and relationship management to improve digital platform. Moreover, Guess?’s focus on its core strategies like organization and culture, functional capacities, brand relevance with three main consumer groups (heritage, Millennials and Generation Z customers), customer focus, product brilliance and international footprint bodes well. Apart from this, the company is gaining from its saving efforts amid escalated costs related to e-commerce growth.
Toward the end of third-quarter fiscal 2021, Guess? had begun a new round of government-mandated temporary store closures due to the pandemic. In this regard, nearly 77% of the company’s stores were open as of Mar 27, 2021. Markedly, the company offered revenue growth guidance for the to-be-reported quarter from the pre-pandemic level (fiscal 2020) to offer a relatively normalized comparison. Guess? anticipates first-quarter fiscal 2022 net revenues decline of high single digits from fiscal 2020 level, owing to the pandemic-induced store closures and reduced traffic. Well, these factors are likely to have had been countered by strength in the company’s global e-commerce business and favorable timing shift of European shipments from the fiscal fourth quarter to the first quarter.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for Guess? this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Guess? has a Zacks Rank #1 and an Earnings ESP of +20.00%.
More Stocks With Favorable Combinations
Here are some more companies that you may want to consider as our model shows that these also have the right combination of elements to post an earnings beat.
Pool Corporation (POOL - Free Report) currently has an Earnings ESP of +2.54% and carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
e.l.f. Beauty, Inc. (ELF - Free Report) currently has an Earnings ESP of +17.86% and carries a Zacks Rank #3.
Ulta Beauty, Inc. (ULTA - Free Report) currently has an Earnings ESP of +10.22% and carries a Zacks Rank #3.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How to Profit from Trillions on Spending for Infrastructure >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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