Deckers Outdoor Corp. (DECK - Free Report) , a leading designer, producer and brand manager of innovative, niche footwear and accessories, is slated to report first-quarter fiscal 2017 results on Jul 28. The question lingering in investors’ minds now is, whether the company will be able to deliver a positive earnings surprise in the quarter to be reported. In the trailing four quarters, it outperformed the Zacks Consensus Estimate by an average of 23.5%. Let’s see how things are shaping up for this announcement.
Unlikely to Beat Estimates
Our proven model does not conclusively show that Deckers is likely to beat estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1, 2 or 3 for this to happen. Deckers has an Earnings ESP of -2.94% as the Most Accurate estimate stands at a loss of $2.10, while the Zacks Consensus Estimate is pegged at a loss of $2.04. Moreover, the company carries a Zacks Rank #5 (Strong Sell). We caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Factors Influencing this Quarter
Deckers’ lackluster outlook for the first quarter and fiscal 2017 raises concerns. The company projects net sales to decline in the range of 20–25% in the first quarter and to be flat to down 3% during fiscal 2017. Management also expects a loss of approximately $2.10–$2.20 per share for the quarter to be reported.
However, in an effort to bring itself back on the growth trajectory, the company announced a restructuring plan that focuses on realigning its brands into two groups, along with optimization of its store fleet. The company is also concentrating on opening smaller concept omni-channel outlets and developing its eCommerce portal.
Stocks Poised 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:
Big Lots Inc. (BIG - Free Report) has an Earnings ESP of +4.35% and a Zacks Rank #2 (Buy).
Cabela's Incorporated has an Earnings ESP of +4.92% and a Zacks Rank #2.
Expedia Inc. (EXPE - Free Report) has an Earnings ESP of +6.82% and a Zacks Rank #3 (Hold).
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Deckers Outdoor Corp. (DECK - Free Report) , a leading designer, producer and brand manager of innovative, niche footwear and accessories, is slated to report first-quarter fiscal 2017 results on Jul 28. The question lingering in investors’ minds now is, whether the company will be able to deliver a positive earnings surprise in the quarter to be reported. In the trailing four quarters, it outperformed the Zacks Consensus Estimate by an average of 23.5%. Let’s see how things are shaping up for this announcement.
Unlikely to Beat Estimates
Our proven model does not conclusively show that Deckers is likely to beat estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1, 2 or 3 for this to happen. Deckers has an Earnings ESP of -2.94% as the Most Accurate estimate stands at a loss of $2.10, while the Zacks Consensus Estimate is pegged at a loss of $2.04. Moreover, the company carries a Zacks Rank #5 (Strong Sell). We caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Factors Influencing this Quarter
Deckers’ lackluster outlook for the first quarter and fiscal 2017 raises concerns. The company projects net sales to decline in the range of 20–25% in the first quarter and to be flat to down 3% during fiscal 2017. Management also expects a loss of approximately $2.10–$2.20 per share for the quarter to be reported.
However, in an effort to bring itself back on the growth trajectory, the company announced a restructuring plan that focuses on realigning its brands into two groups, along with optimization of its store fleet. The company is also concentrating on opening smaller concept omni-channel outlets and developing its eCommerce portal.
Stocks Poised 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:
Big Lots Inc. (BIG - Free Report) has an Earnings ESP of +4.35% and a Zacks Rank #2 (Buy).
Cabela's Incorporated has an Earnings ESP of +4.92% and a Zacks Rank #2.
Expedia Inc. (EXPE - Free Report) has an Earnings ESP of +6.82% and a Zacks Rank #3 (Hold).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>
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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