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YETI Holdings (YETI) to Report Q3 Earnings: What's in Store?

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YETI Holdings, Inc. (YETI - Free Report) is scheduled to report third-quarter fiscal 2020 results on Nov 5, before the opening bell. In the last-reported quarter, the company delivered an earnings surprise of 173.3%. Moreover, it beat the Zacks Consensus Estimate in the trailing four quarters, the average beat being 59.5%.

How Are Estimates Placed?

The Zacks Consensus Estimate for fiscal third-quarter earnings is pegged at 37 cents per share, indicating growth of 23.3% from 30 cents reported in the year-ago quarter.

For revenues, the consensus mark is pegged at $264.7 million, indicating an increase of 15.5% from the year-ago figure.

Let's take a look at how things have shaped up in the quarter.

YETI Holdings, Inc. Price and EPS Surprise

 

YETI Holdings, Inc. Price and EPS Surprise

YETI Holdings, Inc. price-eps-surprise | YETI Holdings, Inc. Quote

Factors at Play

YETI Holdings’ fiscal third-quarter performance is likely to have reflected solid segmental and e-commerce business performance. Also, initiatives like product innovation and expansion strategies along with adoption of its latest distribution channel (Lowe's) are likely to have boosted the third-quarter top line. This along with cost-management efforts and adaptation of a balanced omnichannel strategy across its portfolios are likely to get reflected in to-be-reported quarter’s results.

However, the coronavirus pandemic is expected to have materially affected YETI Holdings’ performance in the fiscal third quarter owing to reduced traffic in the wake of retail store closures.

What Our Model Says

Our proven model predicts an earnings beat for YETI Holdings this time around. A stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to beat estimates.

Earnings ESP: YETI Holdings has an Earnings ESP of +5.09%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: YETI Holdings currently has a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks With Favorable Combination

Here are some stocks from the Zacks Consumer Discretionary space that investors may consider, as our model shows that these have the right combination of elements to deliver an earnings beat this time around.

Electronic Arts Inc. (EA - Free Report) has an Earnings ESP of +211.11% and a Zacks Rank #3.

Choice Hotels International, Inc. (CHH - Free Report) has an Earnings ESP of +6.19% and a Zacks Rank #3.

Planet Fitness, Inc. (PLNT - Free Report) has an Earnings ESP of +7.14% and a Zacks Rank #3.

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