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Here's What to Expect From At Home's (HOME) Q3 Earnings

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At Home Group Inc. (HOME - Free Report) is scheduled to report third-quarter fiscal 2021 results on Dec 1, after the closing bell.

In the last reported quarter, this leading luxury home decor superstore’s adjusted earnings and revenues beat the respective Zacks Consensus Estimate by 6% and 0.1%. On a year-over-year basis, earnings and revenues increased a notable 683% and 50.5%, respectively.

At Home’s earnings topped the consensus mark in two of the last four quarters, met on one occasion and missed on another one, with the average surprise being 12.4%.

Trend in Estimate Revision

For the quarter to be reported, the Zacks Consensus Estimate for earnings per share has been revised 70.3% upward over the past 30 days to 63 cents. This estimated figure indicates an increase from break-even earnings reported a year ago. The consensus mark for revenues is pegged at $470 million, suggesting a 47.5% increase from the year-earlier reported number of $318.7 million.

At Home Group Inc. Price and EPS Surprise

At Home Group Inc. Price and EPS Surprise

At Home Group Inc. price-eps-surprise | At Home Group Inc. Quote

Factors to Note

At Home’s sales and earnings are expected to have increased in the fiscal third quarter, given strong housing market recovery and repair & remodeling activities. Also, a noticeable gain in market share and successful execution of At Home 2.0 strategies are anticipated to help the company post solid results.

Recently, At Home unveiled preliminary results for the third quarter of fiscal 2021 (ended Oct 24, 2020). The company announced preliminary net sales of $470 million for the quarter, depicting 47% year-over-year growth. Its comparable store sales or comps growth was 44% for the quarter versus 2% decline in the year-ago period. In the fiscal second quarter of 2021, compass growth was 42.3%. The company has been gaining broad-based strength across all geographies and categories. Its everyday and seasonal businesses performed exceptionally well during the fiscal third quarter. At Home highlighted that everyday comps were above the company average, with significant growth in wall decor, textiles, accent decor, kitchen and entertaining, as well as home organization.

Also, At Home 2.0 initiatives (as discussed at the beginning of September) that comprise EDLP Plus campaigns, reinventions, loyalty growth and omni-channel offerings have been gaining strength.

Within the insider perks loyalty program, it added 2.4 million members in the fiscal third quarter alone, which resulted in year-over-year growth of 42%. The company now has 8.3 million members in the program.

Overall, it expects fiscal third-quarter GAAP EPS within 58-62 cents, including a 4 cents impact of debt refinancing costs. The company expects to earn more in the fiscal third quarter than fiscal 2020, when it generated pro-forma adjusted EPS of 57 cents. Notably, the company reported breakeven adjusted earnings for third-quarter fiscal 2020. It anticipates the lowest leverage ratio since the initial public offering.

What the Zacks Model Unveils

At Home does not have the right combination of the two key ingredients — a positive Earnings ESP and a Zacks Rank #3 (Hold) or higher — for increasing 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.

Earnings ESP: The company has an Earnings ESP of 0.00%.

Zacks Rank: At Home — which shares space with RH (RH - Free Report) and Tempur Sealy International, Inc. (TPX - Free Report) in the Zacks Retail - Home Furnishings industry — currently carries a Zacks Rank #3.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Peer Release

Williams-Sonoma Inc.’s (WSM - Free Report) third-quarter fiscal 2020 earnings and revenues handily beat the Zacks Consensus Estimate, and significantly increased year over year, courtesy of strength across all brands and accelerated e-commerce growth.

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