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What's in Store for 1-800 FLOWERS.COM (FLWS) in Q2 Earnings?

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1-800 FLOWERS.COM, Inc. (FLWS - Free Report) is set to report second-quarter fiscal 2021 results on Jan 28.

Notably, the company expects to achieve total consolidated revenue growth for its second fiscal quarter in a range of 22% to 26% compared with the year-ago period. The Zacks Consensus Estimate for fiscal second-quarter revenues is pegged at $750.5 million, indicating growth of 23.9% from the year-ago quarter.

Moreover, the company anticipates achieving adjusted EBITDA and EPS growth in the range of 18% to 23% for the quarter compared with the year-ago period. The Zacks Consensus Estimate for fiscal second-quarter earnings has moved up by a penny over the past 30 days to $1.41 per share, up 25.8% from the year-ago quarter.

Notably, the company’s earnings beat the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 16.11%.

1800 FLOWERS.COM, Inc. Price and EPS Surprise

1800 FLOWERS.COM, Inc. Price and EPS Surprise

1800 FLOWERS.COM, Inc. price-eps-surprise | 1800 FLOWERS.COM, Inc. Quote

Factors to Note

In the to-be-reported quarter, the company expects strong e-commerce revenue growth of more than 40% (including contributions from PMall) offset by lower wholesale orders and reduced retail revenues, reflecting the closure of Harry & David retail stores in fiscal 2020 due to the coronavirus outbreak.

1-800 FLOWERS.COM’s top line is expected to have benefited from the consistent performance of its floral products and garden merchandise business along with the anticipated contributions of the recent acquisition of PersonalizationMall.com.

Moreover, coronavirus-led social distancing norms are expected to have boosted the company’s customer growth during the quarter.

In the first quarter of fiscal 2021, revenues from the three business segments, Gourmet Foods and Gift Baskets, Consumer Floral and BloomNet were up 26.3%, 78% and 28.7%, respectively compared with the prior-year period as customers increasingly turned to the company’s brands and expanded product offerings to help them remain connected amid coronavirus-led social distancing norms.

Moreover, an expanded range of products and services, including hard goods such as vases and glassware and cut flowers and greenery is likely to have contributed to BloomNet segment’s top line in the to-be-reported quarter.

However, a tight labor market and rising labor costs, increased costs from third-party shipping vendors, tariffs and tariff uncertainty and rising transportation costs are expected to have weighed on margins.

Key Developments in Q2

On Oct 28, 1-800-FLOWERS.COM announced the launch of a multi-brand corporate gifting website, making it easier for businesses to engage employees, customers, and clients. Business customers can seamlessly access the extensive offerings from across the 1-800-FLOWERS.COM, Inc. family of brands, including Harry & David, Cheryl's Cookies, 1-800-Flowers.com, The Popcorn Factory, Wolferman's Bakery and more.

What Our Model Says

According to the Zacks model, the combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.

1-800-FLOWERS.COM has an Earnings ESP of +2.13% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Other Stocks to Consider

Here are a few more companies you may want to consider, as our model shows that these also have the right combination of elements to post an earnings beat in their upcoming releases:

Mattel, Inc. (MAT - Free Report) has an Earnings ESP of +1.24% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Comcast Corporation (CMCSA - Free Report) has an Earnings ESP of +0.32% and is Zacks #3 Ranked.

Rogers Communication, Inc. (RCI - Free Report) has an Earnings ESP of +6.56% and carries a Zacks Rank of 3, currently.

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