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Stitch Fix (SFIX) to Post Q2 Earnings: What Awaits the Stock?
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Stitch Fix, Inc. (SFIX - Free Report) is likely to register top-line growth when it reports second-quarter fiscal 2021 numbers on Mar 8, after the closing bell. The Zacks Consensus Estimate for revenues is pegged at $511.6 million, which indicates an increase of 13.3% from the prior-year quarter’s reported figure. Markedly, the company witnessed top-line growth of 10% in the last reported quarter.
However, the company’s bottom line is expected to register a decline. The Zacks Consensus Estimate is currently pegged at a loss of 22 cents per share for the second quarter. The consensus mark, which has remained stable in the past 30 days, suggests deterioration from earnings of 11 cents per share reported in the prior-year quarter. We note that Stitch Fix delivered an earnings surprise of 152.9% in the last reported quarter.
Key Aspects to Note
Stitch Fix’s top line is expected to gain from continued growth in the company’s active client base. Markedly, the company has been witnessing growth in both existing and new clients. Backed by such expectations, management had provided an encouraging top-line view for the second quarter, during its last earnings call. It projected revenues in the range of $506-$515 million, reflecting an increase of 12-14% year on year. Moreover, the top-line view is based on anticipations that the company’s fulfillment centers will remain operational amid the pandemic.
Apart from these, the company’s efforts to boost assortments and well-chalked customer engagement strategies are likely to have supported revenue growth in the to-be-reported quarter. Also, investments to boost digital features and the ‘direct buy’ facility have been encouraging.
However, we cannot ignore the concerns surrounding rising expenses that might have put some pressure on margins. The company has been incurring higher shipping costs along with increased marketing and other variable expenses.
Stitch Fix, Inc. Price, Consensus and EPS Surprise
Our proven model doesn’t conclusively predict an earnings beat for Stitch Fix 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.
Stitch Fix currently carries a Zacks Rank #2 and an Earnings ESP of 0.00%.
Stocks Poised to Beat 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.
DICKS Sporting Goods, Inc. (DKS - Free Report) currently has an Earnings ESP of +3.70% and a Zacks Rank #2.
Dollar General Corporation (DG - Free Report) has an Earnings ESP of +1.23% and a Zacks Rank #3, at present.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for regular investors who make the right trades early.
Image: Bigstock
Stitch Fix (SFIX) to Post Q2 Earnings: What Awaits the Stock?
Stitch Fix, Inc. (SFIX - Free Report) is likely to register top-line growth when it reports second-quarter fiscal 2021 numbers on Mar 8, after the closing bell. The Zacks Consensus Estimate for revenues is pegged at $511.6 million, which indicates an increase of 13.3% from the prior-year quarter’s reported figure. Markedly, the company witnessed top-line growth of 10% in the last reported quarter.
However, the company’s bottom line is expected to register a decline. The Zacks Consensus Estimate is currently pegged at a loss of 22 cents per share for the second quarter. The consensus mark, which has remained stable in the past 30 days, suggests deterioration from earnings of 11 cents per share reported in the prior-year quarter. We note that Stitch Fix delivered an earnings surprise of 152.9% in the last reported quarter.
Key Aspects to Note
Stitch Fix’s top line is expected to gain from continued growth in the company’s active client base. Markedly, the company has been witnessing growth in both existing and new clients. Backed by such expectations, management had provided an encouraging top-line view for the second quarter, during its last earnings call. It projected revenues in the range of $506-$515 million, reflecting an increase of 12-14% year on year. Moreover, the top-line view is based on anticipations that the company’s fulfillment centers will remain operational amid the pandemic.
Apart from these, the company’s efforts to boost assortments and well-chalked customer engagement strategies are likely to have supported revenue growth in the to-be-reported quarter. Also, investments to boost digital features and the ‘direct buy’ facility have been encouraging.
However, we cannot ignore the concerns surrounding rising expenses that might have put some pressure on margins. The company has been incurring higher shipping costs along with increased marketing and other variable expenses.
Stitch Fix, Inc. Price, Consensus and EPS Surprise
Stitch Fix, Inc. price-consensus-eps-surprise-chart | Stitch Fix, Inc. Quote
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for Stitch Fix 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.
Stitch Fix currently carries a Zacks Rank #2 and an Earnings ESP of 0.00%.
Stocks Poised to Beat 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.
The Childrens Place, Inc. (PLCE - Free Report) currently has an Earnings ESP of +1.94% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
DICKS Sporting Goods, Inc. (DKS - Free Report) currently has an Earnings ESP of +3.70% and a Zacks Rank #2.
Dollar General Corporation (DG - Free Report) has an Earnings ESP of +1.23% and a Zacks Rank #3, at present.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>