Rocky Brands, Inc. ( RCKY Quick Quote RCKY - Free Report) is likely to witness year-over-year growth in the top and bottom lines when it reports first-quarter 2021 numbers. Incidentally, the Zacks Consensus Estimate for first-quarter earnings has increased 5.4% in the past 30 days to 59 cents and suggests growth of more than 118% from the year-ago quarter’s tally. Moreover, the consensus mark for quarterly revenues is pegged at $71.3 million, indicating a 27.9% rise from the prior-year quarter’s reported figure. We note that this footwear and apparel designer and manufacturer has a trailing four-quarter earnings surprise of 120.9%, on average. Key Factors to Note
Rocky Brands’ first-quarter 2021 performance has most likely benefited from strength in brands, improved fulfillment capabilities and advantages of its internal manufacturing. Solid execution of its business strategies amid the pandemic might have fueled performance. Moreover, the company has been enhancing the functionality of the branded desktop and mobile sites, as well as expanding its direct-to-consumer efforts. These endeavors are helping it cash in on the evolving buying behavior.
Management further remains encouraged about the recently-closed buyout of the performance and lifestyle footwear business of Honeywell International. This includes The Original Muck Boot Company and XTRATUF footwear brands. The acquisition offers significant growth opportunities to the company and provide it an entry into new market segments like commercial fishing, outdoor, camping and recreational fishing. This buyout also looks to reinforce wholesale relationships for Rocky Brands via leveraging improved fulfillment capabilities and innovative product collections. However, any deleverage in SG&A might show on margins. Additionally, pandemic-related uncertainties cannot be ruled out. What the Zacks Model Unveils
Our proven model predicts an earnings beat for Rocky Brands 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.
Rocky Brands has a Zacks Rank #1 and an Earnings ESP of +5.09%.
More Stocks With Favorable Combinations
Here are a few other companies worth considering from the same sector as our model shows that these also have the right combination of elements to beat on earnings this time around.
Ralph Lauren ( RL Quick Quote RL - Free Report) has an Earnings ESP of +31.32% and a Zacks Rank of 1 at present. You can see . the complete list of today’s Zacks #1 Rank stocks here Steven Madden ( SHOO Quick Quote SHOO - Free Report) has an Earnings ESP of +5.1% and a Zacks Rank of 3, currently. NIKE ( NKE Quick Quote NKE - Free Report) has an Earnings ESP of +4.49% and a Zacks Rank #3, presently. Zacks Top 10 Stocks for 2021
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