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What's in Store for 1-800 FLOWERS.COM (FLWS) in Q3 Earnings?

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1-800 FLOWERS.COM, Inc. (FLWS - Free Report) is set to report third-quarter fiscal 2021 results on Apr 29.

Notably, the company expects to achieve total consolidated revenue growth in the range of 45% to 50% compared with the year-ago period. The Zacks Consensus Estimate for fiscal third-quarter revenues is pegged at $404.8 million, indicating growth of 45.2% from the year-ago quarter.

Moreover, the company anticipates achieving adjusted EBITDA between $4 million and $5 million.

Besides, the company expects the bottom line to be between 9 cents and 11 cents per share. The company had incurred loss of 15 cents per share in the year-ago period. The Zacks Consensus Estimate for fiscal third-quarter loss has remained steady at 9 cents per share over the past 30 days, indicating growth of 35.7% from the year-ago quarter.

Notably, the company’s earnings beat the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 20.9%.

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 (including contributions from PMall), which will offset headwinds including the Sunday placement of the key Valentine’s Day holiday, increased year-over-year labor and transportation costs and operating inefficiencies related to the COVID-19 pandemic.

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 from the 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 to-be-reported quarter, 1-800-FLOWERS.COM launched a birthday gift guide featuring trending products and unique offerings from across the company's family of brands, including special floral bouquets, gift baskets, customized décor, and gourmet treats.

In the second quarter of fiscal 2021, revenues from the three business segments, Gourmet Foods and Gift Baskets, Consumer Floral and BloomNet were up 15.9%, 163.9% and 32.4%, 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.

In the fiscal third quarter, BloomNet teamed up with Card Isle, the leading provider of print-on-demand personalized greeting cards, to create opportunities for retail members to take advantage of consumer demand for printed greeting cards. According to an Ipsos survey cited by the company, 82% of Americans choose printed greeting cards over digital greeting cards.

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.

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. But that’s not the case here.

1-800-FLOWERS.COM has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are a few 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:

Atlassian Corporation PLC (TEAM - Free Report) has an Earnings ESP of +24.48% and is Zacks #2 Ranked. You can see the complete list of today’s Zacks #1 Rank stocks here.

CDW Corporation (CDW - Free Report) has an Earnings ESP of +0.51% and a Zacks Rank #2.

Etsy, Inc. (ETSY - Free Report) has an Earnings ESP of +1.19% and a Zacks Rank #3.

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