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Camping World (CWH) to Report Q2 Earnings: What's in Store?

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Camping World Holdings, Inc. (CWH - Free Report) is scheduled to report second-quarter 2021 results on Aug 3, before market open.

In the last reported quarter, the company’s earnings and revenues beat the Zacks Consensus Estimate by 159.3% and 22.6%, respectively. Also, earnings and revenues increased significantly from the year-ago period. Markedly, the company beat earnings expectations in the trailing five quarters, the average being 40%. The outperformance was led by solid financial performance and the company’s continued strength in the business model.

Trend in Estimate Revision

For the quarter to be reported, the Zacks Consensus Estimate for earnings per share has moved 0.4% down to $2.22 over the past 30 days. The estimated figure indicates an increase of 37% from $1.62 per share reported in the year-ago quarter. The consensus mark for revenues is pegged at $2.04 billion, suggesting 27.2% growth from the year-ago reported figure of $1.61 billion.

Factors to Consider

The company’s earnings and revenues for second-quarter 2021 are expected to improve on a year-over-year basis owing to the operational initiatives and the company’s overall performance along with website activity across all its brands. During first-quarter 2021, website user sessions grew 50% year over year to 48 million sessions.

Moreover, the company’s recently-launched initiative to buy online and pick up from store is likely to have driven revenues, improved delivery time and reduced shipping costs, thereby boosting margins in the quarter to be reported.

Furthermore, Camping World is likely to have witnessed accelerated growth in Finance and insurance, New vehicles and Used vehicles revenues. The Zacks Consensus Estimate for revenues for Finance and insurance, New vehicles and Used vehicles is pegged at $189 million, $1,173 million and $363 million, suggesting growth of 28.6%, 30.6% and 32% year over year, respectively. Also, the Zacks Consensus Estimate for Products service and other revenues is pegged at $293, indicating an improvement of 26.8% year over year.

What Our Model Indicates

Our proven model does not conclusively predict an earnings beat for Camping World this time around. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. Unfortunately, that is not the case here, as you will see below.

Earnings ESP: Earnings ESP for Camping World is -0.54%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company currently has a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks With Favorable Combination

Here are some companies in the Zacks Consumer Discretionary sector, which according to our model, have the right combination of elements to post an earnings beat in their respective quarters to be reported.

Red Rock Resorts, Inc. (RRR - Free Report) has an Earnings ESP of +22.14% and a Zacks Rank #1.

Penn National Gaming, Inc. (PENN - Free Report) has an Earnings ESP of + 26.32% and a Zacks Rank #2.

Hyatt Hotels Corporation (H - Free Report) has an Earnings ESP of +12.24% and a Zacks Rank #3.