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YETI Gears Up to Report Q2 Earnings: What's in the Offing?

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YETI Holdings, Inc. (YETI - Free Report) is scheduled to report second-quarter fiscal 2021 results on Aug 5, before market open. In the last reported quarter, the company’s earnings beat the Zacks Consensus Estimate by 72.7%.

Trend in Estimate Revision

For the quarter to be reported, the Zacks Consensus Estimate for earnings per share has remained flat at 56 cents over the past 30 days. The estimated figure indicates an increase of 36.6% from 41 cents per share reported in the year-ago quarter. The consensus mark for revenues is pegged at $328.6 million, suggesting 33.1% growth from the year-ago reported figure of $246.9 million.

Factors to Consider

The company’s earnings and revenues for second-quarter fiscal 2021 are expected to improve on a year-over-year basis, primarily driven by robust demand across all brands. During first-quarter fiscal 2021, YETI’s net sales grew 42% year over year.

Moreover, the company is regularly investing in global products and channel expansion, innovative marketing, and growing digital capabilities, including enhanced data analytics, thereby boosting the overall performance for the quarter to be reported.

Furthermore, YETI is likely to have witnessed accelerated growth in Direct-to-consumer (“DTC”) channel net sales, owing to the strong performance by Coolers & Equipment and Drinkware. During first-quarter fiscal 2021, YETI’s DTC channel net sales grew 59% year over year. Also, the Zacks Consensus Estimate for net sales by channel DTC is pegged at $165 million, indicating a sequential improvement of 30.1%.

Also, for second-quarter fiscal 2021, the company’s margin is likely to have benefited from a favorable shift to DTC channel, product cost improvements, lower inbound freight and lower tariffs.

YETI Holdings, Inc. Price and EPS Surprise

YETI Holdings, Inc. Price and EPS Surprise

YETI Holdings, Inc. price-eps-surprise | YETI Holdings, Inc. Quote

What Our Model Indicates

Our proven model does not conclusively predict an earnings beat for YETI 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 YETI is -1.79%. 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.

Penn National Gaming, Inc. (PENN - Free Report) has an Earnings ESP of + 26.32% and a Zacks Rank #1.

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

Accel Entertainment, Inc. (ACEL - Free Report) has an Earnings ESP of +4.55% and a Zacks Rank #3.