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National Vision (EYE) to Report Q2 Earnings: What's in Store?

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National Vision Holdings, Inc. (EYE - Free Report) is scheduled to report second-quarter 2021 results on Aug 12, before market open.

In the last reported quarter, the company’s earnings of 48 cents surpassed the Zacks Consensus Estimate by 45.45%. Over the trailing four quarters, its earnings outperformed the Zacks Consensus Estimate on all occasions, the average beat being 106.84%.

Let’s see how things have shaped up prior to this announcement.

Factors at Play

National Vision is expected to report sequentially better results for the second quarter on gradual reopening of stores and return toward more normal operations. The company had projected a strong second quarter of 2021 courtesy of favorable year-over-year comparisons following a dull show in the year-ago period.  

National Vision’s business has been gradually rebounding,  attributable to pent-up demand from its patients and customers. Further, the company is likely to have benefited in Q2 from high demand for its low-cost eye care and eyewear offerings amid the difficult economic phase.

In particular, we are optimistic about the continued momentum in Eyeglass World. Per the company, currently Eyeglass World has really found its momentum, showing consistently strong uptick on a monthly basis. This is likely to have strongly contributed to Q2 performance.

Further, the company’s transition of its five additional Walmart Vision Centers in 2020, which became operative in the beginning of 2021,are expected to come up with positive Q2 results.

The company’s contact lens revenue growth is expected to have remained impressive on lesser impact of store closures on contact lens customer transactions. The contact lens category is likely to have continued to see growth in average ticket, resulting from higher adoption of newer technology lenses at increased prices.

The Estimate Picture

For second-quarter 2021, the Zacks Consensus Estimate for total revenues of $494.7 million implies 90.3% improvement from the prior-year reported figure.

The consensus estimate for earnings per share is pegged at 23 cents, implying an improvement of 156.1% from the prior-year reported figure.

What Our Model Suggests

Per our proven model, a stock with the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates. This is however not the case as you can see below.

Earnings ESP: National Vision has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company currently carries a Zacks Rank #3.

Stocks Worth a Look

Here are a few medical stocks worth considering as these have the right combination of elements to beat on earnings this reporting cycle.

Schrodinger, Inc. (SDGR - Free Report) has an Earnings ESP of +76.14% and a Zacks Rank #1, currently. The stock is slated to release second-quarter 2021 results on Aug 12.  You can see the complete list of today’s Zacks #1 Rank stocks here.

Calliditas Therapeutics AB (CALT - Free Report) has an Earnings ESP of +12.50% and a Zacks Rank of 2, at present. The stock is slated to release second-quarter 2021 results on Aug 12.

Larimar Therapeutics, Inc. (LRMR - Free Report) has an Earnings ESP of +4.11% and is a Zacks #2 Ranked stock. The company is slated to release its second-quarter 2021 results on Aug 10.