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Revolve Group (RVLV) to Report Q3 Earnings: What's in Store?

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Revolve Group (RVLV - Free Report) is scheduled to report third-quarter 2021 results on Nov 3.

For the third quarter, the Zacks Consensus Estimate for revenues is pegged at $217.2 million, indicating growth of 43.8% from the year-ago reported figure.

Further, the Zacks Consensus Estimate for earnings is pegged at 16 cents per share, suggesting a decline of 40.7% from the prior-year quarter.

The company beat estimates in all the trailing four quarters, delivering an earnings surprise of 92.3%, on average.

Revolve Group, Inc. Price and EPS Surprise

Revolve Group, Inc. Price and EPS Surprise

Revolve Group, Inc. price-eps-surprise | Revolve Group, Inc. Quote

Factors to Consider

Revolve Group’s third-quarter results are likely to benefit from the growing customer base.

Its recently developed FORWARD loyalty program has been gaining strong traction among the existing customers. This is expected to have aided the FORWARD segment in the third quarter.

In addition, strength in operational execution, inventory management and merchandise selection is likely to have continued benefiting the FORWARD segment.

Strength in the company’s REVOLVE brand, which focuses on trend-driven ready-to-wear styles, is expected to have continued aiding the to-be-reported quarter’s performance.

Further, the company’s growing focus on consumer preference amid the coronavirus pandemic is expected to have remained a tailwind.

Growing initiatives for in-person brand marketing are anticipated to have attracted more customers. This is likely to have driven the quarterly performance.

In addition, the recent government stimulus payment in the United States gave a boost to consumer spending in the country. This might have remained a positive for the company.

Apart from this, the growing international business is expected to have continued supporting the to-be-reported quarterly performance.

Yet, uncertainties related to the pandemic are likely to get reflected in the upcoming quarterly results.

Further, a decrease in on-time deliveries from suppliers and an increase in inbound shipping rates might have remained concerns.

What Our Model Says

Our proven model does not conclusively predict an earnings beat for Revolve Group 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. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

It has an Earnings ESP of -16.86% and a Zacks Rank #2, at present.

Stocks to Consider

Here are some stocks that you may consider as our model shows that these have the right combination of elements to beat on earnings this season.

Applied Materials (AMAT - Free Report) has an Earnings ESP of +0.52% and a Zacks Rank of 2, at present.

HP Inc. (HPQ - Free Report) has an Earnings ESP of +1.89% and a Zacks Rank of 1, at present.

NetApp, Inc. (NTAP - Free Report) has an Earnings ESP of +3.70% and a Zacks Rank of 2, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

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