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Wolverine (WWW) Queued Up for Q3 Earnings: What to Expect

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Wolverine World Wide, Inc. (WWW - Free Report) is expected to report year-over-year increases in its top and the bottom line when it releases third-quarter 2021 earnings on Nov 10, before market open. The Zacks Consensus Estimate for the quarterly earnings has been stable in the past 30 days at 61 cents, which indicates a significant improvement from 35 cents earned in the year-earlier quarter.

The consensus estimate of $654.1 million for quarterly revenues suggests growth of about 33% from the prior-year quarter’s tally.

In the trailing four quarters, this Rockford, MI-based company delivered an earnings surprise of 23%, on average.

Key Factors to Note

Wolverine’s commitment toward product innovation as well as investments in own stores and digitization to directly reach customers are likely to have favorably impacted the third-quarter performance. Evidently, the company’s direct-to-consumer channels have been strong for a while now. The company has been leveraging higher digital marketing investments for a while to boost traffic and is deepening its focus on better merchandising to optimize conversion.

The company’s major brands like Merrell and Saucony have been standing out for quite some time now. Steady product innovations and launches are added positives. We note that Wolverine’s international business, which comprises a widespread network of global partners, continues to be impressive.

On the flip side, higher adjusted selling, general and administrative expenses persist. Also, steep air-freight and logistics costs due to COVID-related supply-chain constraints remain a headwind.

What Our Zacks Model Says

Our proven model doesn’t conclusively predict an earnings beat for Wolverine 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.

Wolverine World Wide, Inc. Price and EPS Surprise

Wolverine World Wide, Inc. Price and EPS Surprise

Wolverine World Wide, Inc. price-eps-surprise | Wolverine World Wide, Inc. Quote

Although Wolverine currently has a Zacks Rank #3, its Earnings ESP of -1.64% leaves surprise prediction inconclusive.

Stocks With Favorable Combinations

Here are a few companies you may want to consider as our model shows that these have the right combination to beat on earnings this season:

PVH Corp. (PVH - Free Report) has an Earnings ESP of +12.38% and a Zacks Rank of 2, currently. You can see the complete list of today’s Zacks #1 Rank stocks here.

Costco (COST - Free Report) currently has an Earnings ESP of +1.00% and a Zacks Rank #2.

DICK'S Sporting Goods (DKS - Free Report) has an Earnings ESP of +10.27% and a Zacks Rank of 3 at present.