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Here's How Burlington Stores (BURL) is Poised Before Q3 Earnings

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We expect Burlington Stores, Inc. (BURL - Free Report) to register year-over-year growth in its top and bottom-line performances when it releases third-quarter fiscal 2021 results on Nov 23, before market open. The Zacks Consensus Estimate for the quarterly earnings currently stands at $1.27, which shows a significant improvement from 29 cents per share earned in the year-ago quarter. The consensus mark has been stable in the past 30 days.

A glance at its performance in the trailing four quarters shows that it delivered an earnings surprise of 69.2%, on average.

The consensus estimate for quarterly revenues is currently pegged at $2,281 million, indicating an improvement of about 37% from the year-ago period’s reported figure.

Key Factors to Note

Burlington Stores’ quarterly performance is likely to have benefited from the solid execution of its 2.0 strategy, which aims at improving its off-price model. This initiative mainly focuses on three aspects, such as marketing, merchandising and store prototype to drive overall growth. BURL continues to make investments in boosting assortments and merchandising capabilities.

This off-price retailer has been strengthening vendor counts, making technological advancements and focusing on localized assortments for a while now. Gains from strategic efforts coupled with strength across its key merchandise categories are aiding its comp store sales, steadily. On the last earnings call, management had projected the baseline comp sales to increase 10% for the second half of the current fiscal year. All the aforesaid tailwinds are expected to have boosted Burlington Stores’ performance in the quarter under review.

On the flip side, higher freight costs and supply-chain challenges might have been deterrents. Also, BURL continues to witness adjusted selling, general and administrative expenses on increased product-sourcing costs.

What the Zacks Model Unveils

Our proven model predicts an earnings beat for Burlington Stores this reporting cycle. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Burlington Stores, Inc. Price and EPS Surprise

Burlington Stores, Inc. Price and EPS Surprise

Burlington Stores, Inc. price-eps-surprise | Burlington Stores, Inc. Quote

Burlington Stores currently has a Zacks Rank #3 and an Earnings ESP of +5.03%.

More Stocks With Favorable Combination

Here are some other companies you may want to consider as our model shows that these too have the right combination of elements to beat on earnings this season:

Costco (COST - Free Report) currently has an Earnings ESP of +1.00% and a Zacks Rank #1. It is likely to register top and bottom-line growth when it reports first-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for quarterly earnings has moved 2.8% up in the past 30 days to $2.59 per share, suggesting an improvement of 13.1% from the year-ago quarter’s tally.

The Zacks Consensus Estimate for Costco's quarterly revenues is pegged at $49.6 billion, which suggests growth of 14.8% from the figure reported in the prior-year quarter. COST delivered an earnings surprise of 7.7%, on average, in the trailing four quarters. You can see the complete list of today’s Zacks #1 Rank stocks here.

Best Buy (BBY - Free Report) currently has an Earnings ESP of +23.14% and a Zacks Rank #2. BBY is expected to register a top-line increase when it reports third-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for quarterly revenues is pegged at $11.65 billion, which suggests a rise of 0.8% from the figure reported in the prior-year quarter.

The Zacks Consensus Estimate for Best Buy’s quarterly earnings has moved 1% north in the past seven days to $1.93 per share, suggesting a decline of 6.3% from the year-ago reported number. BBY delivered an earnings surprise of 31.9%, on average, in the trailing four quarters.

Kroger (KR - Free Report) currently has an Earnings ESP of +3.70% and a Zacks Rank of 3. It is likely to register a top-line improvement when it reports third-quarter fiscal 2021 numbers. Although the Zacks Consensus Estimate for quarterly earnings has increased 1.5% in the past seven days to 66 cents per share, the same suggests a decline of about 7% from the year-ago period’s tally.

The Zacks Consensus Estimate for Kroger’s quarterly revenues is pegged at $31 billion, suggesting an increase of 4.4% from the figure reported in the prior-year quarter. KR delivered an earnings surprise of 18%, on average, in the trailing four quarters.

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