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Hibbett (HIBB) to Post Q4 Earnings: What's in the Offing?

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Hibbett, Inc. (HIBB - Free Report) is likely to witness a year-over-year increase in the top line when it reports fourth-quarter fiscal 2022 earnings on Mar 4. The Zacks Consensus Estimate for revenues is pegged at $383 million, suggesting a rise of 1.7% from the prior-year quarter’s reported figure.

However, the Zacks Consensus Estimate for earnings has tumbled 22.4% over the past seven days to $1.25 per share, indicating a decline of 10.7% from the figure reported in the prior-year period. Hibbett, which engages in the retail of athletic-inspired fashion products, has a trailing four-quarter earnings surprise of 63.1%, on average. HIBB delivered an earnings surprise of 7.7% in the last reported quarter.

Hibbett, Inc. Price, Consensus and EPS Surprise

Hibbett, Inc. Price, Consensus and EPS Surprise

Hibbett, Inc. price-consensus-eps-surprise-chart | Hibbett, Inc. Quote

Key Factors to Consider

Hibbett has been benefiting from its progress on the e-commerce front and the expansion of the loyalty program. The company remains focused on increasing the customer base by connecting with more customers through e-commerce and selective store expansion. Further, it has been leveraging its omnichannel capabilities, such as home delivery, buy online and pick-up in store, reserve online and pick-up in store, buy online ship to store facility, same-day delivery and mobile app services, to fulfill online orders and serve customers.  That said, high freight costs due to supply-chain disruptions and elevated store occupancy expenses have been a concern for Hibbett.

Update on Q4

The company recently provided insights into its fourth-quarter fiscal 2022 results. HIBB’s fourth-quarter show was adversely impacted by ongoing supply-chain disruptions, cost inflation and the resurgence of COVID-19 cases, which led to lower traffic and transaction counts in the latter half of the quarter. However, its enhanced omnichannel capabilities, improved merchandise assortments, distribution facilities and store support centers are likely to have provided some support.

For the fourth quarter of fiscal 2022, net sales rose 1.7% year over year to $383.3 million. Net sales advanced 22.5% on a two-year basis.  Despite solid sales during the holiday season, supply-chain issues (particularly in the footwear category) and a rise in Omicron cases hurt traffic and transactions in the latter half of the quarter. Comparable sales (comps) fell 1%. However, comps advanced 20.7% on a two-year basis. Store comps declined 1.6% year over year and increased 15.9% on a two-year basis. However, online comps grew 1.8%, accounting for 17.1% of the total sales. On a two-year basis, online comps rose 48.1%.

Hibbett expects the gross margin to have declined year over year in the fiscal fourth quarter. This is mainly due to shifting launch schedules, higher promotions, elevated freight costs and a rise in store occupancy costs stemming from soft comps. On the flip side, store SG&A expenses, as a percentage of sales, are estimated to have decreased year over year, driven by efficient wage management and reduced impairment charges, which somewhat offset higher advertising costs, transaction fees and back-office infrastructure expenses. Consequently, the bottom line is expected to have been in the $1.18-$1.25 range.

What the Zacks Model Unveils

Our proven model doesn’t conclusively predict an earnings beat for Hibbett this time. 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, which is not the case here.

Hibbett currently has a Zacks Rank #3 and 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.

Companies Likely to Post a Beat

DICK'S Sporting Goods (DKS - Free Report) has an Earnings ESP of +4.86% and a Zacks Rank #1. The company is expected to register bottom-line growth when it reports fourth-quarter fiscal 2021 results. The Zacks Consensus Estimate for quarterly earnings per share (EPS) of $3.39 suggests growth of 39.5% from the year-ago quarter’s reported figure. You can see the complete list of today’s Zacks #1 Rank stocks here.

DICK'S Sporting Goods’ top line is anticipated to rise year over year. The consensus mark for revenues is pegged at $3.3 billion, indicating an increase of 5.5% from the year-ago quarter. DKS has a trailing four-quarter earnings surprise of 104.2%, on average.

Casey's General Stores (CASY - Free Report) has an Earnings ESP of +5.19% and a Zacks Rank #3. The company is likely to register an increase in the bottom line when it reports third-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for quarterly EPS of $1.45 suggests an increase of 39.4% from the year-ago reported number.

Casey's top line is expected to increase year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $3.06 billion, which suggests an increase of 52.3% from the prior-year quarter. CASY has a trailing four-quarter earnings surprise of 20.1%, on average.

Kroger (KR - Free Report) has an Earnings ESP of +5.62% and carries a Zacks Rank of 3. The company is likely to register an increase in the top line when it reports fourth-quarter fiscal 2021 numbers. The Zacks Consensus Estimate for quarterly revenues is pegged at $34.5 billion, which suggests a rise of 5.7% from the figure reported in the prior-year quarter.

The Zacks Consensus Estimate for Kroger’s quarterly earnings has risen by 2 cents in the past 30 days at 72 cents per share, suggesting a drop of 11.1% from the year-ago quarter’s reported number. KR has a trailing four-quarter earnings surprise of 20.3%, on average.

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