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Here's How Rocky Brands (RCKY) is Placed Ahead of Q1 Earnings

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Rocky Brands, Inc. (RCKY - Free Report) is likely to report growth in the top line from the year-ago quarter’s reported figure when it releases first-quarter 2022 results on May 3. The Zacks Consensus Estimate for quarterly revenues is pegged at $137.4 million, indicating an improvement of 56.8% from the prior-year quarter’s tally.

However, the bottom is expected to decline from the year-earlier period’s reported figure. The consensus mark for the quarterly earnings is pegged at 94 cents a share, suggesting a fall of about 21% from the year-ago quarter’s tally. The consensus estimate has been stable over the past 30 days.

A glance at this footwear and apparel manufacturer’s performance in the trailing four quarters shows that it has an earnings surprise of 18.9%, on average.

Key Factors to Note

Rocky Brands’ first-quarter performance is most likely to have benefited from strength in brands and products as well as improved fulfillment capabilities. Management is focused on expanding its share in various footwear categories, including western, work and outdoor. Moreover, RCKY is focused on identifying synergies, cost-saving efforts and driving operational excellence.

RCKY is focused on expanding the functionality of its sites and enhancing the direct-to-consumer efforts in marketplaces. All the aforesaid initiatives along with innovative product launches, improved consumer engagement and solid inventory management are likely to have contributed to Rocky Brands’ top-line performance in the to-be-reported quarter.

However, the adverse impacts of the pandemic as well as supply-chain disruptions and labor shortages cannot be ruled out. Also, volatility in the availability and prices of commodities and raw materials plus other related inflationary pressures remain deterrents. These headwinds along with any deleverage in SG&A expenses might have weighed on the bottom line in the to-be-reported quarter.

What the Zacks Model Unveils

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

Rocky Brands, Inc. Price and EPS Surprise

Rocky Brands, Inc. Price and EPS Surprise

Rocky Brands, Inc. price-eps-surprise | Rocky Brands, Inc. Quote

Rocky Brands has an Earnings ESP of 0.00% and a Zacks Rank #3.

Stocks With Favorable Combination

Here are a few companies worth considering from the same sector as our model shows that these have the right combination of elements to beat on earnings this time around:

Gildan Activewear (GIL - Free Report) has an Earnings ESP of +10.20% and a Zacks Rank #2, currently. GIL is likely to register an increase in the bottom line from the year-ago quarter’s reported figure when it reports first-quarter 2022 results. The Zacks Consensus Estimate for quarterly earnings has increased a penny to 49 cents per share in the past seven days, indicating an improvement of 2.1% from the year-ago quarter’s actuals. You can see the complete list of today’s Zacks #1 Rank stocks here.

Gildan Activewear’s top line is expected to rise from the year-ago quarter’s reported figure. The Zacks Consensus Estimate for quarterly revenues is pegged at $656.7 million, which suggests an increase of 11.4% from the figure reported in the prior-year quarter. GIL delivered an earnings beat of 66.6%, on average, in the trailing four quarters.

Marriott International (MAR - Free Report) has an Earnings ESP of +3.84% and a Zacks Rank of 3, currently. MAR is likely to register an increase in the bottom line from the year-ago quarter’s reported figure when it reports first-quarter 2022 results. The Zacks Consensus Estimate for quarterly earnings has declined a penny to 94 cents per share in the past 30 days, indicating an improvement from 10 cents registered in the year-ago quarter.

Marriott International’s top line is expected to rise from the year-ago quarter’s reported figure. The Zacks Consensus Estimate for quarterly revenues is pegged at $4.17 billion, which suggests a surge of 80% from the figure reported in the prior-year quarter. MAR delivered an earnings beat of 86.6%, on average, in the trailing four quarters.

lululemon athletica (LULU - Free Report) currently has an Earnings ESP of +0.06% and a Zacks Rank of 3. LULU is likely to register an increase in the bottom line from the year-ago quarter’s reported figure when it reports first-quarter fiscal 2022 results. The Zacks Consensus Estimate for quarterly earnings has moved 3.6% north to $1.43 per share, suggesting 23.3% growth from the year-ago quarter’s reported number.

lululemon athletica’s top line is expected to rise from the prior-year quarter’s reported number. The Zacks Consensus Estimate for quarterly revenues is pegged at $1.55 billion, which suggests a rise of 26% from the figure reported in the prior-year quarter. LULU delivered an earnings beat of 20.9%, on average, in the trailing four quarters.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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