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Wolverine (WWW) Readies for Q2 Earnings: What to Expect

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Wolverine World Wide, Inc. (WWW - Free Report) is expected to report an increase in its top line from the year-ago quarter’s reported figure when it releases second-quarter 2022 results on Aug 10, before market open. The consensus estimate of $739.7 million for quarterly revenues suggests growth of 17% from the prior-year quarter’s tally.

The Zacks Consensus Estimate for the quarterly earnings has been stable in the past 30 days at 64 cents, indicating a decline of 4.5% from 67 cents earned in the year-earlier quarter. In the trailing four quarters, this Rockford, MI-based player delivered an earnings surprise of 12.3%, on average.

Key Factors to Note

Wolverine’s commitment to product innovation and investment digitization to directly reach customers is likely to have favorably impacted its second-quarter 2022 performance. Management is also strengthening its direct-to-consumer (DTC) capabilities. Speed-to-market initiatives, deployment of digital product development tool and expansion of e-commerce platforms are steadily contributing to its performance. All the aforesaid factors coupled with the expansion in international business and strength in brands are most likely to have favored WWW’s top-line performance during the quarter under review.

The Zacks Consensus Estimate for second-quarter revenues is pegged at $386 million for the Michigan Group unit and $272 million for the Boston Group segment. These indicate growth of 9% and 5.4%, respectively, from the corresponding year-ago period’s reported figures. On its last earnings call, management had anticipated the Merrell brand to deliver growth in low teens and Saucony to generate a double-digit revenue increase for the second quarter. Wolverine had forecast Sperry to increase in mid-single digits and the Wolverine brand’s revenues to grow in high teens for the quarter under review.

On the flip side, higher adjusted selling, general and administrative expenses are likely to have persisted in the to-be-reported quarter. Also, the supply-chain constraints might have been deterrents. These factors might have hurt the bottom line in the quarter under review.

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 currently has a Zacks Rank #3 and an Earnings ESP of -0.52%.

3 Stocks With Favorable Combination

Here are three companies worth considering as our model shows that these have the right combination of elements to beat on earnings this reporting cycle:

Celsius Holdings (CELH - Free Report) currently has an Earnings ESP of +17.39% and a Zacks Rank #1. CELH is expected to register top- and bottom-line growth when it reports the second-quarter 2022 numbers. The Zacks Consensus Estimate for CELH’s quarterly revenues is pegged at $149.8 million, which suggests growth of 130% from the prior-year quarter’s reported figure. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Celsius Holdings’ quarterly earnings has moved a penny up in the past 30 days to 8 cents per share, suggesting an improvement of 60% from the year-ago quarter’s tally. CELH delivered an earnings beat of 206.3%, on average, in the trailing four quarters.

Ulta Beauty (ULTA - Free Report) currently has an Earnings ESP of +3.27% and a Zacks Rank #2. ULTA is likely to register a bottom-line improvement when it reports second-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $4.84 suggests an improvement of 6.1% from the year-ago quarter’s reported number.

Ulta Beauty's top line is expected to rise from the year-ago quarter’s reported number. The Zacks Consensus Estimate for quarterly revenues stands at $2.20 billion, which indicates an improvement of 11.7% from the figure reported in the prior-year quarter. ULTA has a trailing four-quarter earnings surprise of 49.8%, on average.

Costco (COST - Free Report) currently has an Earnings ESP of +1.04% and a Zacks Rank of 2. COST is likely to register a bottom-line increase when it reports fourth-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $4.08 suggests an increase of 4.6% from the year-ago quarter’s reported number.

Costco’s top line is expected to improve from the prior-year quarter’s reported number. The Zacks Consensus Estimate for quarterly revenues is pegged at $71 billion, suggesting growth of 13.3% from the prior-year quarter’s reported figure. COST has a trailing four-quarter earnings surprise of 9.7%, on average.

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