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Columbia Sportswear (COLM) to Post Q3 Earnings: Things to Note

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Columbia Sportswear Company (COLM - Free Report) is likely to register top and bottom-line growth from the respective year-ago quarter’s readings when it reports third-quarter 2022 earnings on Oct 27. The Zacks Consensus Estimate for quarterly revenues is pegged at nearly $966 million, indicating an increase of about 20% from the year-ago quarter’s figure.

The Zacks Consensus Estimate for quarterly earnings has been unchanged in the past 30 days at $1.67 per share, indicating a 9.9% increase from the figure reported in the prior-year quarter. This designer, marketer and distributor of outdoor, active and everyday lifestyle apparel, footwear and accessories has a trailing four-quarter earnings surprise of 61.3%, on average. In the last reported quarter, COLM’s bottom line outperformed the Zacks Consensus Estimate by a margin of 175%.

Things to Consider

Columbia Sportswear is committed to enhancing its global direct-to-consumer (DTC) business through accelerated investments. COLM’s DTC e-commerce business has been robust for a while now. In addition, it is benefiting from a solid performance across its brands. Management remains committed to undertaking brand-enhancing and unique marketing initiatives to strengthen COLM’s position. Continuation of these factors is most likely to boost results during the quarter under review.

On its second-quarter earnings call, management had projected net sales growth of around 20% for the third quarter, mainly backed by the sale of its fall 2022 order book and a modest direct-to-consumer (DTC) advancement. It anticipated net sales growth of 9-12% for the second half of 2022. Management had envisioned earnings per share in the range of $3.85-$4.25 for the second half. An EPS of $3.91 was reported in the same period last year.

Increased promotional activity to rationalize the inventory and supply-chain hurdles remains a concern. Columbia Sportswear has been seeing higher SG&A costs for a while now.

What the Zacks Model Unveils

Our proven model doesn’t conclusively predict an earnings beat for Columbia Sportswear 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 as elaborated below. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Columbia Sportswear has a Zacks Rank #3 and an Earnings ESP of -0.56%.

Stocks With Favorable Combination

Here are some companies you may want to consider, as our model shows that these have the right combination of elements to deliver an earnings beat.

BJ's Wholesale (BJ - Free Report) has an Earnings ESP of +3.13% and a Zacks Rank of 1, currently. BJ is likely to register top-line growth from the prior-year fiscal quarter’s tally when it reports third-quarter fiscal 2022. The Zacks Consensus Estimate for quarterly revenues is pegged at $4.62 billion, suggesting 8.3% growth from the figure reported in the prior-year fiscal quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for BJ's Wholesale’s earnings for the fiscal third quarter is pegged at 80 cents, suggesting a 12.1% decline from 91 cents reported in the year-ago fiscal quarter. The consensus mark has moved up a penny in the past 30 days.

Costco (COST - Free Report) currently has an Earnings ESP of +0.53% and a Zacks Rank of 3, presently. COST is expected to register top and bottom-line growth from the year-ago fiscal quarter’s tallies when it reports first-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for COST’s quarterly revenues is pegged at $54.98 billion, suggesting growth of 9.2% from the prior-year fiscal quarter’s reported figure.

The Zacks Consensus Estimate for Costco’s quarterly earnings has moved up 2.3% in the past 30 days. The consensus estimate for earnings suggests 6.1% growth from the year-ago fiscal quarter’s reported number. COST delivered an earnings beat of 7.7%, on average, in the trailing four quarters.

Ralph Lauren (RL - Free Report) currently has an Earnings ESP of +0.08% and a Zacks Rank #3. RL is anticipated to register top-line growth from the year-ago fiscal quarter’s reading when it reports second-quarter fiscal 2023 results. The Zacks Consensus Estimate for quarterly revenues is pegged at $1.6 billion, indicating an improvement of 3.7% from the figure reported in the prior-year fiscal quarter.

However, the Zacks Consensus Estimate for Ralph Lauren’s earnings of $2.07 per share has been stable in the past 30 days. The consensus estimate suggests a decline of 21% from $2.62 reported in the year-ago fiscal quarter. RL delivered an earnings beat of 34.9%, on average, in the trailing four quarters.

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

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