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Factors Likely to Influence Dillard's (DDS) in Q3 Earnings
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Dillard’s, Inc. (DDS - Free Report) is expected to register year-over-year top-line growth when it reports third-quarter fiscal 2022 numbers. However, higher SG&A expenses and supply-chain costs are likely to have dented its earnings performance despite efforts to manage inventory levels and reduce operating expenses.
The Zacks Consensus Estimate for fiscal third-quarter revenues of $1.49 billion indicates 0.6% growth from the year-ago reported figure.
The Zacks Consensus Estimate for fiscal third-quarter earnings is pegged at $4.87 per share, indicating a 50.4% decline from the year-ago quarter’s reported figure. The consensus estimate has been unchanged in the past 30 days.
In the last reported quarter, the company reported an earnings surprise of 222.9%. We note that in the trailing four quarters, the company’s bottom line beat the Zacks Consensus Estimate by 214.9%, on average.
Dillard’s has been benefiting from continued momentum in consumer demand and focus on inventory and expense management. The company’s strategy to offer fashion-forward and trendy products in order to attract customers has been a key driver.
Dillard's is likely to have retained its sales momentum on strong consumer demand, and robust sales across product categories and regions. It has recently been witnessing robust demand for men’s apparel and accessories, ladies, and children’s apparel categories.
The company’s initiatives to control inventory and expenses have been contributing to bottom-line gains for the past few quarters. Improved consumer demand and better inventory management have been leading to lower markdowns, which have been boosting the gross margin. The trends are expected to have continued in the fiscal third quarter.
However, stiff competition and raw material price inflation are likely to have been concerning. The company has been witnessing elevated SG&A expenses for the past few quarters, which have been denting the bottom line to some extent. The persistence of the trend is anticipated to have affected the company’s profitability in the to-be-reported quarter.
What the Zacks Model Suggests
Our proven model does not conclusively predict an earnings beat for Dillard’s 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.
Dillard’s currently has a Zacks Rank #2 and an Earnings ESP of 0.00%.
3 Stocks With Favorable Combination
Here are three companies that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat in their upcoming releases:
Ross Stores (ROST - Free Report) currently has an Earnings ESP of +2.95% and a Zacks Rank of 2. The company is likely to register top and bottom-line declines when it reports third-quarter fiscal 2022 results. The consensus mark for ROST’s quarterly revenues is pegged at $4.36 billion, which suggests a decline of 4.7% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Ross Stores’ earnings has moved up by a penny to 81 per share in the past seven days. However, the consensus estimate indicates a 25.7% decline from $1.09 reported in the year-ago quarter.
DICK'S Sporting Goods (DKS - Free Report) currently has an Earnings ESP of +17.23% and a Zacks Rank of 2. The company is likely to register declines in the top and bottom lines when it reports third-quarter fiscal 2022 numbers. The consensus mark for DKS’ quarterly earnings has moved up 1.4% in the past 30 days to $2.24 per share. However, the consensus estimate suggests a 29.8% decline from the year-ago quarter’s reported number.
The Zacks Consensus Estimate for DICK'S quarterly revenues is pegged at $2.7 billion, which suggests a decline of 1.7% from the figure reported in the prior-year quarter.
Dollar Tree (DLTR - Free Report) currently has an Earnings ESP of +6.57% and a Zacks Rank of 3. The company is likely to register top and bottom-line growth when it reports third-quarter fiscal 2022 results. The consensus mark for DLTR’s quarterly revenues is pegged at $6.83 billion, which suggests 6.5% growth from the figure reported in the prior-year quarter.
The consensus mark for DLTR’s quarterly earnings has been unchanged in the past 30 days at $1.16 per share. The consensus estimate suggests growth of 20.8% from the year-ago quarter.
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Factors Likely to Influence Dillard's (DDS) in Q3 Earnings
Dillard’s, Inc. (DDS - Free Report) is expected to register year-over-year top-line growth when it reports third-quarter fiscal 2022 numbers. However, higher SG&A expenses and supply-chain costs are likely to have dented its earnings performance despite efforts to manage inventory levels and reduce operating expenses.
The Zacks Consensus Estimate for fiscal third-quarter revenues of $1.49 billion indicates 0.6% growth from the year-ago reported figure.
The Zacks Consensus Estimate for fiscal third-quarter earnings is pegged at $4.87 per share, indicating a 50.4% decline from the year-ago quarter’s reported figure. The consensus estimate has been unchanged in the past 30 days.
In the last reported quarter, the company reported an earnings surprise of 222.9%. We note that in the trailing four quarters, the company’s bottom line beat the Zacks Consensus Estimate by 214.9%, on average.
Dillard's, Inc. Price and EPS Surprise
Dillard's, Inc. price-eps-surprise | Dillard's, Inc. Quote
Key Factors to Note
Dillard’s has been benefiting from continued momentum in consumer demand and focus on inventory and expense management. The company’s strategy to offer fashion-forward and trendy products in order to attract customers has been a key driver.
Dillard's is likely to have retained its sales momentum on strong consumer demand, and robust sales across product categories and regions. It has recently been witnessing robust demand for men’s apparel and accessories, ladies, and children’s apparel categories.
The company’s initiatives to control inventory and expenses have been contributing to bottom-line gains for the past few quarters. Improved consumer demand and better inventory management have been leading to lower markdowns, which have been boosting the gross margin. The trends are expected to have continued in the fiscal third quarter.
However, stiff competition and raw material price inflation are likely to have been concerning. The company has been witnessing elevated SG&A expenses for the past few quarters, which have been denting the bottom line to some extent. The persistence of the trend is anticipated to have affected the company’s profitability in the to-be-reported quarter.
What the Zacks Model Suggests
Our proven model does not conclusively predict an earnings beat for Dillard’s 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.
Dillard’s currently has a Zacks Rank #2 and an Earnings ESP of 0.00%.
3 Stocks With Favorable Combination
Here are three companies that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat in their upcoming releases:
Ross Stores (ROST - Free Report) currently has an Earnings ESP of +2.95% and a Zacks Rank of 2. The company is likely to register top and bottom-line declines when it reports third-quarter fiscal 2022 results. The consensus mark for ROST’s quarterly revenues is pegged at $4.36 billion, which suggests a decline of 4.7% from the figure reported in the prior-year quarter.
You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Ross Stores’ earnings has moved up by a penny to 81 per share in the past seven days. However, the consensus estimate indicates a 25.7% decline from $1.09 reported in the year-ago quarter.
DICK'S Sporting Goods (DKS - Free Report) currently has an Earnings ESP of +17.23% and a Zacks Rank of 2. The company is likely to register declines in the top and bottom lines when it reports third-quarter fiscal 2022 numbers. The consensus mark for DKS’ quarterly earnings has moved up 1.4% in the past 30 days to $2.24 per share. However, the consensus estimate suggests a 29.8% decline from the year-ago quarter’s reported number.
The Zacks Consensus Estimate for DICK'S quarterly revenues is pegged at $2.7 billion, which suggests a decline of 1.7% from the figure reported in the prior-year quarter.
Dollar Tree (DLTR - Free Report) currently has an Earnings ESP of +6.57% and a Zacks Rank of 3. The company is likely to register top and bottom-line growth when it reports third-quarter fiscal 2022 results. The consensus mark for DLTR’s quarterly revenues is pegged at $6.83 billion, which suggests 6.5% growth from the figure reported in the prior-year quarter.
The consensus mark for DLTR’s quarterly earnings has been unchanged in the past 30 days at $1.16 per share. The consensus estimate suggests growth of 20.8% from the year-ago quarter.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.