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Can Hibbett (HIBB) Beat on Q3 Earnings Despite All Odds?
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Hibbett, Inc. (HIBB - Free Report) is likely to witness year-over-year increases in the top and bottom lines when it reports third-quarter fiscal 2023 earnings on Nov 29. The Zacks Consensus Estimate for revenues is pegged at $437.8 million, suggesting growth of 14.7% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for earnings has moved up 1.6% in the past seven days at $2.58 per share, indicating a rise of 53.6% from the figure reported in the prior-year period.
Hibbett, which engages in the retail of athletic-inspired fashion products, has a negative trailing four-quarter earnings surprise of 5.5%, on average. HIBB’s earnings missed the Zacks Consensus Estimate by 17.7% in the last reported quarter.
Hibbett’s third-quarter fiscal 2023 results are expected to reflect gains from the continued momentum from the back-to-school season.
On the last reported quarter’s earnings call, management noted sequential improvement in the supply chain and favorable sales trends for the back-to-school shopping season. The company anticipated these trends to persist in the second half of fiscal 2023.
Consequently, Hibbett raised the comparable sales (comps) guidance for the second half of fiscal 2023. The company anticipates comps growth to be in the positive low-double digits for the second half of fiscal 2023. This indicates continued sales momentum for the fiscal third quarter. The company also expects sales growth on a year-over-year basis for the third and fourth quarters, leading to better leverage of fixed costs.
Moreover, the company’s strength in e-commerce and store expansion plans bodes well. Hibbett has been benefiting from increased investments in customer acquisition and retention, store growth, improved store productivity, and better omni-channel capabilities. Also, strong vendor relationships have been contributing to growth in the Hibbett and City Gear brands. The company is likely to have gained from the 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 omni-channel capabilities to fulfill online orders and serve customers. Growth in e-commerce sales is likely to have contributed to sales gains in the to-be-reported quarter
However, the adverse impacts of the ongoing supply-chain disruptions, rising inflation, wage pressures and geopolitical challenges have been acting as deterrents. Lower product margins, and higher freight and transportation costs are likely to have marred the company’s bottom line.
On the last reported quarter’s earnings call, management anticipated wage inflation, higher costs related to growth in e-commerce, a larger store count and back-office infrastructure investments to continue hurting margins throughout fiscal 2022. This is expected to have weighed on the gross and operating margins in the to-be-reported quarter.
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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Hibbett currently has a Zacks Rank #2 and an Earnings ESP of -8.41%.
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 post an earnings beat this season:
Dollar General (DG - Free Report) currently has an Earnings ESP of +1.58% and a Zacks Rank of 2. The company is likely to register increases in the top and bottom lines when it reports third-quarter fiscal 2022 numbers. The consensus mark for DG’s quarterly earnings has moved up by a penny in the past 30 days to $2.55 per share. The consensus estimate suggests a 22.6% increase from the year-ago quarter’s reported number.
Dollar General’s top line is expected to decline year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $9.43 billion, which suggests a rise of 10.7% from the figure reported in the prior-year quarter.
Ulta Beauty (ULTA - Free Report) currently has an Earnings ESP of +0.32% and a Zacks Rank of 3. The company is likely to register increases in the top and bottom lines when it reports third-quarter fiscal 2022 numbers. The consensus mark for ULTA’s quarterly earnings has moved up 0.5% in the past seven days to $4.08 per share. The consensus estimate suggests a 3.6% rise from the year-ago quarter’s reported number.
The Zacks Consensus Estimate for Ulta Beauty’s quarterly revenues is pegged at $2.2 billion, which suggests an increase of 9.7% from the figure reported in the prior-year quarter.
Casey's General Stores (CASY - Free Report) currently has an Earnings ESP of +12.58% and a Zacks Rank of 3. The company is likely to register top and bottom-line growth when it reports second-quarter fiscal 2023 results. The consensus mark for CASY’s quarterly revenues is pegged at $4.2 billion, which suggests growth of 27.5% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Casey's earnings has moved up 5.1% to $3.10 per share in the past seven days. The consensus estimate indicates 19.7% growth from the year-ago quarter’s reported figure.
Image: Bigstock
Can Hibbett (HIBB) Beat on Q3 Earnings Despite All Odds?
Hibbett, Inc. (HIBB - Free Report) is likely to witness year-over-year increases in the top and bottom lines when it reports third-quarter fiscal 2023 earnings on Nov 29. The Zacks Consensus Estimate for revenues is pegged at $437.8 million, suggesting growth of 14.7% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for earnings has moved up 1.6% in the past seven days at $2.58 per share, indicating a rise of 53.6% from the figure reported in the prior-year period.
Hibbett, which engages in the retail of athletic-inspired fashion products, has a negative trailing four-quarter earnings surprise of 5.5%, on average. HIBB’s earnings missed the Zacks Consensus Estimate by 17.7% in the last reported quarter.
Hibbett, Inc. Price and EPS Surprise
Hibbett, Inc. price-eps-surprise | Hibbett, Inc. Quote
Key Factors to Consider
Hibbett’s third-quarter fiscal 2023 results are expected to reflect gains from the continued momentum from the back-to-school season.
On the last reported quarter’s earnings call, management noted sequential improvement in the supply chain and favorable sales trends for the back-to-school shopping season. The company anticipated these trends to persist in the second half of fiscal 2023.
Consequently, Hibbett raised the comparable sales (comps) guidance for the second half of fiscal 2023. The company anticipates comps growth to be in the positive low-double digits for the second half of fiscal 2023. This indicates continued sales momentum for the fiscal third quarter. The company also expects sales growth on a year-over-year basis for the third and fourth quarters, leading to better leverage of fixed costs.
Moreover, the company’s strength in e-commerce and store expansion plans bodes well. Hibbett has been benefiting from increased investments in customer acquisition and retention, store growth, improved store productivity, and better omni-channel capabilities. Also, strong vendor relationships have been contributing to growth in the Hibbett and City Gear brands. The company is likely to have gained from the 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 omni-channel capabilities to fulfill online orders and serve customers. Growth in e-commerce sales is likely to have contributed to sales gains in the to-be-reported quarter
However, the adverse impacts of the ongoing supply-chain disruptions, rising inflation, wage pressures and geopolitical challenges have been acting as deterrents. Lower product margins, and higher freight and transportation costs are likely to have marred the company’s bottom line.
On the last reported quarter’s earnings call, management anticipated wage inflation, higher costs related to growth in e-commerce, a larger store count and back-office infrastructure investments to continue hurting margins throughout fiscal 2022. This is expected to have weighed on the gross and operating margins in the to-be-reported quarter.
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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Hibbett currently has a Zacks Rank #2 and an Earnings ESP of -8.41%.
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 post an earnings beat this season:
Dollar General (DG - Free Report) currently has an Earnings ESP of +1.58% and a Zacks Rank of 2. The company is likely to register increases in the top and bottom lines when it reports third-quarter fiscal 2022 numbers. The consensus mark for DG’s quarterly earnings has moved up by a penny in the past 30 days to $2.55 per share. The consensus estimate suggests a 22.6% increase from the year-ago quarter’s reported number.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Dollar General’s top line is expected to decline year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $9.43 billion, which suggests a rise of 10.7% from the figure reported in the prior-year quarter.
Ulta Beauty (ULTA - Free Report) currently has an Earnings ESP of +0.32% and a Zacks Rank of 3. The company is likely to register increases in the top and bottom lines when it reports third-quarter fiscal 2022 numbers. The consensus mark for ULTA’s quarterly earnings has moved up 0.5% in the past seven days to $4.08 per share. The consensus estimate suggests a 3.6% rise from the year-ago quarter’s reported number.
The Zacks Consensus Estimate for Ulta Beauty’s quarterly revenues is pegged at $2.2 billion, which suggests an increase of 9.7% from the figure reported in the prior-year quarter.
Casey's General Stores (CASY - Free Report) currently has an Earnings ESP of +12.58% and a Zacks Rank of 3. The company is likely to register top and bottom-line growth when it reports second-quarter fiscal 2023 results. The consensus mark for CASY’s quarterly revenues is pegged at $4.2 billion, which suggests growth of 27.5% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Casey's earnings has moved up 5.1% to $3.10 per share in the past seven days. The consensus estimate indicates 19.7% growth from the year-ago quarter’s reported figure.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.