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Burlington Stores (BURL) to Post Q2 Earnings: Factors to Note
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Burlington Stores, Inc. (BURL - Free Report) is likely to register an increase in the top line when it reports second-quarter fiscal 2023 earnings on Aug 24 before market open. The Zacks Consensus Estimate for revenues stands at $2,172 million, indicating an increase of 9.2% from the prior-year reported figure.
The bottom line of this off-price retailer of high-quality, branded apparel at everyday low prices is expected to have increased year over year. Over the past seven days, the Zacks Consensus Estimate for second-quarter earnings per share has risen by a penny to 43 cents, suggesting an increase of 22.9% from the year-ago quarter.
Burlington Stores has a trailing four-quarter earnings surprise of 8.5%, on average. In the last reported quarter, this Burlington, NJ-based company missed the Zacks Consensus Estimate by a margin of 9.7%.
Factors to Note
Burlington Stores faced external challenges in the first quarter, including lower tax refunds and cooler weather. Per management, these factors led to a temporary slowdown. Nonetheless, the rebound in sales momentum from mid-April onward indicated that these challenges might have been transitory. This has set a more optimistic tone for the second quarter. We expect a comparable store sales increase of 3% for the quarter under discussion.
The Burlington 2.0 strategy is poised to have driven significant improvements for the company. This initiative focuses on three aspects — marketing, merchandising and store prototypes. The ability to quickly respond to evolving market dynamics and adjust inventory levels based on real-time data insights have been enabling the company to seize opportunities. No wonder, management has been boosting assortments and merchandising capabilities for a while.
Burlington Stores, Inc. Price, Consensus and EPS Surprise
On its last earnings call, Burlington Stores guided an 8-10% increase in sales, with 2-4% growth in comparable store sales. It projected a 10 to 50-basis point increase in the adjusted EBIT margin. It guided adjusted earnings per share in the range of 35 cents-45 cents.
Despite the aforementioned tailwinds, we cannot ignore concerns related to the company's dependency on lower-income customers, potential margin pressures and other operational challenges.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for Burlington Stores this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is the case here.
Burlington Stores has an Earnings ESP of +2.81% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
3 More Stocks With the Favorable Combination
Here are three other companies you may want to consider as our model shows that these too have the right combination of elements to post an earnings beat:
American Eagle Outfitters (AEO - Free Report) currently has an Earnings ESP of +8.52% and a Zacks Rank #2. The company is likely to register a bottom-line increase when it reports second-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for the quarterly earnings per share of 15 cents suggests a sharp increase from 4 cents reported in the year-ago quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
American Eagle Outfitters’ top line is expected to decrease year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $1.19 billion, which indicates a marginal decline of 0.9% from the figure reported in the prior-year quarter. American Eagle Outfitters has a trailing four-quarter earnings surprise of 9.2%, on average.
Casey's General Stores (CASY - Free Report) currently has an Earnings ESP of +1.03% and carries a Zacks Rank #3. The company is likely to register a bottom-line decrease when it reports first-quarter fiscal 2024 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $3.39 suggests a drop of 17.1% from the year-ago quarter.
Casey's General Stores’ top line is expected to decrease year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $3.85 billion, which indicates a drop of 13.5% from the figure reported in the prior-year quarter. CASY has a trailing four-quarter earnings surprise of 7.5%, on average.
Costco (COST - Free Report) currently has an Earnings ESP of +1.08% and a Zacks Rank of 3. The company is likely to register an increase in the bottom line when it reports fourth-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $4.72 suggests a rise of 12.4% from the year-ago reported number.
Costco’s top line is expected to ascend year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $78.86 billion, which calls for an increase of 9.4% from the prior-year quarter. COST has a trailing four-quarter earnings surprise of 1.8%, on average.
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Burlington Stores (BURL) to Post Q2 Earnings: Factors to Note
Burlington Stores, Inc. (BURL - Free Report) is likely to register an increase in the top line when it reports second-quarter fiscal 2023 earnings on Aug 24 before market open. The Zacks Consensus Estimate for revenues stands at $2,172 million, indicating an increase of 9.2% from the prior-year reported figure.
The bottom line of this off-price retailer of high-quality, branded apparel at everyday low prices is expected to have increased year over year. Over the past seven days, the Zacks Consensus Estimate for second-quarter earnings per share has risen by a penny to 43 cents, suggesting an increase of 22.9% from the year-ago quarter.
Burlington Stores has a trailing four-quarter earnings surprise of 8.5%, on average. In the last reported quarter, this Burlington, NJ-based company missed the Zacks Consensus Estimate by a margin of 9.7%.
Factors to Note
Burlington Stores faced external challenges in the first quarter, including lower tax refunds and cooler weather. Per management, these factors led to a temporary slowdown. Nonetheless, the rebound in sales momentum from mid-April onward indicated that these challenges might have been transitory. This has set a more optimistic tone for the second quarter. We expect a comparable store sales increase of 3% for the quarter under discussion.
The Burlington 2.0 strategy is poised to have driven significant improvements for the company. This initiative focuses on three aspects — marketing, merchandising and store prototypes. The ability to quickly respond to evolving market dynamics and adjust inventory levels based on real-time data insights have been enabling the company to seize opportunities. No wonder, management has been boosting assortments and merchandising capabilities for a while.
Burlington Stores, Inc. Price, Consensus and EPS Surprise
Burlington Stores, Inc. price-consensus-eps-surprise-chart | Burlington Stores, Inc. Quote
On its last earnings call, Burlington Stores guided an 8-10% increase in sales, with 2-4% growth in comparable store sales. It projected a 10 to 50-basis point increase in the adjusted EBIT margin. It guided adjusted earnings per share in the range of 35 cents-45 cents.
Despite the aforementioned tailwinds, we cannot ignore concerns related to the company's dependency on lower-income customers, potential margin pressures and other operational challenges.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for Burlington Stores this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is the case here.
Burlington Stores has an Earnings ESP of +2.81% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
3 More Stocks With the Favorable Combination
Here are three other companies you may want to consider as our model shows that these too have the right combination of elements to post an earnings beat:
American Eagle Outfitters (AEO - Free Report) currently has an Earnings ESP of +8.52% and a Zacks Rank #2. The company is likely to register a bottom-line increase when it reports second-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for the quarterly earnings per share of 15 cents suggests a sharp increase from 4 cents reported in the year-ago quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
American Eagle Outfitters’ top line is expected to decrease year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $1.19 billion, which indicates a marginal decline of 0.9% from the figure reported in the prior-year quarter. American Eagle Outfitters has a trailing four-quarter earnings surprise of 9.2%, on average.
Casey's General Stores (CASY - Free Report) currently has an Earnings ESP of +1.03% and carries a Zacks Rank #3. The company is likely to register a bottom-line decrease when it reports first-quarter fiscal 2024 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $3.39 suggests a drop of 17.1% from the year-ago quarter.
Casey's General Stores’ top line is expected to decrease year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $3.85 billion, which indicates a drop of 13.5% from the figure reported in the prior-year quarter. CASY has a trailing four-quarter earnings surprise of 7.5%, on average.
Costco (COST - Free Report) currently has an Earnings ESP of +1.08% and a Zacks Rank of 3. The company is likely to register an increase in the bottom line when it reports fourth-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $4.72 suggests a rise of 12.4% from the year-ago reported number.
Costco’s top line is expected to ascend year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $78.86 billion, which calls for an increase of 9.4% from the prior-year quarter. COST has a trailing four-quarter earnings surprise of 1.8%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.