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Build-A-Bear (BBW) to Post Q3 Earnings: What's in the Cards?
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Build-A-Bear Workshop, Inc. (BBW - Free Report) is expected to register year-over-year growth in the top line, while the bottom line is likely to remain flat when it reports its third-quarter fiscal 2023 results on Nov 30, before the opening bell.
The Zacks Consensus Estimate for revenues is pegged at $107.6 million, indicating a 3% increase from the year-ago fiscal quarter’s reported figure. The consensus estimate for quarterly earnings has been stable at 51 cents in the past 30 days, in line with the fiscal year-ago reported figure.
BBW delivered an earnings surprise of 39% in the last reported quarter. The company has a trailing four-quarter earnings surprise of 21.6%, on average.
Key Aspects to Note
Build-A-Bear is expected to have benefited from solid store traffic growth and an increase in e-commerce demand in the fiscal third quarter. The company’s robust product pipeline, increase in marketing campaigns and the opening of corporate and partner-operated locations are likely to have enhanced its performance and supported growth.
The addition of several operational stores by BBW’s partners, like Great Wolf Lodge, Carnival Cruise Lines and Kalahari Resorts, is expected to have augmented the commercial segment’s performance. Also, the impact of supply chain normalization is likely to have aided its performance in the to-be-reported quarter.
The company’s focus on expanding brand assortments, introducing an innovative line of products and effective inventory management are likely to have boosted its performance in the fiscal third quarter. Also, its digital initiatives, along with its focus on operational execution and cost-control measures, are likely to have supported its performance.
That said, Build-A-Bear has been grappling with rising costs and expenses over time. In the first two quarters of fiscal 2023, the company’s selling, general and administrative expenses increased by 9.4% on a year-over-year basis. The metric, as a percentage of net sales, increased by 170 basis points to 41%. The increase in operating expenses has been related to higher wages and talent acquisition. Any deleverage in operating expenses might have hurt BBW’s margins and profitability in the quarter under review.
Build-A-Bear Workshop, Inc. Price and EPS Surprise
Our proven model does not conclusively predict an earnings beat for Build-A-Bear 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, which is not the case here.
Build-A-Bear has a Zacks Rank #3 and an Earnings ESP of 0.00% at present. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Stocks Poised to Beat Earnings Estimates
Here are a few companies that, according to our model, have the right combination of elements to come up with an earnings beat this reporting cycle:
GPS’ earnings for the to-be-reported quarter are expected to increase by 125.3%. The consensus mark for its quarterly earnings has moved up by 18.8% to 19 cents per share in the past 30 days.
The Zacks Consensus Estimate for Gap’s quarterly revenues is pegged at $4.2 billion, which suggests a fall of 0.2% from the figure reported in the prior-year quarter.
American Eagle (AEO - Free Report) has an Earnings ESP of +1.98% and currently carries a Zacks Rank #2. The company is likely to register growth in the top and bottom lines when it reports fourth-quarter fiscal 2023 numbers. The consensus mark for AEO’s quarterly earnings has moved up by 2.4% to 43 cents per share in the past 30 days. The consensus estimate suggests 16.2% growth from the year-ago quarter’s reported number.
The Zacks Consensus Estimate for American Eagle’s quarterly revenues is pinned at $1.58 billion, suggesting growth of 5.7% from the figure reported in the prior-year quarter.
Abercrombie & Fitch Co. (ANF - Free Report) has an Earnings ESP of +10.29% and carries a Zacks Rank #2. ANF’s earnings for the to-be-reported quarter are expected to increase by 171.6% on a year-over-year basis. The consensus mark for its quarterly earnings has moved up by 21.5% to $2.20 per share in the past 30 days.
The Zacks Consensus Estimate for Abercrombie & Fitch’s quarterly revenues is pegged at $1.35 billion, which suggests growth of 12.5% from the figure reported in the prior-year quarter.
Image: Bigstock
Build-A-Bear (BBW) to Post Q3 Earnings: What's in the Cards?
Build-A-Bear Workshop, Inc. (BBW - Free Report) is expected to register year-over-year growth in the top line, while the bottom line is likely to remain flat when it reports its third-quarter fiscal 2023 results on Nov 30, before the opening bell.
The Zacks Consensus Estimate for revenues is pegged at $107.6 million, indicating a 3% increase from the year-ago fiscal quarter’s reported figure. The consensus estimate for quarterly earnings has been stable at 51 cents in the past 30 days, in line with the fiscal year-ago reported figure.
BBW delivered an earnings surprise of 39% in the last reported quarter. The company has a trailing four-quarter earnings surprise of 21.6%, on average.
Key Aspects to Note
Build-A-Bear is expected to have benefited from solid store traffic growth and an increase in e-commerce demand in the fiscal third quarter. The company’s robust product pipeline, increase in marketing campaigns and the opening of corporate and partner-operated locations are likely to have enhanced its performance and supported growth.
The addition of several operational stores by BBW’s partners, like Great Wolf Lodge, Carnival Cruise Lines and Kalahari Resorts, is expected to have augmented the commercial segment’s performance. Also, the impact of supply chain normalization is likely to have aided its performance in the to-be-reported quarter.
The company’s focus on expanding brand assortments, introducing an innovative line of products and effective inventory management are likely to have boosted its performance in the fiscal third quarter. Also, its digital initiatives, along with its focus on operational execution and cost-control measures, are likely to have supported its performance.
That said, Build-A-Bear has been grappling with rising costs and expenses over time. In the first two quarters of fiscal 2023, the company’s selling, general and administrative expenses increased by 9.4% on a year-over-year basis. The metric, as a percentage of net sales, increased by 170 basis points to 41%. The increase in operating expenses has been related to higher wages and talent acquisition. Any deleverage in operating expenses might have hurt BBW’s margins and profitability in the quarter under review.
Build-A-Bear Workshop, Inc. Price and EPS Surprise
Build-A-Bear Workshop, Inc. price-eps-surprise | Build-A-Bear Workshop, Inc. Quote
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Build-A-Bear 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, which is not the case here.
Build-A-Bear has a Zacks Rank #3 and an Earnings ESP of 0.00% at present. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Stocks Poised to Beat Earnings Estimates
Here are a few companies that, according to our model, have the right combination of elements to come up with an earnings beat this reporting cycle:
The Gap, Inc. (GPS - Free Report) has an Earnings ESP of +13.22% and sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
GPS’ earnings for the to-be-reported quarter are expected to increase by 125.3%. The consensus mark for its quarterly earnings has moved up by 18.8% to 19 cents per share in the past 30 days.
The Zacks Consensus Estimate for Gap’s quarterly revenues is pegged at $4.2 billion, which suggests a fall of 0.2% from the figure reported in the prior-year quarter.
American Eagle (AEO - Free Report) has an Earnings ESP of +1.98% and currently carries a Zacks Rank #2. The company is likely to register growth in the top and bottom lines when it reports fourth-quarter fiscal 2023 numbers. The consensus mark for AEO’s quarterly earnings has moved up by 2.4% to 43 cents per share in the past 30 days. The consensus estimate suggests 16.2% growth from the year-ago quarter’s reported number.
The Zacks Consensus Estimate for American Eagle’s quarterly revenues is pinned at $1.58 billion, suggesting growth of 5.7% from the figure reported in the prior-year quarter.
Abercrombie & Fitch Co. (ANF - Free Report) has an Earnings ESP of +10.29% and carries a Zacks Rank #2. ANF’s earnings for the to-be-reported quarter are expected to increase by 171.6% on a year-over-year basis. The consensus mark for its quarterly earnings has moved up by 21.5% to $2.20 per share in the past 30 days.
The Zacks Consensus Estimate for Abercrombie & Fitch’s quarterly revenues is pegged at $1.35 billion, which suggests growth of 12.5% from the figure reported in the prior-year quarter.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.