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On Holding (ONON) to Report Q4 Earnings: What's in the Cards?
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On Holding AG (ONON - Free Report) is scheduled to report fourth-quarter 2023 results on Mar 12, before the opening bell. In the last reported quarter, the company reported an earnings surprise of 37.5%.
How are Estimates Placed?
The Zacks Consensus Estimate for fourth-quarter earnings per share (EPS) is pegged at 11 cents. The metric indicates an improvement of 450% from EPS of 2 cents reported in the year-ago quarter.
For revenues, the consensus mark is pegged at nearly $510.2 million. The metric suggests an increase of 34% from the year-ago quarter’s figure.
Let's look at how things have shaped up in the quarter.
Factors at Play
On Holding’s fourth-quarter performance is likely to have benefited from increased brand demand, new store openings, an expanding presence in China and product innovation. This and strategic investments in brand awareness and strong sell-out numbers at wholesale partners are likely to have driven the company’s top line in the to-be-reported quarter.
The company anticipates fourth-quarter wholesale growth to fall within the high single digits and expects continued strong growth rates in its direct-to-consumer (D2C) segment, aligning closely with previous quarters' performance.
Operational challenges in the U.S. business, delays in order deliveries and strategic store closures in the EMEA region are likely to have dented the company's performance in the fourth quarter. Currency fluctuations are likely to have affected the global sales growth rate in the to-be-reported quarter.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for On Holding this time. A stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to beat earnings. However, that's not the case here.
Earnings ESP: On Holding has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here are some stocks from the Zacks Consumer Discretionary sector that investors may consider as our model shows that these have the right combination of elements to post an earnings beat.
PVH Corp. (PVH - Free Report) has an Earnings ESP of +1.23% and a Zacks Rank #2.
PVH’s earnings for the to-be-reported quarter are expected to increase 46.6% year over year. Notably, the company reported better-than-expected earnings in each of the trailing four quarters, the average surprise being 18.9%.
Guess?, Inc. (GES - Free Report) has an Earnings ESP of +4.25% and a Zacks Rank #2.
GES is expected to register a 10.9% year-over-year decline in earnings for the to-be-reported quarter. The company reported better-than-expected earnings in three of the trailing four quarters and missed on the remaining occasion, the average surprise being 43.1%.
NIKE, Inc. (NKE - Free Report) has an Earnings ESP of +5.21% and a Zacks Rank #3.
NKE’s earnings for the to-be-reported quarter are expected to decline 11.4% year over year. The company reported better-than-expected earnings in three of the trailing four quarters and missed on the remaining occasion, the average surprise being 25%.
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On Holding (ONON) to Report Q4 Earnings: What's in the Cards?
On Holding AG (ONON - Free Report) is scheduled to report fourth-quarter 2023 results on Mar 12, before the opening bell. In the last reported quarter, the company reported an earnings surprise of 37.5%.
How are Estimates Placed?
The Zacks Consensus Estimate for fourth-quarter earnings per share (EPS) is pegged at 11 cents. The metric indicates an improvement of 450% from EPS of 2 cents reported in the year-ago quarter.
For revenues, the consensus mark is pegged at nearly $510.2 million. The metric suggests an increase of 34% from the year-ago quarter’s figure.
On Holding AG Price and EPS Surprise
On Holding AG price-eps-surprise | On Holding AG Quote
Let's look at how things have shaped up in the quarter.
Factors at Play
On Holding’s fourth-quarter performance is likely to have benefited from increased brand demand, new store openings, an expanding presence in China and product innovation. This and strategic investments in brand awareness and strong sell-out numbers at wholesale partners are likely to have driven the company’s top line in the to-be-reported quarter.
The company anticipates fourth-quarter wholesale growth to fall within the high single digits and expects continued strong growth rates in its direct-to-consumer (D2C) segment, aligning closely with previous quarters' performance.
Operational challenges in the U.S. business, delays in order deliveries and strategic store closures in the EMEA region are likely to have dented the company's performance in the fourth quarter. Currency fluctuations are likely to have affected the global sales growth rate in the to-be-reported quarter.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for On Holding this time. A stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to beat earnings. However, that's not the case here.
Earnings ESP: On Holding has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company has a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks Poised to Beat Earnings Estimates
Here are some stocks from the Zacks Consumer Discretionary sector that investors may consider as our model shows that these have the right combination of elements to post an earnings beat.
PVH Corp. (PVH - Free Report) has an Earnings ESP of +1.23% and a Zacks Rank #2.
PVH’s earnings for the to-be-reported quarter are expected to increase 46.6% year over year. Notably, the company reported better-than-expected earnings in each of the trailing four quarters, the average surprise being 18.9%.
Guess?, Inc. (GES - Free Report) has an Earnings ESP of +4.25% and a Zacks Rank #2.
GES is expected to register a 10.9% year-over-year decline in earnings for the to-be-reported quarter. The company reported better-than-expected earnings in three of the trailing four quarters and missed on the remaining occasion, the average surprise being 43.1%.
NIKE, Inc. (NKE - Free Report) has an Earnings ESP of +5.21% and a Zacks Rank #3.
NKE’s earnings for the to-be-reported quarter are expected to decline 11.4% year over year. The company reported better-than-expected earnings in three of the trailing four quarters and missed on the remaining occasion, the average surprise being 25%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.