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CAVA Group (CAVA) Gears Up for Q1 Earnings: What's in Store?
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CAVA Group, Inc. (CAVA - Free Report) is scheduled to report fiscal first-quarter 2024 results on May 28. In the last reported quarter, the company’s earnings surpassed the Zacks Consensus Estimate by 100%.
How are Estimates Placed?
The Zacks Consensus Estimate for fiscal first-quarter 2024 earnings per share has remained stable at 3 cents over the past 30 days. In the last quarter, the company reported earnings per share of 2 cents.
The consensus mark for total revenues is pegged at $245.9 million, suggesting a sequential gain of 38.9% from the reported figure of $177 million.
Key Factors to Consider
The company’s results are likely to be aided by menu price increases and a favorable product mix. These positive factors are likely to have driven CAVA restaurant’s sales growth. Additionally, new restaurant openings are expected to have supported growth.
The company's emphasis on category-defining brands and highly differentiated product offerings has bolstered growth prospects to some extent. A sequential improvement in visitation is likely to have driven the top line. The Zacks Consensus Estimate for CAVA Group restaurant sales is pegged at $243 million, up 38.9% sequentially.
However, increases in food, beverage and packaging expenses, along with labor inflation due to higher average hourly wages, are likely to have negatively impacted the company’s bottom line. Commodity inflation is also likely to have been an overhang.
Our proven model doesn’t conclusively predict an earnings beat for CAVA Group this time around. Per our proven model, a stock with the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates. This is not the case here.
Earnings ESP: CAVA has an Earnings ESP of -66.67%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank of 2.
Stocks Poised to Beat on Earnings
Here are some companies in the Zacks Retail-Wholesale sector, which, according to our model, have the right combination of elements to post an earnings beat in the quarter to be reported.
Kohl's Corporation (KSS - Free Report) currently has an Earnings ESP of +85.06% and carries a Zacks Rank #3. The Zacks Consensus Estimate for first-quarter fiscal 2024 earnings per share is pegged at 4 cents, which suggests a sharp decline from the year-ago reported number of 13 cents.
Kohl's top line is expected to decline year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $3.54 billion, which indicates a drop of 0.9% from the prior-year quarter. KSS has a trailing four-quarter earnings surprise of 84.2%, on average.
Bath & Body Works (BBWI - Free Report) currently has an Earnings ESP of +5.23% and a Zacks Rank of 2.
Bath & Body Works’ top line is expected to decline year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $1.37 billion, which indicates a drop of 2.1% from the prior-year quarter. BBWI has a trailing four-quarter earnings surprise of 23.2%, on average.
American Eagle Outfitters (AEO - Free Report) currently has an Earnings ESP of +3.98% and a Zacks Rank #3. The company is likely to register an increase in the bottom line in first-quarter fiscal 2024. The Zacks Consensus Estimate for quarterly earnings per share of 28 cents suggests a jump of 64.7% from the year-ago quarter.
American Eagle Outfitters’ top line is anticipated to rise year over year. The consensus mark for revenues is pegged at $1.15 billion, which implies an increase of 6.2% from the year-ago quarter. AEO has a trailing four-quarter earnings surprise of 22.7%, on average.
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CAVA Group (CAVA) Gears Up for Q1 Earnings: What's in Store?
CAVA Group, Inc. (CAVA - Free Report) is scheduled to report fiscal first-quarter 2024 results on May 28. In the last reported quarter, the company’s earnings surpassed the Zacks Consensus Estimate by 100%.
How are Estimates Placed?
The Zacks Consensus Estimate for fiscal first-quarter 2024 earnings per share has remained stable at 3 cents over the past 30 days. In the last quarter, the company reported earnings per share of 2 cents.
The consensus mark for total revenues is pegged at $245.9 million, suggesting a sequential gain of 38.9% from the reported figure of $177 million.
Key Factors to Consider
The company’s results are likely to be aided by menu price increases and a favorable product mix. These positive factors are likely to have driven CAVA restaurant’s sales growth. Additionally, new restaurant openings are expected to have supported growth.
The company's emphasis on category-defining brands and highly differentiated product offerings has bolstered growth prospects to some extent. A sequential improvement in visitation is likely to have driven the top line. The Zacks Consensus Estimate for CAVA Group restaurant sales is pegged at $243 million, up 38.9% sequentially.
However, increases in food, beverage and packaging expenses, along with labor inflation due to higher average hourly wages, are likely to have negatively impacted the company’s bottom line. Commodity inflation is also likely to have been an overhang.
CAVA Group, Inc. Price and EPS Surprise
CAVA Group, Inc. price-eps-surprise | CAVA Group, Inc. Quote
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for CAVA Group this time around. Per our proven model, a stock with the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates. This is not the case here.
Earnings ESP: CAVA has an Earnings ESP of -66.67%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank of 2.
Stocks Poised to Beat on Earnings
Here are some companies in the Zacks Retail-Wholesale sector, which, according to our model, have the right combination of elements to post an earnings beat in the quarter to be reported.
Kohl's Corporation (KSS - Free Report) currently has an Earnings ESP of +85.06% and carries a Zacks Rank #3. The Zacks Consensus Estimate for first-quarter fiscal 2024 earnings per share is pegged at 4 cents, which suggests a sharp decline from the year-ago reported number of 13 cents.
Kohl's top line is expected to decline year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $3.54 billion, which indicates a drop of 0.9% from the prior-year quarter. KSS has a trailing four-quarter earnings surprise of 84.2%, on average.
Bath & Body Works (BBWI - Free Report) currently has an Earnings ESP of +5.23% and a Zacks Rank of 2.
The Zacks Consensus Estimate for first-quarter fiscal 2024 earnings per share is pegged at 33 cents, flat year over year. You can see the complete list of today’s Zacks #1 Rank stocks here.
Bath & Body Works’ top line is expected to decline year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $1.37 billion, which indicates a drop of 2.1% from the prior-year quarter. BBWI has a trailing four-quarter earnings surprise of 23.2%, on average.
American Eagle Outfitters (AEO - Free Report) currently has an Earnings ESP of +3.98% and a Zacks Rank #3. The company is likely to register an increase in the bottom line in first-quarter fiscal 2024. The Zacks Consensus Estimate for quarterly earnings per share of 28 cents suggests a jump of 64.7% from the year-ago quarter.
American Eagle Outfitters’ top line is anticipated to rise year over year. The consensus mark for revenues is pegged at $1.15 billion, which implies an increase of 6.2% from the year-ago quarter. AEO has a trailing four-quarter earnings surprise of 22.7%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.