We are almost at the end of Q3 earnings season, with results announced so far displaying an improvement from the dreary results of the preceding quarters. The quarter reported notable growth after five quarters of back-to-back decline. According to a recent Earnings Preview report, of the 476 S&P 500 members that have reported Q3 results as of Nov 18, 2016, 73.1% have posted positive earnings surprises and 55.5% have come ahead of top-line expectations.
Retailers operating brick-and-mortar stores have been witnessing a decline in footfall due to the increasing preference for online purchases. Nonetheless, higher consumer spending might help the retail sector to witness an improvement in the coming quarters.
Out of 36 retail companies on the S&P 500 index (43 in total), 61.1% have posted an earnings beat, while 44.4% surpassed revenue estimates. While total earnings for these 36 retailers were up 7.4% from the year-ago quarter, revenues increased 4.9%.
Let’s take a look at what’s in store for two major jewelry stocks which are scheduled to release their quarterly numbers on Nov 22.
We start with Signet Jewelers. (SIG - Free Report) which is scheduled to report fiscal third-quarter 2017 results before the opening bell. The company has an Earnings ESP of 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 19 cents. It carries a Zacks Rank #4 (Sell). We need to have a positive ESP as well as a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to be confident about a positive surprise. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Last quarter, this jewelry retailer posted a negative earnings surprise of 22.5%. The average of the last four trailing quarters stands at a negative surprise of 8.8%.
Next, let’s take a sneak peek at Movado Group, Inc. (MOV - Free Report) which is also slated to report fiscal third-quarter 2017 before market opens. The Zacks Consensus Estimate for third-quarter earnings is pegged at 71 cents. The company has an Earnings ESP of 0.00% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
While a favorable Zacks Rank increases the predictive power of ESP, a 0.00% ESP makes surprise prediction difficult. The average of the last four trailing quarters stands at a negative surprise of 3.5%.
Stay tuned! Check later on our full write-up on earnings releases of these stocks.
Confidential from Zacks
This week, Zacks researchers have named 7 other stocks that look to break out even sooner than today's Bull of the Day. You can see these time-sensitive tickers free, and access additional trades that are not available to the public. Simply click here>>