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Black Diamond (BDE) Q4 Earnings: What Awaits the Stock?
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Black Diamond, Inc. is scheduled to report fourth-quarter and full-year 2016 numbers on Mar 6, after market close.
Last quarter, this manufacturer and distributor of outdoor recreation equipment and active lifestyle products posted a momentous 700.00% positive earnings surprise. Moreover, the trailing-four quarter average earnings surprise stands at a positive 56.25%.
Let’s see how things are shaping up for this announcement.
Black Diamond is a sporting goods company, which follows strategies like streamlining of manufacturing processes and overhead cost reduction. These should boost the quarter’s performance. Meanwhile, healthy demand for the company’s climbing and mountain equipment across all geographic regions, particularly in North America, should drive fourth-quarter results.
Moreover, Black Diamond’s independent global distributor business is likely to experience growth in the quarter, as markets like Japan and Korea have begun to replenish their inventory following a period of industry consolidation and other market headwinds.
However, the company has been reporting a year-over-year decline in sales and gross margin primarily due to negative currency translations, a trend not likely to change in the to-be-reported quarter.
In fact, a tough retail environment is also likely to further keep revenues under pressure. In addition, higher costs associated with the manufacturing activities that Black Diamond has been repatriating from China to the U.S. could further impact gross margin.
Earnings Whispers
Our proven model does not conclusively show that Black Diamond is likely to beat the Zacks Consensus Estimate this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. Unfortunately, that is not the case here as elaborated below.
Zacks ESP: Black Diamond has an Earnings ESP of 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 6 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Black Diamond sports a Zacks Rank #1, which increases the predictive power of ESP. However, the company’s 0.00% ESP makes surprise prediction difficult.
Notably, we caution you against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are some companies to consider as our model shows they have the right combination of elements to post an earnings beat this quarter:
Tailored Brands, Inc. has an Earnings ESP of +9.09% and a Zacks Rank #2.
Peak Resorts, Inc. has an Earnings ESP of +3.51% and a Zacks Rank #3.
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How would you like to see our best recommendations to help you find today’s most promising long-term stocks? Starting now, you can look inside our portfolios featuring stocks under $10, income stocks, value investments and more. These picks, which have double and triple-digit profit potential, are rarely available to the public. But you can see them now. Click here >>
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Black Diamond (BDE) Q4 Earnings: What Awaits the Stock?
Black Diamond, Inc. is scheduled to report fourth-quarter and full-year 2016 numbers on Mar 6, after market close.
Last quarter, this manufacturer and distributor of outdoor recreation equipment and active lifestyle products posted a momentous 700.00% positive earnings surprise. Moreover, the trailing-four quarter average earnings surprise stands at a positive 56.25%.
Let’s see how things are shaping up for this announcement.
Black Diamond, Inc. Price and EPS Surprise
Black Diamond, Inc. Price and EPS Surprise | Black Diamond, Inc. Quote
Factors Likely to Influence this Quarter
Black Diamond is a sporting goods company, which follows strategies like streamlining of manufacturing processes and overhead cost reduction. These should boost the quarter’s performance. Meanwhile, healthy demand for the company’s climbing and mountain equipment across all geographic regions, particularly in North America, should drive fourth-quarter results.
Moreover, Black Diamond’s independent global distributor business is likely to experience growth in the quarter, as markets like Japan and Korea have begun to replenish their inventory following a period of industry consolidation and other market headwinds.
However, the company has been reporting a year-over-year decline in sales and gross margin primarily due to negative currency translations, a trend not likely to change in the to-be-reported quarter.
In fact, a tough retail environment is also likely to further keep revenues under pressure. In addition, higher costs associated with the manufacturing activities that Black Diamond has been repatriating from China to the U.S. could further impact gross margin.
Earnings Whispers
Our proven model does not conclusively show that Black Diamond is likely to beat the Zacks Consensus Estimate this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. Unfortunately, that is not the case here as elaborated below.
Zacks ESP: Black Diamond has an Earnings ESP of 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 6 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Black Diamond sports a Zacks Rank #1, which increases the predictive power of ESP. However, the company’s 0.00% ESP makes surprise prediction difficult.
Notably, we caution you against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are some companies to consider as our model shows they have the right combination of elements to post an earnings beat this quarter:
Camping World Holdings, Inc. (CWH - Free Report) has an Earnings ESP of +37.50% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Tailored Brands, Inc. has an Earnings ESP of +9.09% and a Zacks Rank #2.
Peak Resorts, Inc. has an Earnings ESP of +3.51% and a Zacks Rank #3.
Zacks' Top Investment Ideas for Long-Term Profit
How would you like to see our best recommendations to help you find today’s most promising long-term stocks? Starting now, you can look inside our portfolios featuring stocks under $10, income stocks, value investments and more. These picks, which have double and triple-digit profit potential, are rarely available to the public. But you can see them now. Click here >>