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Big 5 Sporting (BGFV) Q1 Earnings: What's in the Cards?
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Sporting goods retailer, Big 5 Sporting Goods Corporation (BGFV - Free Report) is all set to report first-quarter 2017 results, after the closing bell on May 2. The question lingering in investors’ minds is whether the company will be able to maintain its positive earnings streak in the to-be-reported quarter. In the trailing three quarters, Big 5 Sporting has outpaced the Zacks Consensus Estimate.
Moreover, we note that the stock has significantly outperformed the Zacks categorized Retail – Miscellaneous/Diversified industry in the past one month. While shares of Big 5 Sporting increased 12.2%, the industry gained 4.6%. In fact, the stock has also outdone the broader Retail-Wholesale sector’s rise of 4.8%.
Big 5 Sporting forms part of the Retail-Wholesale sector. As per the latest Earnings Preview, total earnings for the sector are estimated to decline 4.8%, while revenues are projected to improve 3.3%.
Let’s delve deeper how things are shaping up prior to this announcement.
Which Way are Estimates Treading?
Let’s look at earnings estimate revisions in order to get a clear picture of what analysts are thinking about the company right before earnings release. The Zacks Consensus Estimate of 14 cents and $1.11 for the first quarter and 2017 has increased 9 cents and 19 cents, respectively, in the past 60 days. However, of late the estimates have been stable. In the first quarter 2016, the company had reported loss of 2 cents. Analysts polled by Zacks expect revenues of $244.3 million, up nearly 4% from the year-ago quarter.
What the Zacks Model Unveils?
Our proven model does not conclusively show that Big 5 Sporting is likely to beat earnings estimates this quarter. This is because a stock needs to have both a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) and a positive Earnings ESP for this to happen. You may uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Big 5 Sporting has an Earnings ESP of -14.29%. This is because the Most Accurate estimate of 12 cents is lower than the Zacks Consensus Estimate of 14 cents. The company sports a Zacks Rank #1, which when combined with an ESP of -14.29%, makes an earnings surprise difficult to predict.
Factors Influencing the Quarter
Big 5 Sporting expects results to continue gaining from the closing of several rival stores in its markets that has led customers to acknowledge the ease of shopping at Big 5 Sporting given its wide range of product assortments and value. Moreover, the company has been focused on expanding store base and introducing technological advancements to enhance services for patrons.
For first-quarter 2017, the company anticipates comps to increase in the mid-single digit range. Further, it envisions earnings in the range of 12–18 cents per share.
Stiff competition and promotional challenges related to the industry consolidation remain major concerns for Big 5 Sporting. Furthermore, the company’s seasonal nature and risks related to sourcing merchandise from foreign countries may weigh upon performance.
Big 5 Sporting Goods Corporation Price, Consensus and EPS Surprise
Church & Dwight Co., Inc. (CHD - Free Report) currently has an Earnings ESP of +2.17% and a Zacks Rank #3.
Red Robin Gourmet Burgers, Inc. (RRGB - Free Report) currently has an Earnings ESP of +17.24% and a Zacks Rank #3.
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Big 5 Sporting (BGFV) Q1 Earnings: What's in the Cards?
Sporting goods retailer, Big 5 Sporting Goods Corporation (BGFV - Free Report) is all set to report first-quarter 2017 results, after the closing bell on May 2. The question lingering in investors’ minds is whether the company will be able to maintain its positive earnings streak in the to-be-reported quarter. In the trailing three quarters, Big 5 Sporting has outpaced the Zacks Consensus Estimate.
Moreover, we note that the stock has significantly outperformed the Zacks categorized Retail – Miscellaneous/Diversified industry in the past one month. While shares of Big 5 Sporting increased 12.2%, the industry gained 4.6%. In fact, the stock has also outdone the broader Retail-Wholesale sector’s rise of 4.8%.
Big 5 Sporting forms part of the Retail-Wholesale sector. As per the latest Earnings Preview, total earnings for the sector are estimated to decline 4.8%, while revenues are projected to improve 3.3%.
Let’s delve deeper how things are shaping up prior to this announcement.
Which Way are Estimates Treading?
Let’s look at earnings estimate revisions in order to get a clear picture of what analysts are thinking about the company right before earnings release. The Zacks Consensus Estimate of 14 cents and $1.11 for the first quarter and 2017 has increased 9 cents and 19 cents, respectively, in the past 60 days. However, of late the estimates have been stable. In the first quarter 2016, the company had reported loss of 2 cents. Analysts polled by Zacks expect revenues of $244.3 million, up nearly 4% from the year-ago quarter.
What the Zacks Model Unveils?
Our proven model does not conclusively show that Big 5 Sporting is likely to beat earnings estimates this quarter. This is because a stock needs to have both a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) and a positive Earnings ESP for this to happen. You may uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Big 5 Sporting has an Earnings ESP of -14.29%. This is because the Most Accurate estimate of 12 cents is lower than the Zacks Consensus Estimate of 14 cents. The company sports a Zacks Rank #1, which when combined with an ESP of -14.29%, makes an earnings surprise difficult to predict.
Factors Influencing the Quarter
Big 5 Sporting expects results to continue gaining from the closing of several rival stores in its markets that has led customers to acknowledge the ease of shopping at Big 5 Sporting given its wide range of product assortments and value. Moreover, the company has been focused on expanding store base and introducing technological advancements to enhance services for patrons.
For first-quarter 2017, the company anticipates comps to increase in the mid-single digit range. Further, it envisions earnings in the range of 12–18 cents per share.
Stiff competition and promotional challenges related to the industry consolidation remain major concerns for Big 5 Sporting. Furthermore, the company’s seasonal nature and risks related to sourcing merchandise from foreign countries may weigh upon performance.
Big 5 Sporting Goods Corporation Price, Consensus and EPS Surprise
Big 5 Sporting Goods Corporation Price, Consensus and EPS Surprise | Big 5 Sporting Goods Corporation Quote
Stocks Poised to Beat Earnings Estimates
Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
Amazon.com, Inc. (AMZN - Free Report) currently has an Earnings ESP of +4.90% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Church & Dwight Co., Inc. (CHD - Free Report) currently has an Earnings ESP of +2.17% and a Zacks Rank #3.
Red Robin Gourmet Burgers, Inc. (RRGB - Free Report) currently has an Earnings ESP of +17.24% and a Zacks Rank #3.
Looking for Ideas with Even Greater Upside?
Today's investment ideas are short-term, directly based on our proven 1 to 3 month indicator. In addition, I invite you to consider our long-term opportunities. These rare trades look to start fast with strong Zacks Ranks, but carry through with double and triple-digit profit potential. Starting now, you can look inside our home run, value, and stocks under $10 portfolios, plus more. Click here for a peek at this private information >>