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Will Zumiez (ZUMZ) Retain its Beat Streak in Q4 Earnings?

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Zumiez Inc. (ZUMZ - Free Report) is scheduled to report fourth-quarter fiscal 2018 results on Mar 14, after market close.

In the last reported quarter, the company delivered positive earnings surprise of 14.6%. This specialty retailer of action sports related apparel, footwear, equipment and accessories also posted average trailing four-quarter beat of 13.3%. Let’s see what awaits this quarterly release.

How are Estimates Faring?

The Zacks Consensus Estimate for fourth-quarter earnings is pegged at $1.11, mirroring a 35.4% increase of from the year-ago quarter. Notably, the consensus mark has moved up by a penny over the past 30 days. For revenues, the consensus mark stands at $306 million, reflecting a marginal decline of 0.7% from the year-ago quarter’s figure.

Zumiez Inc. Price, Consensus and EPS Surprise

Factors Likely to Drive Results

Zumiez remains focused on merchandising, integration of sales channels and the rollout of new customer engagement strategies. Also, the company is striving to expand its e-commerce and omni-channel platforms to provide consumers with the facility of quick and easy access to its products and brands. All these factors are likely to have a favorable impact on the to-be-reported quarter results.

Furthermore, the company considerably improved customers’ experience by integrating its physical and digital networks. This, in turn, allows customers to access inventories through all channels alongside availing facilities like buy online, pick up in store, reserve online and pay in store.

Zumiez’s robust comparable sales trend is an added positive. In fourth-quarter fiscal 2018, the company delivered solid comparable sales. The metric grew 3.9% in the fourth quarter, up from the company’s forecast of 3% growth. This marked its 10th straight quarter of positive comparable sales. Simultaneously, management projected its fourth-quarter net sales to be in the $295-$301 million range and earnings per share of $1.10-$1.12.

What Our Model Says

Our proven model shows that Zumiez is likely to beat earnings estimates in fourth-quarter fiscal 2018. A stock needs to have — a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — as well as a positive Earnings ESP — for this to happen. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zumiez has a Zacks Rank #2 and an Earnings ESP of +0.90%, which make us reasonably confident about an earnings beat.

Stocks With Favorable Combination

Here are some companies that you may want to consider as our model shows that these too have the right combination of elements to post earnings beat.

Tech Data Corporation (TECD - Free Report) has an Earnings ESP of +0.24% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Amazon.com, Inc. (AMZN - Free Report) has an Earnings ESP of +0.86% and a Zacks Rank #3.

The Michaels Companies, Inc. (MIK - Free Report) has an Earnings ESP of +0.70% and a Zacks Rank #3.

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