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Project CONNECT to Aid Columbia Sportswear (COLM) Q3 Earnings

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Columbia Sportswear Company (COLM - Free Report) is scheduled to report third-quarter 2019 results on Oct 30, after market close. This well-known lifestyle apparel, accessories and equipment’s company’s earnings have surpassed the Zacks Consensus Estimate in each of the trailing four quarters.

Let’s discuss what’s in store for the company this time around.

What to Expect?

The Zacks Consensus Estimate for third-quarter 2019 earnings has improved by a penny in the past seven days and is pegged at $1.55. The projected figure suggests an increase of nearly 10% from the year-ago quarter’s level.

The consensus mark for revenues is pegged at $881.5 million, which indicates an improvement of 10.8% from the prior-year quarter’s figure.

Columbia Sportswear Company Price, Consensus and EPS Surprise

 

 

Key Factors to Note

Prudent strategies to capture cost efficiencies along with robust international presence, strong brands and sturdy sales channels are likely to have benefited Columbia Sportswear in the third quarter.

Speaking of growth efforts, the Project CONNECT program is worth mentioning. The program aims at enhancing efficiencies and lowering SG&A costs, which in turn improves margins. To achieve this objective, the company focuses on strengthening relations with its key interest groups such as manufacturing partners, wholesale customers and international distributors. Additionally, the program emphasizes on boosting marketing capabilities. Synergies from this program are likely to have contributed favorably in the third quarter.

The company’s strong global direct-to-consumer (DTC) business sales channel has also been encouraging. In this channel, both brick-and-mortar and e-commerce businesses have been performing well. Apart from this, Columbia Sportswear’s well-chalked marketing initiatives have strengthened its presence in the apparel industry. Such upsides are also likely to show on the company’s third-quarter performance.

In the last earnings call, management guided low double-digit percentage increase in net sales and mid-to-high single digit growth in earnings per share for the third quarter.

What the Zacks Model Unveils

Our proven model predicts an earnings beat for Columbia Sportswear this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Columbia Sportswear sports a Zacks Rank #1 and an Earnings ESP of +1.57%.

Other Stocks Poised to Beat Earnings Estimates

Here are some other companies that you may want to consider, as our model shows that these also have the right combination to post an earnings beat:

lululemon athletica (LULU - Free Report) has an Earnings ESP of +1.08% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Under Armour (UAA - Free Report) has an Earnings ESP of +9.37% and a Zacks Rank #3.

Ralph Lauren (RL - Free Report) has an Earnings ESP of +0.67% and a Zacks Rank #3.

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