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Factors to Know Ahead of Canada Goose's (GOOS) Q2 Earnings

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Canada Goose Holdings Inc. (GOOS - Free Report) is scheduled to report second-quarter fiscal 2020 results on Nov 13, before the opening bell.

Notably, the company’s earnings significantly outperformed the Zacks Consensus Estimate in the trailing four quarters. In the last reported quarter, it witnessed a positive earnings surprise of 5.9%.

The Zacks Consensus Estimate for fiscal second-quarter earnings is pegged at 35 cents, which suggests no movement from the year-ago reported figure. Notably, estimates have been unchanged over the past 30 days. For revenues, the consensus mark is pinned at $201.5 million, indicating a 14.4% improvement from the year-ago period’s reported figure.

Canada Goose Holdings Inc. Price and EPS Surprise

 

Key Factors to Note

Canada Goose has been gaining from strong wholesale demand internationally, with Japan acting as a major growth driver in Asia. Further, the company remains focused on building production capacity. In this regard, its Montreal facility, which has been opened recently, is likely to have aided wholesale order shipments in the fiscal second quarter.

The company has been boosting traffic and expanding the base. Moreover, solid performance for the direct-to-consumer (“DTC”) channel is likely to have contributed to its top line in the fiscal second quarter. On its first earnings call, management had projected continuation of the positive momentum in non-parka categories in the fiscal second quarter.

However, the company has been witnessing elevated SG&A costs for the past few quarters due to increased investments in marketing and store openings. This might have affected the bottom line in the quarter under review.

Zacks Model

Our proven model doesn’t conclusively predict an earnings beat for Canada Goose this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Although Canada Goose carries a Zacks Rank #3, its Earnings ESP of 0.00% makes surprise prediction difficult.

Stocks With Favorable Combination

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

Dollar General (DG - Free Report) has an Earnings ESP of +2.34% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stitch Fix (SFIX - Free Report) currently has an Earnings ESP of +6.67% and a Zacks Rank #3.

Foot Locker (FL - Free Report) presently has an Earnings ESP of +0.64% and a Zacks Rank #3.

5 Stocks Set to Double

Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

Today, See These 5 Potential Home Runs >>

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