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Strategic Plans to Benefit YETI Holdings' (YETI) Q4 Earnings

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YETI Holdings, Inc. (YETI - Free Report) is scheduled to report fourth-quarter 2019 results on Feb 13, before market open.

In the last reported quarter, the company’s adjusted earnings and net sales topped the Zacks Consensus Estimate by 15.4% and 2.9%, respectively. Also, on a year-over-year basis, the metrics improved 25% and 16.8%, respectively, backed by a strong new product lineup and expanded gross margins.

Key Projections

The Zacks Consensus Estimate for YETI Holdings’ fourth-quarter earnings is pegged at 43 cents per share, indicating a 13.2% increase from the prior-year reported figure of 38 cents. The consensus estimate for net sales is pegged at $279.03 million, suggesting a 15.7% improvement from the year-ago reported figure.

YETI Holdings, Inc. Price and EPS Surprise

YETI Holdings, Inc. Price and EPS Surprise

YETI Holdings, Inc. price-eps-surprise | YETI Holdings, Inc. Quote

Factors Influencing Results

YETI Holdings’ high-quality product pipeline, strong brand presence and robust supply chain are expected to reflect on fourth-quarter results. The company’s robust growth across categories and channels has been driving revenue growth. Its Wholesale segment is likely to have kept its momentum alive in the quarter to be reported. Also, the direct-to-consumer business has been a major growth driver for the company.

The upcoming quarterly results are also likely to benefit from robust performance of Drinkware, and Coolers & Equipment categories.

Its four strategic growth drivers — namely increase in the customer base, introduction of products, acceleration of direct-to-consumer and international expansion — are commendable.

We believe that cost improvements across its portfolios and favorable shift in the channel mix are likely to have driven earnings in fourth-quarter 2019, despite tariffs and currency headwinds.

What Our Quantitative Model Predicts

Our proven model predicts an earnings beat for YETI Holdings this time around. A 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.

Earnings ESP: YETI Holdings has an Earnings ESP of +4.65%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: It currently carries a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Other Stocks Worth a Look

Here are some other companies in the Zacks Consumer Discretionary sector, which according to our model have the right combination of elements to post an earnings beat in their respective quarters to be reported.

Mattel, Inc. (MAT - Free Report) has an Earnings ESP of +850.00% and holds a Zacks Rank #3.

Crocs, Inc. (CROX - Free Report) has an Earnings ESP of +30.00% and carries a Zacks Rank #3.

WW International, Inc. (WW - Free Report) has an Earnings ESP of +13.98% and carries a Zacks Rank #2.

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