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How Burlington Stores (BURL) Looks Just Ahead of Q4 Earnings

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Burlington Stores, Inc. (BURL - Free Report) is slated to release fourth-quarter fiscal 2019 results on Mar 5, before market open. Notably, it has a positive earnings surprise of 7.6% for the trailing four quarters, on average. If all goes well, the quarter will mark the third straight earnings beat for the company.

The Zacks Consensus Estimate for fourth-quarter earnings is currently pegged at $3.22, indicating an improvement of 13.8% from the year-ago quarter figure. We note that the Zacks Consensus Estimate has moved north by 4 cents in the past 30 days. For quarterly revenues, the consensus estimate is pegged at $2,206 million, suggesting growth of about 10% from the year-ago quarter’s reported number.

Burlington Stores, Inc. Price and EPS Surprise


Burlington Stores, Inc. Price and EPS Surprise

Burlington Stores, Inc. price-eps-surprise | Burlington Stores, Inc. Quote

Key Factors to Note

Burlington Stores has been strengthening vendor counts, making technological advancements, initiating a better marketing approach and focusing on localized assortments. The company has been concentrating on underpenetrated categories, particularly home, beauty, toys and gifts, to make the business less weather sensitive. Moreover, it has been gradually expanding store fleet. Also, its efforts to contain costs and manage inventory bode well. These endeavors are likely to have boosted the company’s top and bottom lines in the fiscal fourth quarter.

Last month, management raised sales and earnings view for the quarter to be reported. Sales are projected to grow 10.5%, up from 9-10% rise mentioned earlier. Comps are likely to improve 3.9% in the quarter under review, emerging as the 28th successive quarter of growth. The Zacks Consensus Estimate for comps growth is pegged at 3.6%. Further, adjusted earnings per share are estimated to be $3.21-$3.23, indicating growth of 13-14% from the prior-year quarter’s reported number.

While these tailwinds raise optimism, we cannot ignore the impact of stiff competition from discount retailers and other pure e-commerce players on the top line. Any deleverage in SG&A expenses and increase in freight costs also cannot be ruled out. This may get reflected in its fiscal fourth-quarter margin results.

What the Zacks Model Unveils

Our proven model predicts an earnings beat for Burlington Stores this time around. 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.

Burlington Stores has a Zacks Rank #2 and an Earnings ESP of +0.02%.

Other Stocks With a Favorable Combination

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

G-III Apparel Group GIII has an Earnings ESP of +2.71% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Costco COST has an Earnings ESP of +0.20% and a Zacks Rank #2.

Ross Stores, Inc. ROST has an Earnings ESP of +0.09% and a Zacks Rank #3.

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