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Factors Setting the Tone for Blue Apron's (APRN) Q1 Earnings

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Blue Apron Holdings, Inc. (APRN - Free Report) is scheduled to release first-quarter 2020 results on Apr 29. The company delivered a negative earnings surprise of 7.1% in the last reported quarter. Nonetheless, it has outpaced the Zacks Consensus Estimate by 45.4%, on average, in the trailing four quarters.

The Zacks Consensus Estimate for first-quarter earnings is pegged at a loss of $1.28 per share. The company reported a loss of 45 cents in the year-ago quarter. The consensus mark has remained stable in the past 30 days.

Blue Apron Holdings, Inc. Price and EPS Surprise

Blue Apron Holdings, Inc. Price and EPS Surprise

 

Blue Apron Holdings, Inc. price-eps-surprise | Blue Apron Holdings, Inc. Quote

Key Factors

Blue Apron has been focused on optimizing operations and maintaining fiscal discipline. The company has been committed to launching new capabilities and testing new products. To this end, Meal Prep by Blue Apron has been helping the company expand the customer base. These actions along with cost-optimization efforts bode well.

However, in its last earnings call, management informed that it expects cash restructuring charges worth nearly $1.5 million in the first half of 2020, related to the company’s Arlington facility closure. In fact, it expects net loss of $22-$26 million in the first quarter, which includes charges associated with the closure. Also, the company expects adjusted EBITDA loss of $5-$7 million.
 
What the Zacks Model Unveils   

Our proven model does not conclusively predict an earnings beat for Blue Apron 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.

Blue Apron currently carries a Zacks Rank #2 but has an Earnings ESP of 0.00%.

Stocks With Favorable Combinations

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

Hain Celestial (HAIN - Free Report) has an Earnings ESP of +9.24% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Church & Dwight (CHD - Free Report) currently has an Earnings ESP of +3.56% and a Zacks Rank #2.

Kellogg (K - Free Report) currently has an Earnings ESP of +4.60% and a Zacks Rank of 2.

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