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Factors Setting the Tone for Guess?'s (GES) Q1 Earnings

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Guess?, Inc. (GES - Free Report) is likely to witness deterioration in the top and bottom lines when it reports first-quarter fiscal 2021 results. The Zacks Consensus Estimate for the first quarter is currently pegged at a loss of 88 cents per share, which suggests deterioration from a loss of 25 cents reported in the year-ago quarter. The consensus mark for loss has remained unchanged in the past 30 days. Further, the consensus mark for revenues is pegged at $319.8 million, which indicates a decline of 40.4% from the year-ago period’s reported figure.

Notably, Guess? has a trailing four-quarter positive earnings surprise of 14.9%, on average.

Guess, Inc. Price and EPS Surprise

 

Guess, Inc. Price and EPS Surprise

Guess, Inc. price-eps-surprise | Guess, Inc. Quote


Key Factors to Note

Due to the coronavirus outbreak, Guess? had temporarily closed all its stores across the United States and Canada effective Mar 17. Also, company-operated stores in various countries across Europe had been shut amid the pandemic. COVID-19 induced store closures are likely to have marred the company’s performance in the fiscal first quarter. In a recent press release, management highlighted that the company has been supporting its employees with monetary and other benefits. Notably, such rise in employee-related costs is likely to have put pressure on the company’s bottom line in the to-be-reported quarter.

Apart from these, Guess? has been witnessing sluggishness in Asia and Americas Retail for a while now. Also, higher SG&A expenses and unfavorable currency rates are a threat.

Nevertheless, Guess? has been on track with its digital-first initiative and has been investing in brand building through social media platforms. In fact, the company’s e-commerce business via the Guess, Marciano, Guess Factory and gbyguess websites has been operational amid the outbreak.

What the Zacks Model Unveils

Our proven model predicts an earnings beat for Guess? 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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Guess? carries a Zacks Rank #2 and an Earnings ESP of +12.75%.

Other Stocks With Favorable Combinations

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

BJs Wholesale Club Holdings, Inc. (BJ - Free Report) has an Earnings ESP of +1.61% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Electronic Arts Inc. (EA - Free Report) has an Earnings ESP of +4.43% and a Zacks Rank #2.

DISH Network Corporation has an Earnings ESP of +7.15% and a Zacks Rank #3.

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