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Things to Know Ahead of Ross Stores' (ROST) Q4 Earnings
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Ross Stores, Inc. (ROST - Free Report) is scheduled to release fourth-quarter fiscal 2020 results on Mar 2. This off-price retailer of apparel and home accessories is likely to have witnessed revenue and earnings declines in the to-be-reported quarter.
The Zacks Consensus Estimate for fiscal fourth-quarter earnings of $1.03 per share suggests a decrease of 19.5% from the year-ago quarter’s reported figure of $1.28. However, the consensus mark moved up 0.9% in the past 30 days. Further, the consensus mark for revenues is pegged at $4,305 million, indicating a decline of 2.8% from the figure reported in the year-ago quarter.
In the last reported quarter, the company delivered an earnings surprise of 61.9%. However, it delivered a negative earnings surprise of 669.6%, on average, in the trailing four quarters.
Ross Stores continues to reel under adverse impacts of the COVID-19 situation. Further, it has been witnessing costs related to COVID-19 and lower packaway levels. In its last earnings call, management envisioned COVID-19-related expenses to be significantly higher in the fiscal fourth quarter on a sequential basis due to the impacts of industry-wide capacity constraints and congestion as well as wage and incentive actions in the supply chain and stores. Apart from these, higher freight costs have been concerning.
However, the company has been gaining from strength in Ross’ home category and solid regional performance. Moreover, accelerated gains at dd's DISCOUNTS’ value offerings driven by positive customer response bode well. It also remains on track with its store expansion efforts, which are likely to have provided some cushion to the top line.
Zacks Model
Our proven model does not conclusively predict an earnings beat for Ross 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 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.
Ross Stores has a Zacks Rank #3 but an Earnings ESP of -2.28%.
Stocks With Favorable Combination
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:
Target Corporation (TGT - Free Report) currently has an Earnings ESP of +2.66% and a Zacks Rank #2, at present.
DICK’S Sporting Goods (DKS - Free Report) currently has an Earnings ESP of +3.70% and a Zacks Rank #2.
+1,500% Growth: One of 2021’s Most Exciting Investment Opportunities
In addition to the stocks you read about above, would you like to see Zacks’ top picks to capitalize on the Internet of Things (IoT)? It is one of the fastest-growing technologies in history, with an estimated 77 billion devices to be connected by 2025. That works out to 127 new devices per second.
Zacks has released a special report to help you capitalize on the Internet of Things’s exponential growth. It reveals 4 under-the-radar stocks that could be some of the most profitable holdings in your portfolio in 2021 and beyond.
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Things to Know Ahead of Ross Stores' (ROST) Q4 Earnings
Ross Stores, Inc. (ROST - Free Report) is scheduled to release fourth-quarter fiscal 2020 results on Mar 2. This off-price retailer of apparel and home accessories is likely to have witnessed revenue and earnings declines in the to-be-reported quarter.
The Zacks Consensus Estimate for fiscal fourth-quarter earnings of $1.03 per share suggests a decrease of 19.5% from the year-ago quarter’s reported figure of $1.28. However, the consensus mark moved up 0.9% in the past 30 days. Further, the consensus mark for revenues is pegged at $4,305 million, indicating a decline of 2.8% from the figure reported in the year-ago quarter.
In the last reported quarter, the company delivered an earnings surprise of 61.9%. However, it delivered a negative earnings surprise of 669.6%, on average, in the trailing four quarters.
Ross Stores, Inc. Price and EPS Surprise
Ross Stores, Inc. price-eps-surprise | Ross Stores, Inc. Quote
Factors to Note
Ross Stores continues to reel under adverse impacts of the COVID-19 situation. Further, it has been witnessing costs related to COVID-19 and lower packaway levels. In its last earnings call, management envisioned COVID-19-related expenses to be significantly higher in the fiscal fourth quarter on a sequential basis due to the impacts of industry-wide capacity constraints and congestion as well as wage and incentive actions in the supply chain and stores. Apart from these, higher freight costs have been concerning.
However, the company has been gaining from strength in Ross’ home category and solid regional performance. Moreover, accelerated gains at dd's DISCOUNTS’ value offerings driven by positive customer response bode well. It also remains on track with its store expansion efforts, which are likely to have provided some cushion to the top line.
Zacks Model
Our proven model does not conclusively predict an earnings beat for Ross 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 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.
Ross Stores has a Zacks Rank #3 but an Earnings ESP of -2.28%.
Stocks With Favorable Combination
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:
Abercrombie & Fitch (ANF - Free Report) currently has an Earnings ESP of +4.93% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Target Corporation (TGT - Free Report) currently has an Earnings ESP of +2.66% and a Zacks Rank #2, at present.
DICK’S Sporting Goods (DKS - Free Report) currently has an Earnings ESP of +3.70% and a Zacks Rank #2.
+1,500% Growth: One of 2021’s Most Exciting Investment Opportunities
In addition to the stocks you read about above, would you like to see Zacks’ top picks to capitalize on the Internet of Things (IoT)? It is one of the fastest-growing technologies in history, with an estimated 77 billion devices to be connected by 2025. That works out to 127 new devices per second.
Zacks has released a special report to help you capitalize on the Internet of Things’s exponential growth. It reveals 4 under-the-radar stocks that could be some of the most profitable holdings in your portfolio in 2021 and beyond.
Click here to download this report FREE >>