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Things to Consider Before Sally Beauty's (SBH) Q2 Earnings
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Sally Beauty Holdings, Inc. (SBH - Free Report) is likely to witness a year-over-year decline in the top and bottom lines when it reports second-quarter fiscal 2023 earnings on May 4, before market open. The Zacks Consensus Estimate for quarterly revenues is pegged at $889 million, indicating a decline of 2.5% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for quarterly earnings has remained unchanged in the past 30 days at 37 cents per share, indicating a decline of 21.3% from the figure reported in the prior-year quarter.
The international specialty retailer and distributor of professional beauty supplies reported earnings surprise of 6.8% in the last quarter. Sally Beauty has a negative trailing four-quarter earnings surprise of 1.1%, on average.
Sally Beauty Holdings, Inc. Price, Consensus and EPS Surprise
Sally Beauty has been experiencing sinking margin for a while now. It has also been facing downside from channel mix shift between stores and expanded Regis business. Also, due to its exposure in international markets, SBH is vulnerable to currency fluctuations.
Management expects net sales for fiscal 2023 to decline in low-single digits, reflecting 150-200 basis points of net unfavorable impact owing to store closures and expected sales recapture rates from optimization efforts.
Apart from this, Sally Beauty has been grappling with escalated selling, general and administrative expenses for a while. The persistence of such trends is likely to have put pressure on the company’s performance in the second quarter of fiscal 2023.
That being said, focus on strategic growth pillars, which include enhancing customer centricity, growing high-margin-owned brands and carrying out innovations while increasing the efficiency of operations and optimizing its capabilities, is a breather. It has also been undertaking a number of efforts to augment its robust omnichannel platform.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Sally Beauty 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.
Sally Beauty currently carries a Zacks Rank #3 (Hold) and has an Earnings ESP of -6.25%.
Some Stocks With a Favorable Combination
Here are some companies that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat.
Ross Stores (ROST - Free Report) currently has an Earnings ESP of +0.94% and a Zacks Rank of 2. The company is likely to register top- and bottom-line growth when it reports first-quarter fiscal 2023 results on May 18. The consensus mark for ROST’s quarterly revenues is pegged at $4.5 billion, which suggests growth of 3.9% from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Ross Stores’ earnings has remained unchanged at $1.06 per share in the past 30 days, suggesting growth of 9.3% from the figure reported in the year-ago quarter. ROST has a trailing four-quarter earnings surprise of 10.3%, on average.
DICK'S Sporting Goods (DKS - Free Report) currently has an Earnings ESP of +4.43% and a Zacks Rank of 2. The company is likely to register growth in the top and bottom lines when it reports first-quarter fiscal 2023 numbers. The consensus mark for DKS’ quarterly earnings has moved up 6 cents in the past 30 days to $3.18 per share, suggesting growth of 11.6% from the figures reported in the year-ago quarter.
The Zacks Consensus Estimate for DICK'S quarterly revenues is pegged at $2.8 billion, which suggests growth of 4.7% from the figure reported in the prior-year quarter. DKS has a trailing four-quarter earnings surprise of 10%, on average.
BJ's Wholesale Club Holdings, Inc. (BJ - Free Report) has an Earnings ESP of +6.76% and a Zacks Rank #2 at present. The company is expected to report first-quarter fiscal 2023 results on May 23. The Zacks Consensus Estimate for its quarterly revenues is pegged at $4.8 billion, which suggests growth of 6.8% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for BJ Wholesales’ quarterly earnings has remained unchanged in the past 30 days at 84 cents per share, suggesting a decline of 3.5% from the year-ago quarter’s reported number. BJ has a trailing four-quarter earnings surprise of 19.6%, on average.
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Things to Consider Before Sally Beauty's (SBH) Q2 Earnings
Sally Beauty Holdings, Inc. (SBH - Free Report) is likely to witness a year-over-year decline in the top and bottom lines when it reports second-quarter fiscal 2023 earnings on May 4, before market open. The Zacks Consensus Estimate for quarterly revenues is pegged at $889 million, indicating a decline of 2.5% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for quarterly earnings has remained unchanged in the past 30 days at 37 cents per share, indicating a decline of 21.3% from the figure reported in the prior-year quarter.
The international specialty retailer and distributor of professional beauty supplies reported earnings surprise of 6.8% in the last quarter. Sally Beauty has a negative trailing four-quarter earnings surprise of 1.1%, on average.
Sally Beauty Holdings, Inc. Price, Consensus and EPS Surprise
Sally Beauty Holdings, Inc. price-consensus-eps-surprise-chart | Sally Beauty Holdings, Inc. Quote
Things to Consider
Sally Beauty has been experiencing sinking margin for a while now. It has also been facing downside from channel mix shift between stores and expanded Regis business. Also, due to its exposure in international markets, SBH is vulnerable to currency fluctuations.
Management expects net sales for fiscal 2023 to decline in low-single digits, reflecting 150-200 basis points of net unfavorable impact owing to store closures and expected sales recapture rates from optimization efforts.
Apart from this, Sally Beauty has been grappling with escalated selling, general and administrative expenses for a while. The persistence of such trends is likely to have put pressure on the company’s performance in the second quarter of fiscal 2023.
That being said, focus on strategic growth pillars, which include enhancing customer centricity, growing high-margin-owned brands and carrying out innovations while increasing the efficiency of operations and optimizing its capabilities, is a breather. It has also been undertaking a number of efforts to augment its robust omnichannel platform.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Sally Beauty 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.
Sally Beauty currently carries a Zacks Rank #3 (Hold) and has an Earnings ESP of -6.25%.
Some Stocks With a Favorable Combination
Here are some companies that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat.
Ross Stores (ROST - Free Report) currently has an Earnings ESP of +0.94% and a Zacks Rank of 2. The company is likely to register top- and bottom-line growth when it reports first-quarter fiscal 2023 results on May 18. The consensus mark for ROST’s quarterly revenues is pegged at $4.5 billion, which suggests growth of 3.9% from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Ross Stores’ earnings has remained unchanged at $1.06 per share in the past 30 days, suggesting growth of 9.3% from the figure reported in the year-ago quarter. ROST has a trailing four-quarter earnings surprise of 10.3%, on average.
DICK'S Sporting Goods (DKS - Free Report) currently has an Earnings ESP of +4.43% and a Zacks Rank of 2. The company is likely to register growth in the top and bottom lines when it reports first-quarter fiscal 2023 numbers. The consensus mark for DKS’ quarterly earnings has moved up 6 cents in the past 30 days to $3.18 per share, suggesting growth of 11.6% from the figures reported in the year-ago quarter.
The Zacks Consensus Estimate for DICK'S quarterly revenues is pegged at $2.8 billion, which suggests growth of 4.7% from the figure reported in the prior-year quarter. DKS has a trailing four-quarter earnings surprise of 10%, on average.
BJ's Wholesale Club Holdings, Inc. (BJ - Free Report) has an Earnings ESP of +6.76% and a Zacks Rank #2 at present. The company is expected to report first-quarter fiscal 2023 results on May 23. The Zacks Consensus Estimate for its quarterly revenues is pegged at $4.8 billion, which suggests growth of 6.8% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for BJ Wholesales’ quarterly earnings has remained unchanged in the past 30 days at 84 cents per share, suggesting a decline of 3.5% from the year-ago quarter’s reported number. BJ has a trailing four-quarter earnings surprise of 19.6%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.