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Arhaus (ARHS) Gears Up to Post Q3 Earnings: Is a Beat in Store?
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Arhaus, Inc. (ARHS - Free Report) is likely to register a year-over-year decline in its top and bottom lines when it releases third-quarter 2023 earnings on Nov 2 before market open.
The Zacks Consensus Estimate for revenues is pegged at $313.4 million, indicating a fall of 2.1% from the prior-year reported figure.
The bottom line of the company is anticipated to have declined year over year. The Zacks Consensus Estimate for third-quarter earnings per share has declined by a penny to 11 cents over the past 30 days. The figure suggests a decline of 59.3% from the year-ago period’s reported number.
The company has a trailing four-quarter earnings surprise of 46.6%, on average. In the last reported quarter, ARHS beat the Zacks Consensus Estimate by a margin of 11.5%.
Factors to Note
Arhaus is anticipated to have benefited from robust demand for products, a strong backlog and strength across its showroom and e-commerce channels in the third quarter. The company’s investments in product development, marketing and omnichannel & technology capabilities are likely to have enhanced its performance and supported growth.
The company’s focus on expanding brand assortments, introducing an innovative line of products and effective inventory management are likely to have boosted its performance in the third quarter. Also, its digital initiatives, along with its focus on operational execution and cost-control measures, are likely to have supported its performance.
Arhaus’ efforts to expand into new markets with investments in showrooms and strategic partnerships are expected to have been tailwinds in the quarter under review. Also, the supply chain normalization is likely to have improved order deliveries, augmenting its performance in the to-be-reported quarter.
ARHS’ debt-free, solid balance sheet is likely to have enabled it to navigate the prevalent macroeconomic backdrop while executing its growth strategy in the to-be-reported quarter. For instance, the company exited the second quarter of 2023 with cash and cash equivalents of $177 million and no long-term debt.
That said, the company has been grappling with rising costs and expenses over time. In the first two quarters of 2023, the company’s cost of sales and selling, general and administrative expenses increased by 8.5% and 7.2%, respectively, on a year-over-year basis. Any deleverage in operating expenses might have hurt ARHS’ margins and profitability in the quarter under review.
Zacks Model
Our proven model predicts an earnings beat for Arhaus 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. That is the case here.
Arhaus has an Earnings ESP of +18.18%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
The company carries a Zacks Rank #3 at present.
Stocks With the Favorable Combination
Here are three other companies that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat in the upcoming release:
Performance Food Group Company (PFGC - Free Report) currently has an Earnings ESP of +3.13% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here. The company is expected to report bottom-line growth when it releases its quarterly results. The Zacks Consensus Estimate for earnings is pinned at $1.11 per share, indicating an increase of 2.8% from the year-ago quarter’s reported level.
Its revenues are anticipated to have improved year over year. The consensus mark for the same is pegged at $15 billion, implying a 1.9% increase from that reported in the prior-year period. PFGC has a trailing four-quarter average earnings surprise of 15.9%.
Ulta Beauty (ULTA - Free Report) currently has an Earnings ESP of +2.19% and a Zacks Rank #3. The company is expected to register a bottom-line decline when it reports third-quarter fiscal 2023 results. The Zacks Consensus Estimate for earnings is pinned at $4.98 per share, indicating a fall of 6.7% from the year-ago quarter’s reported number.
The company’s revenues are anticipated to have increased year over year. The consensus mark for the same is pegged at $2.5 billion, indicating growth of 6.1% from that reported in the year-ago quarter. ULTA has a trailing four-quarter average earnings surprise of 12.9%.
CVS Health (CVS - Free Report) currently has an Earnings ESP of +0.98% and a Zacks Rank #3. CVS is likely to record top-line growth when it reports second-quarter 2023 results.
The Zacks Consensus Estimate for revenues is pegged at $88.2 billion, indicating an 8.7% improvement from the prior-year quarter’s actual. The consensus mark for earnings is pinned at $2.13 per share, implying a 1.9% increase from that reported in the year-ago quarter. It has a trailing four-quarter earnings surprise of 4.8%, on average.
Image: Bigstock
Arhaus (ARHS) Gears Up to Post Q3 Earnings: Is a Beat in Store?
Arhaus, Inc. (ARHS - Free Report) is likely to register a year-over-year decline in its top and bottom lines when it releases third-quarter 2023 earnings on Nov 2 before market open.
The Zacks Consensus Estimate for revenues is pegged at $313.4 million, indicating a fall of 2.1% from the prior-year reported figure.
The bottom line of the company is anticipated to have declined year over year. The Zacks Consensus Estimate for third-quarter earnings per share has declined by a penny to 11 cents over the past 30 days. The figure suggests a decline of 59.3% from the year-ago period’s reported number.
The company has a trailing four-quarter earnings surprise of 46.6%, on average. In the last reported quarter, ARHS beat the Zacks Consensus Estimate by a margin of 11.5%.
Factors to Note
Arhaus is anticipated to have benefited from robust demand for products, a strong backlog and strength across its showroom and e-commerce channels in the third quarter. The company’s investments in product development, marketing and omnichannel & technology capabilities are likely to have enhanced its performance and supported growth.
The company’s focus on expanding brand assortments, introducing an innovative line of products and effective inventory management are likely to have boosted its performance in the third quarter. Also, its digital initiatives, along with its focus on operational execution and cost-control measures, are likely to have supported its performance.
Arhaus’ efforts to expand into new markets with investments in showrooms and strategic partnerships are expected to have been tailwinds in the quarter under review. Also, the supply chain normalization is likely to have improved order deliveries, augmenting its performance in the to-be-reported quarter.
ARHS’ debt-free, solid balance sheet is likely to have enabled it to navigate the prevalent macroeconomic backdrop while executing its growth strategy in the to-be-reported quarter. For instance, the company exited the second quarter of 2023 with cash and cash equivalents of $177 million and no long-term debt.
That said, the company has been grappling with rising costs and expenses over time. In the first two quarters of 2023, the company’s cost of sales and selling, general and administrative expenses increased by 8.5% and 7.2%, respectively, on a year-over-year basis. Any deleverage in operating expenses might have hurt ARHS’ margins and profitability in the quarter under review.
Zacks Model
Our proven model predicts an earnings beat for Arhaus 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. That is the case here.
Arhaus, Inc. Price and EPS Surprise
Arhaus, Inc. price-eps-surprise | Arhaus, Inc. Quote
Arhaus has an Earnings ESP of +18.18%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
The company carries a Zacks Rank #3 at present.
Stocks With the Favorable Combination
Here are three other companies that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat in the upcoming release:
Performance Food Group Company (PFGC - Free Report) currently has an Earnings ESP of +3.13% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here. The company is expected to report bottom-line growth when it releases its quarterly results. The Zacks Consensus Estimate for earnings is pinned at $1.11 per share, indicating an increase of 2.8% from the year-ago quarter’s reported level.
Its revenues are anticipated to have improved year over year. The consensus mark for the same is pegged at $15 billion, implying a 1.9% increase from that reported in the prior-year period. PFGC has a trailing four-quarter average earnings surprise of 15.9%.
Ulta Beauty (ULTA - Free Report) currently has an Earnings ESP of +2.19% and a Zacks Rank #3. The company is expected to register a bottom-line decline when it reports third-quarter fiscal 2023 results. The Zacks Consensus Estimate for earnings is pinned at $4.98 per share, indicating a fall of 6.7% from the year-ago quarter’s reported number.
The company’s revenues are anticipated to have increased year over year. The consensus mark for the same is pegged at $2.5 billion, indicating growth of 6.1% from that reported in the year-ago quarter. ULTA has a trailing four-quarter average earnings surprise of 12.9%.
CVS Health (CVS - Free Report) currently has an Earnings ESP of +0.98% and a Zacks Rank #3. CVS is likely to record top-line growth when it reports second-quarter 2023 results.
The Zacks Consensus Estimate for revenues is pegged at $88.2 billion, indicating an 8.7% improvement from the prior-year quarter’s actual. The consensus mark for earnings is pinned at $2.13 per share, implying a 1.9% increase from that reported in the year-ago quarter. It has a trailing four-quarter earnings surprise of 4.8%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.