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In the last reported quarter, the company’s earnings and net sales topped the Zacks Consensus Estimate by 5% and 1.6%, respectively. The metrics increased 80.4% and 0.6% year over year, respectively.
CULP’s earnings topped the consensus mark in all of the trailing four quarters, the positive surprise being 15%, on average.
The Trend in Estimate Revision
For the quarter to be reported, the Zacks Consensus Estimate for earnings per share remained stable at a loss of 16 cents in the past 30 days. The estimated figure indicates an improvement of 76.5% from the year-ago quarter’s loss of 68 cents.
The consensus mark for net sales is pegged at $59 million, suggesting a 12.3% rise from the year-ago reported figure.
Key Factors to Note
Culp’s fiscal third-quarter net sales are expected to increase year over year, propelled by its strong market position, innovative product offerings and creative designs. Also, a resilient global manufacturing and sourcing platform, strong leadership teams and focused financial management are likely to have aided the company’s performance in the to-be-reported quarter.
The company anticipates consolidated net sales for the third quarter to be in line with the second quarter and moderately higher compared with the prior-year period’s levels.
Despite the current demand backdrop, Culp expects to continue on a path of sequential and year-over-year operating improvement, including a return to positive adjusted EBITDA in the third quarter. For the to-be-reported quarter, the company expects consolidated operating loss to be in the range of $1.2-$1.6 million. This marks a significant improvement compared with the $7.8 million operating loss in the prior-year period.
The bottom line is likely to have benefited from enhanced operating efficiencies, a positive product mix and reduced costs resulting from restructuring and rationalization in specific units.
However, persistent challenges in the domestic mattress and residential home furnishings industries are likely to have impacted the upholstery fabrics segment in the to-be-reported quarter. The ongoing impact of current macroeconomic conditions, influencing consumer spending and demand trends, is another concern.
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for Culp this time. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. This is not the case here, as elaborated below.
Earnings ESP: The company has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Norwegian Cruise Line Holdings Ltd. (NCLH - Free Report) reported fourth-quarter 2023 results, with earnings and revenues missing the Zacks Consensus Estimate. The top and the bottom line increased on a year-over-year basis.
The company reported robust demand for its Norwegian Cruise Line brand, with bookings and pricing exceeding 2023 levels. Also, it reported solid demand for Oceania Cruises and Regent Seven Seas Cruises across various geographical regions, except for itinerary adjustments due to cancellations in the Middle East and Red Sea regions.
JAKKS Pacific, Inc. (JAKK - Free Report) reported fourth-quarter 2023 results, with earnings and revenues missing the Zacks Consensus Estimate. Both the top and bottom lines missed the consensus estimate after beating in the preceding three quarters.
In the fourth quarter, two out of the company's top three U.S. Toys/Consumer Products managed to achieve positive year-over-year retail sales figures, despite facing challenging comparisons from the previous year. Additionally, the aggregate end-of-year inventory at retail for these three accounts has decreased by a high single-digit percentage compared with the previous year.
Strategic Education, Inc. (STRA - Free Report) , or SEI, reported impressive results for fourth-quarter 2023. Its quarterly earnings and revenues topped the Zacks Consensus Estimate and increased year over year.
Growth across its three segments, led by continued enrollment growth in the U.S. Higher Education (“USHE”), which was driven significantly by employer-affiliated enrollment, strong growth in the Education Technology Services (earlier known as Alternative Learning) and improving performance in Australia/New Zealand (“ANZ”), drove the result.
Image: Bigstock
Culp (CULP) to Report Q3 Earnings: Here's What to Expect
Culp, Inc. (CULP - Free Report) is scheduled to report third-quarter fiscal 2024 results on Mar 6, after market close.
In the last reported quarter, the company’s earnings and net sales topped the Zacks Consensus Estimate by 5% and 1.6%, respectively. The metrics increased 80.4% and 0.6% year over year, respectively.
CULP’s earnings topped the consensus mark in all of the trailing four quarters, the positive surprise being 15%, on average.
The Trend in Estimate Revision
For the quarter to be reported, the Zacks Consensus Estimate for earnings per share remained stable at a loss of 16 cents in the past 30 days. The estimated figure indicates an improvement of 76.5% from the year-ago quarter’s loss of 68 cents.
Culp, Inc. Price and EPS Surprise
Culp, Inc. price-eps-surprise | Culp, Inc. Quote
The consensus mark for net sales is pegged at $59 million, suggesting a 12.3% rise from the year-ago reported figure.
Key Factors to Note
Culp’s fiscal third-quarter net sales are expected to increase year over year, propelled by its strong market position, innovative product offerings and creative designs. Also, a resilient global manufacturing and sourcing platform, strong leadership teams and focused financial management are likely to have aided the company’s performance in the to-be-reported quarter.
The company anticipates consolidated net sales for the third quarter to be in line with the second quarter and moderately higher compared with the prior-year period’s levels.
Despite the current demand backdrop, Culp expects to continue on a path of sequential and year-over-year operating improvement, including a return to positive adjusted EBITDA in the third quarter. For the to-be-reported quarter, the company expects consolidated operating loss to be in the range of $1.2-$1.6 million. This marks a significant improvement compared with the $7.8 million operating loss in the prior-year period.
The bottom line is likely to have benefited from enhanced operating efficiencies, a positive product mix and reduced costs resulting from restructuring and rationalization in specific units.
However, persistent challenges in the domestic mattress and residential home furnishings industries are likely to have impacted the upholstery fabrics segment in the to-be-reported quarter. The ongoing impact of current macroeconomic conditions, influencing consumer spending and demand trends, is another concern.
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for Culp this time. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. This is not the case here, as elaborated below.
Earnings ESP: The company has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: CULP carries a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank stocks here.
Recent Consumer Discretionary Releases
Norwegian Cruise Line Holdings Ltd. (NCLH - Free Report) reported fourth-quarter 2023 results, with earnings and revenues missing the Zacks Consensus Estimate. The top and the bottom line increased on a year-over-year basis.
The company reported robust demand for its Norwegian Cruise Line brand, with bookings and pricing exceeding 2023 levels. Also, it reported solid demand for Oceania Cruises and Regent Seven Seas Cruises across various geographical regions, except for itinerary adjustments due to cancellations in the Middle East and Red Sea regions.
JAKKS Pacific, Inc. (JAKK - Free Report) reported fourth-quarter 2023 results, with earnings and revenues missing the Zacks Consensus Estimate. Both the top and bottom lines missed the consensus estimate after beating in the preceding three quarters.
In the fourth quarter, two out of the company's top three U.S. Toys/Consumer Products managed to achieve positive year-over-year retail sales figures, despite facing challenging comparisons from the previous year. Additionally, the aggregate end-of-year inventory at retail for these three accounts has decreased by a high single-digit percentage compared with the previous year.
Strategic Education, Inc. (STRA - Free Report) , or SEI, reported impressive results for fourth-quarter 2023. Its quarterly earnings and revenues topped the Zacks Consensus Estimate and increased year over year.
Growth across its three segments, led by continued enrollment growth in the U.S. Higher Education (“USHE”), which was driven significantly by employer-affiliated enrollment, strong growth in the Education Technology Services (earlier known as Alternative Learning) and improving performance in Australia/New Zealand (“ANZ”), drove the result.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.