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CULP Gears Up to Report Q4 Earnings: What's in the Offing?

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Culp, Inc. (CULP - Free Report) is scheduled to report fourth-quarter fiscal 2024 results on Jun 27, after market close.

In the last reported quarter, the company’s loss widened the Zacks Consensus Estimate by 62.5% but narrowed 64.4% year over year. Net sales beat the consensus mark by 2.5% and increased 15% year over year.

CULP’s earnings topped the consensus mark in three of the trailing four quarters and missed once, with an average being negative 2.6%.

The Trend in Estimate Revision

For the quarter to be reported, the Zacks Consensus Estimate for loss per share widened to 44 cents from 40 cents in the past 60 days. The estimated figure indicates a deterioration of 15.8% from the year-ago quarter’s level of 38 cents.

The consensus mark for net sales is pegged at $49.76 million, suggesting a 19% decline from the year-ago reported figure.

Key Factors to Note

Culp is likely to have generated lower net sales in the fiscal fourth quarter due to demand softness across the business. The company expects total net sales to be down from the prior-year period. This is due partly to the timing of the Chinese New Year holiday and weakness in demand impacting both segments, majorly in the residential upholstery fabrics business.

Also, the internal inefficiencies relating to the startup and production of certain new products in mattress fabrics during the fiscal third quarter are likely to have affected the top line in the fiscal fourth quarter.

Culp expects an operating loss to be comparable from the prior-year period.

What Our Quantitative Model Predicts

Our proven model does not conclusively predict an earnings beat for CULP 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, as you will see 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 currently carries a Zacks Rank #3.

Stocks to Consider

Some better-ranked stocks from the Zacks Consumer Discretionary industry.

La-Z-Boy Incorporated (LZB - Free Report) presently flaunts a Zacks Rank #1. It has a trailing four-quarter earnings surprise of 15.3%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.

The consensus estimate for LZB’s fiscal 2025 EPS indicates an improvement of 5% from the prior-year levels. The estimated figure moved up to $3.13 from $2.80 over the past seven days.

SharkNinja Inc. (SN - Free Report) presently flaunts a Zacks Rank #1. It has a trailing three-quarter earnings surprise of 12.2%, on average.

The consensus estimate for SN’s 2024 EPS indicates an improvement of 18.6% from the prior-year levels. The estimated figure moved up to $3.82 from $3.54 over the past 60 days.

Interface, Inc. (TILE - Free Report) presently carries a Zacks Rank #2. It has a trailing four-quarter earnings surprise of 64%, on average.

The consensus estimate for TILE’s 2024 EPS indicates an improvement of 18% from the prior-year levels. The estimated figure moved up to $1.18 from $1.05 over the past 60 days.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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