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What's in the Cards for Zumiez (ZUMZ) in Q2 Earnings?
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Zumiez Inc. (ZUMZ - Free Report) is slated to release second-quarter fiscal 2016 results on Sep 8. Last quarter, the company had delivered a positive earnings surprise of 33.3%. Notably, it has outperformed the Zacks Consensus Estimate by an average of 16.4% over the trailing four quarters. Let’s see how things are shaping up for this announcement.
Though Zumiez’s earnings history presents a positive picture, the company has been posting negative comparable-store sales (comps) for 16 straight months now. The primary reason behind the decrease in comps for July was the overall softness in consumer demand and the impact of a tough retail environment. Additionally, comps were affected by slow mall traffic and the absence of defined fashion trends, which have been weighing on Zumiez’s top line for a while now.
Though the company witnessed a sluggish comps performance in all three months of the second quarter, the comps decline of 4.9% for the quarter fared better than management's projection of a 6% to 8% decline. Thus, the company now expects bottom-line results to be at the upper end or marginally better than its previous projection of a loss of 9 to 13 cents per share on account of better-than-expected sales. So let’s wait and see where this mall-based specialty retailer actually stands after the upcoming release.
Earnings Whispers
Our proven model does not conclusively show that Zumiez is likely to beat estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1, 2 or 3 for this to happen. This is not the case here, as you will see below:
Zacks ESP: Earnings ESP for Zumiez is currently pegged at 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at a loss of 8 cents per share.
Zacks Rank: Zumiez carries a Zacks Rank #3 (Hold). We caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks Poised to Beat Earnings Estimates
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:
Casey's General Stores Inc. (CASY - Free Report) , expected to report earnings on Sep 6, has an Earnings ESP of +3.35% and a Zacks Rank #3.
Dave & Buster's Entertainment Inc. (PLAY - Free Report) , anticipated to report earnings on Sep 6, has an Earnings ESP of +2.27% and a Zacks Rank #3.
Francesca's Holdings Corporation , expected to report earnings on Sep 7, has an Earnings ESP of +11.11% and a Zacks Rank #2 (Buy).
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What's in the Cards for Zumiez (ZUMZ) in Q2 Earnings?
Zumiez Inc. (ZUMZ - Free Report) is slated to release second-quarter fiscal 2016 results on Sep 8. Last quarter, the company had delivered a positive earnings surprise of 33.3%. Notably, it has outperformed the Zacks Consensus Estimate by an average of 16.4% over the trailing four quarters. Let’s see how things are shaping up for this announcement.
ZUMIEZ INC Price and EPS Surprise
ZUMIEZ INC Price and EPS Surprise | ZUMIEZ INC Quote
Factors Influencing this Quarter
Though Zumiez’s earnings history presents a positive picture, the company has been posting negative comparable-store sales (comps) for 16 straight months now. The primary reason behind the decrease in comps for July was the overall softness in consumer demand and the impact of a tough retail environment. Additionally, comps were affected by slow mall traffic and the absence of defined fashion trends, which have been weighing on Zumiez’s top line for a while now.
Though the company witnessed a sluggish comps performance in all three months of the second quarter, the comps decline of 4.9% for the quarter fared better than management's projection of a 6% to 8% decline. Thus, the company now expects bottom-line results to be at the upper end or marginally better than its previous projection of a loss of 9 to 13 cents per share on account of better-than-expected sales. So let’s wait and see where this mall-based specialty retailer actually stands after the upcoming release.
Earnings Whispers
Our proven model does not conclusively show that Zumiez is likely to beat estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1, 2 or 3 for this to happen. This is not the case here, as you will see below:
Zacks ESP: Earnings ESP for Zumiez is currently pegged at 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at a loss of 8 cents per share.
Zacks Rank: Zumiez carries a Zacks Rank #3 (Hold). We caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks Poised to Beat Earnings Estimates
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:
Casey's General Stores Inc. (CASY - Free Report) , expected to report earnings on Sep 6, has an Earnings ESP of +3.35% and a Zacks Rank #3.
Dave & Buster's Entertainment Inc. (PLAY - Free Report) , anticipated to report earnings on Sep 6, has an Earnings ESP of +2.27% and a Zacks Rank #3.
Francesca's Holdings Corporation , expected to report earnings on Sep 7, has an Earnings ESP of +11.11% and a Zacks Rank #2 (Buy).
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>