Leading footwear and athletic apparel retailer Nike Inc. (NKE Quick QuoteNKE - Free Report) is slated to report second-quarter fiscal 2017 results after the closing bell on Dec 20. In the last quarter, the company posted a positive surprise of 30.4%.

In fact, it has delivered an average positive earnings surprise of 12.9% in the trailing four quarters. Nike’s bottom line beat the Zacks Consensus Estimate in each of the last four quarters. Let’s see how things are shaping up for this announcement.

Factors Influencing this Quarter

Nike’s positive surprise history reveals that the company has been gaining from its customer-centric approach, innovative products and portfolio strength. Further, the company’s constant efforts to innovate, its key growth driver, along with continued focus on enhancing retail and online customer experience, augur well.

Looking back at the last quarter, Nike’s earnings beat expectations for the 17th straight quarter and its top line surpassed estimates after three consecutive misses. Results improved year over year, largely driven by robust summer events like the Rio Olympics and European soccer championship. Going forward, the company remains confident of its growth drivers like efficient supply chain, enhanced sync between the digital and physical experiences, constant innovations and strategic investments, all of which are likely to boost long-term shareholder value.

However, the company’s future orders witnessed a considerable slowdown and lagged expectations in first-quarter fiscal 2017 as stiff competition from rivals weighed on the demand for NIKE’s basketball shoes and casual footwear. Additionally, a shift in consumer tastes and preferences toward more fashionable assortments is playing foul for NIKE, whose ‘athleisure’ popularity seems to be losing ground. Further, it faces intense competition in both domestic and international markets from local as well as from established players.

With these mixed factors at play, we would like to wait and see what's in store for this athletic goods retailer in the quarter to be reported.

Earnings Whispers

Our proven model does not conclusively show that Nike is likely to beat earnings estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1, #2 or #3 to surpass earnings estimates. However, this is not the case here, as you will see below:

Zacks ESP: Earnings ESP for Nike is 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 43 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Nike currently carries a Zacks Rank #3 (Hold), which increases the predictive power of ESP. However, the company’s ESP of 0.00% makes surprise prediction difficult.

We caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.

Stocks to Consider

Here are some companies you may want to consider as our model shows they have the right combination to post an earnings beat:

CarMax Inc. (KMX Quick QuoteKMX - Free Report) , slated to report earnings on Dec 20, has an Earnings ESP of +2.82% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Constellation Brands Inc. (STZ Quick QuoteSTZ - Free Report) , scheduled to report earnings on Jan 5, has an Earnings ESP of +2.96% and a Zacks Rank #3.

Caterpillar Inc. (CAT Quick QuoteCAT - Free Report) , expected to report earnings on Jan 26, has an Earnings ESP of +3.03% and a Zacks Rank #3.

The Best Place to Start Your Stock Search

Today, you are invited to download the full list of 220 Zacks Rank #1 ""Strong Buy"" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 ""Strong Sells"" and other private research. See these stocks free >>