We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Finish Line (FINL) to Post Q4 Earnings: What's in the Cards?
Read MoreHide Full Article
The Finish Line, Inc. is scheduled to release fourth-quarter fiscal 2017 results on Mar 24. The big question facing investors is, whether this leading mall-based specialty retailer will be able to deliver a positive earnings surprise in the quarter to be reported.
Though Finish Line has outperformed the Zacks Consensus Estimate by an average of 5.3% in the trailing four quarters, last quarter it posted a negative earnings surprise of 33.3%. A look at Finish Line’s earnings estimates revisions shows that the Zacks Consensus Estimate for both the fourth quarter and fiscal 2017 has been stable over the last 30 days. However, the current Zacks Consensus Estimate of 71 cents per share for the fiscal fourth quarter reflects a year-over-year decline of 14.6%. Also, analysts polled by Zacks expect revenues of $554.2 million, down 4.5% from the year-ago quarter.
Finish Line has underperformed the Zacks categorized Retail – Apparel/Shoe industry in the past six months. Shares of the company have slumped 27.5% over the past six months compared with the industry’s decline of 12.5%. Finish Line delivered lower-than-expected results in the last quarter, which was largely hampered by weakness in the soft goods category.
Following the fiscal third quarter, management stated that it expects the soft goods category to remain unfavorable in the near term. Also, a delay in tax refunds is expected to shift February sales into March, thus weighing on the fiscal fourth-quarter top line. Considering these factors, management forecasted fiscal fourth-quarter comps to decline in a range of 3–5%, while earnings were projected in a range of 68–73 cents per share. Moreover, an intensely promotional retail environment is expected to dent product margins, which is anticipated to decline 150–200 basis points.
Nonetheless, thanks to the absence of additional costs related to the the supply chain disruption experienced in the year-ago period, the company expects SG&A expenses to improve as a percentage of sales. Also, the company remains focused on solidifying its foundation, expanding its footwear division and strengthening its ties with Macy’s. The company also remains on track with its stores and e-commerce expansion, which is likely to attract more traffic and drive sales.
However, given the aforementioned challenges and a conservative outlook, we prefer to wait and see what is in store for Finish Line in the upcoming earnings release.
Earnings Whispers
Our proven model does not conclusively show that Finish Line 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 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. This is not the case here, as you will see below:
Zacks ESP: Finish Line currently has an Earnings ESP of 0.00%. This is because both, the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 71 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Finish Line’s Zacks Rank #3 (Hold) increases the predictive power of ESP. However, the company’s ESP of 0.00% makes surprise prediction difficult.
We caution against Sell-rated stocks (#4 or 5) 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:
Constellation Brands, Inc. (STZ - Free Report) , slated to report earnings on Apr 6, currently has an Earnings ESP of +0.73% and a Zacks Rank #3.
Fastenal Company (FAST - Free Report) , expected to release earnings on Apr 11, currently has an Earnings ESP of +2.17% and a Zacks Rank #3.
5 Trades Could Profit ""Big-League"" from Trump Policies
If the stocks above spark your interest, wait until you look into companies primed to make substantial gains from Washington's changing course.
Today Zacks reveals 5 tickers that could benefit from new trends like streamlined drug approvals, tariffs, lower taxes, higher interest rates, and spending surges in defense and infrastructure. See these buy recommendations now >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Finish Line (FINL) to Post Q4 Earnings: What's in the Cards?
The Finish Line, Inc. is scheduled to release fourth-quarter fiscal 2017 results on Mar 24. The big question facing investors is, whether this leading mall-based specialty retailer will be able to deliver a positive earnings surprise in the quarter to be reported.
Though Finish Line has outperformed the Zacks Consensus Estimate by an average of 5.3% in the trailing four quarters, last quarter it posted a negative earnings surprise of 33.3%. A look at Finish Line’s earnings estimates revisions shows that the Zacks Consensus Estimate for both the fourth quarter and fiscal 2017 has been stable over the last 30 days. However, the current Zacks Consensus Estimate of 71 cents per share for the fiscal fourth quarter reflects a year-over-year decline of 14.6%. Also, analysts polled by Zacks expect revenues of $554.2 million, down 4.5% from the year-ago quarter.
The Finish Line, Inc. Price and EPS Surprise
The Finish Line, Inc. Price and EPS Surprise | The Finish Line, Inc. Quote
Factors Influencing this Quarter
Finish Line has underperformed the Zacks categorized Retail – Apparel/Shoe industry in the past six months. Shares of the company have slumped 27.5% over the past six months compared with the industry’s decline of 12.5%. Finish Line delivered lower-than-expected results in the last quarter, which was largely hampered by weakness in the soft goods category.
Following the fiscal third quarter, management stated that it expects the soft goods category to remain unfavorable in the near term. Also, a delay in tax refunds is expected to shift February sales into March, thus weighing on the fiscal fourth-quarter top line. Considering these factors, management forecasted fiscal fourth-quarter comps to decline in a range of 3–5%, while earnings were projected in a range of 68–73 cents per share. Moreover, an intensely promotional retail environment is expected to dent product margins, which is anticipated to decline 150–200 basis points.
Nonetheless, thanks to the absence of additional costs related to the the supply chain disruption experienced in the year-ago period, the company expects SG&A expenses to improve as a percentage of sales. Also, the company remains focused on solidifying its foundation, expanding its footwear division and strengthening its ties with Macy’s. The company also remains on track with its stores and e-commerce expansion, which is likely to attract more traffic and drive sales.
However, given the aforementioned challenges and a conservative outlook, we prefer to wait and see what is in store for Finish Line in the upcoming earnings release.
Earnings Whispers
Our proven model does not conclusively show that Finish Line 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 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. This is not the case here, as you will see below:
Zacks ESP: Finish Line currently has an Earnings ESP of 0.00%. This is because both, the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 71 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Finish Line’s Zacks Rank #3 (Hold) increases the predictive power of ESP. However, the company’s ESP of 0.00% makes surprise prediction difficult.
We caution against Sell-rated stocks (#4 or 5) 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:
Conagra Brands, Inc. (CAG - Free Report) , slated to release earnings on Apr 6, currently has an Earnings ESP of +4.44% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Constellation Brands, Inc. (STZ - Free Report) , slated to report earnings on Apr 6, currently has an Earnings ESP of +0.73% and a Zacks Rank #3.
Fastenal Company (FAST - Free Report) , expected to release earnings on Apr 11, currently has an Earnings ESP of +2.17% and a Zacks Rank #3.
5 Trades Could Profit ""Big-League"" from Trump Policies
If the stocks above spark your interest, wait until you look into companies primed to make substantial gains from Washington's changing course.
Today Zacks reveals 5 tickers that could benefit from new trends like streamlined drug approvals, tariffs, lower taxes, higher interest rates, and spending surges in defense and infrastructure. See these buy recommendations now >>