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.
Foot Locker (FL) Stock Jumps 2% Ahead of Q2 Earnings: What to Watch
Read MoreHide Full Article
Shares of Foot Locker (FL - Free Report) popped just over 2% during regular trading hours Thursday in a sign that investors might expect good things from the sports retailer’s quarterly financial results. But the question is will FL continue a run of impressive retail earnings? Let’s take a look at Foot Locker’s latest quarterly projections ahead of its Q2 earnings release Friday morning to find out.
Walmart (WMT - Free Report) , Home Depot (HD - Free Report) , Nordstrom (JWN - Free Report) , and tons of other retailers posted strong quarterly financial results over the last few weeks. But with second-quarter earnings season winding down, there are few retailers left to report, which means more eyes will likely be on Foot Locker—especially since the sports apparel and footwear world has gone through big changes recently.
Foot Locker, like Dick’s Sporting Good (DKS - Free Report) and others, have been hurt by the shifting retail climate, with Nike (NKE - Free Report) , Adidas (ADDYY - Free Report) , and Under Armour (UAA - Free Report) all trying to transition to their own e-commerce platforms, and away from wholesale. But shares of FL have skyrocketed 68% since Foot Locker stock plummeted to a roughly five-year low in the fall of 2017.
Foot Locker Q2
Our current Zacks Consensus Estimate is calling for Foot Locker’s Q2 revenues to climb by roughly 3.7% to touch $1.76 billion. At the other end of the income statement, Foot Locker’s adjusted second-quarter earnings are expected to pop by nearly 13% to hit $0.70 per share. But, we still need to know how likely it is that Foot Locker tops our quarterly earnings estimate.
Luckily, we can turn to our exclusive Earnings ESP figure to help us find out. Zacks Earnings ESP (Expected Surprise Prediction) compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter. The Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change.
This is done because, generally speaking, when an analyst posts an estimate right before an earnings release, it means that they have fresh information which could potentially be more accurate than what analysts thought about a company two or three months ago.
A positive Earnings ESP paired with a Zacks Rank #3 (Hold) or better ranking helps us feel confident about the potential for an earnings beat. In fact, our 10-year backtest has revealed that this methodology has accurately produced a positive surprise 70% of the time.
Foot Locker currently sports an earnings ESP of 0.26% and a Zacks Rank #3 (Hold). Therefore, our model suggests that the New York-based company could top our quarterly earnings estimate when it reports its Q2 results before the opening bell Friday. Plus, Foot Locker has topped our earnings estimates in the trailing three quarters.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
Image: Bigstock
Foot Locker (FL) Stock Jumps 2% Ahead of Q2 Earnings: What to Watch
Shares of Foot Locker (FL - Free Report) popped just over 2% during regular trading hours Thursday in a sign that investors might expect good things from the sports retailer’s quarterly financial results. But the question is will FL continue a run of impressive retail earnings? Let’s take a look at Foot Locker’s latest quarterly projections ahead of its Q2 earnings release Friday morning to find out.
Walmart (WMT - Free Report) , Home Depot (HD - Free Report) , Nordstrom (JWN - Free Report) , and tons of other retailers posted strong quarterly financial results over the last few weeks. But with second-quarter earnings season winding down, there are few retailers left to report, which means more eyes will likely be on Foot Locker—especially since the sports apparel and footwear world has gone through big changes recently.
Foot Locker, like Dick’s Sporting Good (DKS - Free Report) and others, have been hurt by the shifting retail climate, with Nike (NKE - Free Report) , Adidas (ADDYY - Free Report) , and Under Armour (UAA - Free Report) all trying to transition to their own e-commerce platforms, and away from wholesale. But shares of FL have skyrocketed 68% since Foot Locker stock plummeted to a roughly five-year low in the fall of 2017.
Foot Locker Q2
Our current Zacks Consensus Estimate is calling for Foot Locker’s Q2 revenues to climb by roughly 3.7% to touch $1.76 billion. At the other end of the income statement, Foot Locker’s adjusted second-quarter earnings are expected to pop by nearly 13% to hit $0.70 per share. But, we still need to know how likely it is that Foot Locker tops our quarterly earnings estimate.
Luckily, we can turn to our exclusive Earnings ESP figure to help us find out. Zacks Earnings ESP (Expected Surprise Prediction) compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter. The Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change.
This is done because, generally speaking, when an analyst posts an estimate right before an earnings release, it means that they have fresh information which could potentially be more accurate than what analysts thought about a company two or three months ago.
A positive Earnings ESP paired with a Zacks Rank #3 (Hold) or better ranking helps us feel confident about the potential for an earnings beat. In fact, our 10-year backtest has revealed that this methodology has accurately produced a positive surprise 70% of the time.
Foot Locker currently sports an earnings ESP of 0.26% and a Zacks Rank #3 (Hold). Therefore, our model suggests that the New York-based company could top our quarterly earnings estimate when it reports its Q2 results before the opening bell Friday. Plus, Foot Locker has topped our earnings estimates in the trailing three quarters.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>