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.
Factors Likely to Influence Dillard's (DDS) Earnings in Q4
Read MoreHide Full Article
Dillard's, Inc. (DDS - Free Report) is likely to witness a marginal decline in the bottom line when this departmental store chain reports fourth-quarter fiscal 2018 numbers. In the preceding quarter, this Arkansas-based company had posted dismal earnings, which also fell short of the Zacks Consensus Estimate. However, the company delivered average four-quarter positive earnings surprise of 21.2%.
Coming back to the quarter under review, we note that the Zacks Consensus Estimate for earnings is pegged at $2.80, reflecting a dip of 0.7% from $2.82 earned in the year-ago period. Notably, estimates moved north over the past seven days. For revenues, the consensus mark stands at $2,003 million, reflecting nearly 5% decline from the year-ago quarter number.
Factors That Hold the Key to Dillard's Performance
In the retail apparel space, Dillard's remains prone to the challenging trends due to changing customer preferences. In the last reported quarter, increased markdowns significantly dented margins and weighed on the company’s bottom-line performance. Consolidated gross margin reflected greater decline than gross margin for retail operations as volume for the lower-margin CDI business improved. Stiff competition in the industry remains an added concern. These headwinds are likely to persist in the to-be-reported quarter.
For fiscal 2018, the company had earlier projected rentals of approximately $29 million. While net interest and debt expenses are anticipated to be $54 million, depreciation and amortization expenses are projected to be $225 million. Further, it expects capital expenditures of about $140 million for the fiscal year.
Nevertheless, Dillard’s is expected to benefit from growth opportunities in both its brick-and-mortar stores and e-commerce business. On the store front, the company will gain by enhancing brand relations, focusing on in-trend categories and store remodels, and rewarding store personnel. Meanwhile, some of the strategies to boost its e-commerce business include enhancement of merchandise assortments and effective inventory management.
Further, the company has been witnessing higher comparable store sales backed by exclusive merchandise offerings and robust store-growth efforts. Solid performance across most of its product categories also drives optimism.
What Does the Zacks Model Unveil?
Our proven model does not conclusively show that Dillard's is likely to beat estimates in fourth-quarter fiscal 2018. This is because a stock needs to have both — a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) and a positive Earnings ESP — for this to happen. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Although Dillard's has a Zacks Rank #3 that increases the predictive power of earnings beat, an Earnings ESP of -2.68% makes surprise prediction difficult.
3 Stocks With Favorable Combination
Here are three companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
American Eagle Outfitters, Inc. (AEO - Free Report) has an Earnings ESP of +0.60% and a Zacks Rank #2.
The Home Depot, Inc. (HD - Free Report) has an Earnings ESP of +1.22% and a Zacks Rank #3.
Is Your Investment Advisor Fumbling Your Financial Future?
See how you can more effectively safeguard your retirement with a new Special Report, “4 Warning Signs Your Investment Advisor Might Be Sabotaging Your Financial Future.”
Image: Bigstock
Factors Likely to Influence Dillard's (DDS) Earnings in Q4
Dillard's, Inc. (DDS - Free Report) is likely to witness a marginal decline in the bottom line when this departmental store chain reports fourth-quarter fiscal 2018 numbers. In the preceding quarter, this Arkansas-based company had posted dismal earnings, which also fell short of the Zacks Consensus Estimate. However, the company delivered average four-quarter positive earnings surprise of 21.2%.
Coming back to the quarter under review, we note that the Zacks Consensus Estimate for earnings is pegged at $2.80, reflecting a dip of 0.7% from $2.82 earned in the year-ago period. Notably, estimates moved north over the past seven days. For revenues, the consensus mark stands at $2,003 million, reflecting nearly 5% decline from the year-ago quarter number.
Dillard's, Inc. Price, Consensus and EPS Surprise
Dillard's, Inc. Price, Consensus and EPS Surprise | Dillard's, Inc. Quote
Factors That Hold the Key to Dillard's Performance
In the retail apparel space, Dillard's remains prone to the challenging trends due to changing customer preferences. In the last reported quarter, increased markdowns significantly dented margins and weighed on the company’s bottom-line performance. Consolidated gross margin reflected greater decline than gross margin for retail operations as volume for the lower-margin CDI business improved. Stiff competition in the industry remains an added concern. These headwinds are likely to persist in the to-be-reported quarter.
For fiscal 2018, the company had earlier projected rentals of approximately $29 million. While net interest and debt expenses are anticipated to be $54 million, depreciation and amortization expenses are projected to be $225 million. Further, it expects capital expenditures of about $140 million for the fiscal year.
Nevertheless, Dillard’s is expected to benefit from growth opportunities in both its brick-and-mortar stores and e-commerce business. On the store front, the company will gain by enhancing brand relations, focusing on in-trend categories and store remodels, and rewarding store personnel. Meanwhile, some of the strategies to boost its e-commerce business include enhancement of merchandise assortments and effective inventory management.
Further, the company has been witnessing higher comparable store sales backed by exclusive merchandise offerings and robust store-growth efforts. Solid performance across most of its product categories also drives optimism.
What Does the Zacks Model Unveil?
Our proven model does not conclusively show that Dillard's is likely to beat estimates in fourth-quarter fiscal 2018. This is because a stock needs to have both — a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) and a positive Earnings ESP — for this to happen. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Although Dillard's has a Zacks Rank #3 that increases the predictive power of earnings beat, an Earnings ESP of -2.68% makes surprise prediction difficult.
3 Stocks With Favorable Combination
Here are three companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
Abercrombie & Fitch (ANF - Free Report) has an Earnings ESP of +0.94% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
American Eagle Outfitters, Inc. (AEO - Free Report) has an Earnings ESP of +0.60% and a Zacks Rank #2.
The Home Depot, Inc. (HD - Free Report) has an Earnings ESP of +1.22% and a Zacks Rank #3.
Is Your Investment Advisor Fumbling Your Financial Future?
See how you can more effectively safeguard your retirement with a new Special Report, “4 Warning Signs Your Investment Advisor Might Be Sabotaging Your Financial Future.”
Click to get it free >>