Back to top

Image: Bigstock

How Shoe Carnival (SCVL) Looks Just Ahead of Q2 Earnings

Read MoreHide Full Article

Shoe Carnival, Inc. (SCVL - Free Report) is scheduled to report second-quarter fiscal 2019 results on Aug 28. Notably, this Evansville-based company’s earnings missed the Zacks Consensus Estimate in three of the trailing four quarters, the average positive surprise being 25.2%.

Let’s see what awaits the upcoming quarterly release.

Which Way Are Estimates Heading?

The Zacks Consensus Estimate for fiscal second-quarter earnings is currently pegged at 80 cents, suggesting growth of 5.3% from 76 cents reported in the year-ago period. The Zacks Consensus Estimate has remained stable over the past 30 days. The consensus mark for revenues is pegged at $272.4 million, indicating growth of 1.5% from the year-ago quarter’s reported figure.

Shoe Carnival, Inc. Price and EPS Surprise

Factors to Consider

Shoe Carnival is progressing well with its CRM strategy. In this regard, the company anticipates initial implementation to be completed by the end of this fiscal. Management is optimistic about this initiative, which is expected to act as a major sales driver. In fact, the company projects comparable store sales to rise low-single digit in the to-be-reported quarter.

Apart from this, the company is focused on supply-chain initiatives. This along with investments in software and analytical tools bodes well for fiscal second-quarter results.

Further, the company has been witnessing declining SG&A costs for the last few quarters. Lower expenses can be attributed to closed stores. Notably, SG&A expenses dropped during the first quarter, mainly due to cost reduction to the tune of $1 million from stores that have closed since the beginning of fiscal 2018. This is likely to have contributed to operating margin in the fiscal second quarter as well and, in turn, the bottom line.

What the Zacks Model Unveils

Our proven model does not conclusively show that Shoe Carnival is likely to beat earnings estimates in the quarter to be reported. 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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Shoe Carnival has a Zacks Rank #3 and an Earnings ESP of 0.00%, which makes surprise prediction difficult.

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) has an Earnings ESP of +8.43% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Burlington Stores, Inc. (BURL - Free Report) has an Earnings ESP of +1.13% and a Zacks Rank #2.

Costco Wholesale Corporation (COST - Free Report) has an Earnings ESP of +0.30% and a Zacks Rank #3.

Today's Best Stocks from Zacks

Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.

This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.

See their latest picks free >>


Zacks' 7 Best Strong Buy Stocks (New Research Report)


Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.


Click Here, It's Really Free

Published in