Is Genesco (GCO) Likely to Miss Earnings? - Analyst Blog
March 11 2014 - 11:00AM
Zacks
Genesco Inc.
(GCO), a retailer and wholesaler of branded footwear, apparel, and
accessories, is slated to post fourth-quarter fiscal 2013 results
on Mar 13, 2014. In the previous quarter, the company delivered a
positive earnings surprise of 4.4%. Let’s see how things are
shaping up for this announcement.
Factors this Past Quarter
In the previous quarter, Genesco’s earnings beat estimates. Sales
improved marginally year over year and were above the Zacks
Consensus Estimate. Top-line results during the quarter were
impacted by a 1% decline in comparable-store sales (comps).
Earnings Whispers?
Our proven model does not conclusively show that Genesco is likely
to beat earnings this quarter. This is because a stock needs to
have both a positive Earnings ESP (Expected Surprise Prediction)
and a Zacks Rank of #1, 2 or 3 for this to happen. This is not the
case here as you will see below.
Negative Zacks ESP: Genesco currently has an
Earnings ESP of -0.46%. This is because the Most Accurate estimate
stands at $2.17, while the Zacks Consensus Estimate is pegged at
$2.18 per share.
Zacks Rank: Genesco’s Zacks Rank #4 (Sell) when
combined with negative ESP of 0.46% makes surprise prediction
difficult. We caution against stocks with a Zacks Rank #4 and 5
(Sell rated stocks) going into the earnings announcement,
especially when the company is seeing negative estimate revisions
momentum.
Other Stocks to Consider
Here are some other companies you may want to consider as our model
shows they have the right combination of elements to post an
earnings beat this quarter:
TD Ameritrade Holding Corporation (AMTD), Earnings
ESP of +6.25% and a Zacks Rank #1 (Strong Buy).
CommScope Holding Company, Inc. (COMM), Earnings
ESP of +5.71% and a Zacks Rank #1 (Strong Buy).
First Merchants Corporation (FRME), Earnings ESP
of +2.56% and a Zacks Rank #1 (Strong Buy).
TD AMERITRADE (AMTD): Free Stock Analysis Report
COMMSCOPE HLDG (COMM): Free Stock Analysis Report
FIRST MERCHANTS (FRME): Free Stock Analysis Report
GENESCO INC (GCO): Free Stock Analysis Report
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