V. F. Corp. Likely to Beat Earnings? - Analyst Blog
April 23 2013 - 6:20AM
Zacks
World’s leading apparel retailer, V. F.
Corporation (VFC) is likely to beat expectations when it
reports its first-quarter fiscal 2013 results on Apr 26.
Why a Likely Positive Surprise?
Our proven model shows that V. F. Corp. may beat the earnings
because it has the right combination of two key components –
Positive Earnings ESP (Read: Zacks Earnings ESP: A Better Method)
and a Zacks Rank #3.
Zacks ESP: V. F. Corp. currently has an Earnings
ESP of +0.92%. This is because the Most Accurate Estimate stands at
$2.19, while the Zacks Consensus Estimate is pegged at $2.17.
Zacks Rank #3 (Hold): Note that stocks with Zacks
Rank #1, #2 and #3 have significantly higher chances of beating the
earnings. The sell rated stocks (#4 and #5) should never be
considered going into an earnings announcement.
The combination of V. F. Corp’s Zacks Rank #3 (Hold) and an
Earnings ESP of +0.92% makes us confident regarding a positive
earnings beat by the company on Apr 26.
What is Driving the Better-than-Expected
Earnings?
We believe that the company’s aggressive approach toward the
expansion of its international business, particularly in the Asia
Pacific, bodes well for future growth. Moreover, V.F Corp.’s policy
to acquire businesses that provide strategic opportunities and exit
businesses having lower potential has helped it drive growth and
improve profitability.
The company has surpassed the Zacks Consensus Estimate in the
trailing four quarters with an average surprise of approximately
5.87%.
Other Stocks to Consider
V. F. Corp. is not the only firm looking up this earnings season.
The following companies – V. F. Corp’s industry peers – are also
likely to beat the earnings in the to-be-reported quarter:
Cabela’s Inc. (CAB) has an Earnings ESP of +1.70%
and carries a Zacks Rank #1 (Strong Buy).
Under Armour Inc. (UA) with an Earnings ESP of
+33.33% and a Zacks Rank #2 (Buy).
Michael Kors Holdings Limited (KORS) with an
Earnings ESP of +2.70% and a Zacks Rank #3 (Hold).
CABELAS INC (CAB): Free Stock Analysis Report
MICHAEL KORS (KORS): Free Stock Analysis Report
UNDER ARMOUR-A (UA): Free Stock Analysis Report
V F CORP (VFC): Free Stock Analysis Report
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