Will V. F. Corp (VFC) Miss Earnings This Season? - Analyst Blog
February 12 2014 - 11:50AM
Zacks
V. F. Corp. (VFC)
is scheduled to report its fourth-quarter and fiscal 2013 results
on Feb 14. Last quarter, this footwear and apparel retailer posted
a positive earnings surprise of approximately 4.3%. Let's see how
things are shaping up for this announcement.
Growth Factors in the Past Quarter
V. F. Corp. came up with strong third-quarter fiscal 2013 earnings
mainly driven by improved top line and margins. Top-line
improvement stemmed from robust growth in Outdoor & Action
Sports, Jeanswear and International as well as Direct-to-Consumer
revenues, while gross margin benefited from improvement in higher
margin businesses and lower product costs. Further, the
company provided an encouraging guidance for fiscal 2013. Moreover,
the company’s recently completed 4:1 stock split instilled further
confidence into the stock.
Earnings Whispers?
Our proven model does not conclusively project V. F. Corp. as
likely to beat earnings this quarter. A stock needs to have both a
positive Earnings ESP and a Zacks Rank #1, 2 or 3 to surpass
earnings estimates. However, this is not the case here due to the
following factors:
Zacks ESP: ESP (Expected Surprise Prediction) for
V. F. Corp. is 0.00% since the Most Accurate estimate stands at 84
cents per share, which is in line with the Zacks Consensus
Estimate.
Zacks #3 Rank (Hold): V. F. Corp’s Zacks Rank #3
increases the predictive power of ESP. However, we also need to
have a positive ESP to be confident of an earnings surprise call.
We caution against stocks with a Zacks Rank #4 and #5 (Sell-rated
stocks) going into earnings announcement, especially when the
company is undergoing negative estimate revisions.
Other Stocks to Consider
V. F. Corp. is not the only firm we are looking up to this earnings
season. Our model shows that the following stocks have the right
combination to post an earnings beat:
Foot Locker Inc. (FL) has an Earnings ESP of
+1.33% and a Zacks Rank #2 (Buy).
Finish Line Inc. (FINL) has an Earnings ESP of
+1.18% and a Zacks Rank #2 (Buy).
The Home Depot Inc. (HD) with an Earnings ESP of
+1.39% holds a Zacks Rank #3 (Hold).
FINISH LINE-CLA (FINL): Free Stock Analysis Report
FOOT LOCKER INC (FL): Free Stock Analysis Report
HOME DEPOT (HD): Free Stock Analysis Report
V F CORP (VFC): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
VF (NYSE:VFC)
Historical Stock Chart
From Jun 2024 to Jul 2024
VF (NYSE:VFC)
Historical Stock Chart
From Jul 2023 to Jul 2024