DICK’S Sporting Goods Inc. (DKS) is slated to release its second-quarter fiscal 2014 results on Aug 19, 2014. In the previous quarter, this sporting goods retailer reported a negative earnings surprise of 5.11%. Let’s see how things are shaping up for this announcement.
Factors Affecting This Quarter
DICK’s Sporting’s quarterly results have been suffering since the beginning of fiscal 2014 on weather woes. This has mainly impacted the company’s golf and hunting businesses which failed to meet expectations. Grappling with these troubles the company sees a bleak year ahead and thus, has lowered its fiscal 2014 forecasts.
Earnings Whispers?
Our proven model does not conclusively show that DICK’S Sporting 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.
Zacks ESP: DICK’S Sporting currently has an Earnings ESP of 0.00%. This is because the Most Accurate estimate stands at 65 cents a share, which is in line with the Zacks Consensus Estimate.
Zacks Rank #4 (Sell): DICK’S Sporting’s Zacks Rank #4 when combined with a Zero ESP makes surprise prediction unlikely. 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.
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:
Abercrombie & Fitch Co. (ANF) has an Earnings ESP of +20.00% and a Zacks Rank #2 (Buy).
Dollar Tree, Inc. (DLTR) has an Earnings ESP of +7.69% and a Zacks Rank #3 (Hold).
The Home Depot, Inc. (HD) has an Earnings ESP of +1.39% and a Zacks Rank #3.
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