Cabela's Incorporated CAB is slated to report its first-quarter 2015 results on Apr 23. In the last quarter, it posted a negative surprise of 17.8%. Let’s see how things are shaping up prior to this announcement.
Factors Affecting This Quarter
Increased advertising expenditure is likely to prove a headwind for the quarter under review. However, robust performance at Cabela’s CLUB and the company’s next-generation stores are likely to provide respite.
Earnings Whispers
Our proven model does not conclusively project Cabela's as likely to beat earnings this quarter. That 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. This is not the case here, as you will see below.
Zacks ESP: ESP for Cabela's is 0.00%. This is because the Most Accurate estimate and the Zacks Consensus Estimate stand at 37 cents.
Zacks Rank: Cabela's carries a Zacks Rank #2. Though Zacks Rank #1, 2 or 3 increases the predictive power of ESP, the company’s ESP of 0.00% makes surprise prediction difficult.
We caution against stocks with a Zacks Rank #4 and 5 (Sell-rated stocks) going into an earnings announcement, especially when the company is witnessing negative estimate revisions.
Other Stocks to Consider
Here are some other companies you may want to consider as our model shows these to have the right combination of elements to post an earnings beat:
Tyson Foods, Inc. TSN has an Earnings ESP of +1.35% and a Zacks Rank #2.
BJ's Restaurants, Inc. BJRI has an Earnings ESP of +7.14% and a Zacks Rank #2.
The New York Times Company NYT has an Earnings ESP of +12.50% and a Zacks Rank #3.
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