PVH Corp. PVH is slated to report first-quarter fiscal 2015 results on Jun 1, after the closing bell. In the last quarter, the company had delivered a positive earnings surprise of 2.3%. Let’s see how things are shaping up for this announcement.
Factors Influencing This Quarter
Though PVH Corp. delivered better-than-expected results in the previous quarter, management remains cautious about its upcoming results, owing to the prevalent foreign currency headwinds as well as a volatile global macroeconomic environment, particularly in Russia.
Consequently, the company expects a 6% decline in total revenue for the first quarter, while currency neutral revenue is expected to increase 2%. Further, the company anticipates revenue to fall at all three segments, including a 3% decline at Calvin Klein, a 10% fall at Tommy Hilfiger and a 1% decline at the Heritage Brands.
Earnings Whispers
Our proven model does not conclusively show that PVH Corp. is likely to beat earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1, 2 or 3 for this to happen. This is not the case here, as you will see below:
Zacks ESP: Earnings ESP for PVH Corp. is currently at -0.73%. This is because the Most Accurate estimate of $1.37 stands below the Zacks Consensus Estimate of $1.38.
Zacks Rank: PVH Corp. carries a Zacks Rank #4 (Sell). 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.
Stocks that Warrant a Look
Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this quarter:
Casey's General Stores Inc. CASY has an Earnings ESP of +14.29% and a Zacks Rank #1 (Strong Buy).
G-III Apparel Group Ltd. GIII has an Earnings ESP of +33.33% and a Zacks Rank #3 (Hold).
Burlington Stores Inc. BURL has an Earnings ESP of +5.00% and a Zacks Rank #3.
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