Hibbett Sports, Inc. (HIBB), the operator of sporting goods stores, is slated to report its first-quarter fiscal 2015 results before the market opens on May 23, 2014. In the last quarter, it posted a negative surprise of 7.25%. Let’s see how things are shaping up for this announcement.
Factors Influencing This Quarter
We remain apprehensive about Hibbett’s growth prospects as its competitor and leading sporting goods store retailer, DICK’s Sporting Goods, has decided to enter smaller and mid-sized markets. The company’s strategy will not only increase competition for Hibbett but also raise store occupancy costs and operating expenses.
Earnings Whispers?
Our proven model does not conclusively show that Hibbett is likely to beat earnings estimates 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: ESP for Hibbett is 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at $1.10.
Zacks Rank: Hibbett’s Zacks Rank #4 (Sell) lowers the predictive power of ESP. We need to have a positive ESP to be confident about an earnings surprise. We caution against stocks with Zacks Ranks #4 and 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions momentum.
Stocks That Warrant a Look
Here are some other companies you may want to consider as our model shows they have the right combination of elements:
Skechers USA Inc. (SKX) has an Earnings ESP of +12.20% and a Zacks Rank #1 (Strong Buy).
The Kroger Co. (KR) has an Earnings ESP of +0.95% and a Zacks Rank #2 (Buy).
Lions Gate Entertainment Corp. (LGF) has an Earnings ESP of +7.69% and a Zacks Rank #3 (Hold).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
To read this article on Zacks.com click here.
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.
Be the first to comment