Deckers Outdoor Corporation (DECK), designer, producer and brand manager of innovative, niche footwear and accessories, is slated to report its second-quarter fiscal 2015 results on Oct 23. In the last quarter, it had posted a positive surprise of 18.3%. Let’s see how things are shaping up for this announcement.
Factors Influencing this Quarter
The quarter will be marked by intense competition in the footwear industry and soft economic recovery. Moreover, currency pressure and cautious consumer spending may weigh upon the company’s performance.
Earnings Whispers?
Our proven model does not conclusively show that Deckers 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: Earnings ESP for Deckers is 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at $1.01.
Zacks Rank: Deckers carries a Zacks Rank #3 (Hold). Though a favorable Zacks Rank increases the predictive power of ESP, the company’s ESP of 0.00% makes surprise prediction difficult.
The Sell-rated stocks (Rank #4 and 5) should never be considered going into an earnings announcement.
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:
L Brands, Inc. (LB) has an Earnings ESP of +3.13% and a Zacks Rank #2 (Buy).
Under Armour, Inc. (UA) has an Earnings ESP of +2.50% and a Zacks Rank #2.
The Home Depot, Inc. (HD) has an Earnings ESP of +0.89% and a Zacks Rank #2.
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