Big 5 Sporting Goods Corp. BGFV is slated to report fourth-quarter 20Array5 results on Mar Array. In the last quarter, the company had delivered a negative earnings surprise of 6.7%. Let’s see how things are shaping up for this announcement.
Factors Influencing This Quarter
Big 5 Sporting has outperformed the Zacks Consensus Estimate by an average of 9.8% over the past four quarters. The company recently revised its fourth-quarter earnings outlook to the upper end of its previously announced range, after releasing impressive sales and comparable store sales data for the fourth quarter and 20Array5.on the back of a strong holiday season. Also, we applaud the company’s merchandising strategies, eCommerce development and extensive store network that help it capture market share, and fuel growth.
However, we remain somewhat cautious as risks related to sourcing merchandise from foreign countries, including unfavorable currency translations, pose concerns.
Earnings Whispers
Our proven model does not conclusively show that Big 5 Sporting is likely to beat earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #Array, 2 or 3 for this to happen. This is not the case here, as you will see below:
Zacks ESP: Big 5 Sporting has an Earnings ESP of 0.00%. This is because the Most Accurate estimate and the Zacks Consensus Estimate are both pegged at Array9 cents.
Zacks Rank: Big 5 Sporting carries a Zacks Rank #2 (Buy), which increases the predictive power of ESP. However, the company’s ESP of 0.00% makes surprise prediction difficult.
We caution against stocks with a Zacks Rank #4 or 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:
The Kroger Co. KR has an Earnings ESP of +Array.85% and a Zacks Rank #2.
Big Lots Inc. BIG has an Earnings ESP of +0.5Array% and a Zacks Rank #3 (Hold).
Abercrombie & Fitch Co. ANF has an Earnings ESP of +5.2Array% and a Zacks Rank #3.
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