January 25, 2022

StrategisChhr

Skillful Business Crafters

Things to Keep in Mind Before Guess?’s (GES) Q3 Earnings

Guess?, Inc. GES is likely to register top-line growth when it reports third-quarter fiscal 2022 numbers on Nov 23. The Zacks Consensus Estimate for quarterly revenues is pegged at $615.1 million, suggesting an increase of 8% from the figure reported in the prior-year quarter.

The bottom line is expected to decline year over year in the fiscal third quarter. The Zacks Consensus Estimate for quarterly earnings has remained unchanged at 45 cents per share in the past 30 days. The projection shows a 22.4% slump from the year-ago quarter’s reported figure. The designer and distributor of apparel and accessories’ bottom line has outperformed the Zacks Consensus Estimate by a significant margin in the trailing four quarters, on average. The bottom line outpaced the Zacks Consensus Estimate by 41.2% in the last reported quarter.

Guess, Inc. Price and EPS Surprise

 

Guess, Inc. price-eps-surprise | Guess, Inc. Quote

 

Things To Note

Guess? has been encountering adverse impacts from pandemic-induced store traffic declines. On its last earnings call, management highlighted that it expects fiscal third-quarter revenues to be slightly negative to flat compared with third-quarter fiscal 2020 (LLY period) levels. Continued momentum in the company’s e-commerce business and a favorable shift of European wholesale shipments to the quarter under review are likely to have contributed to the top line.

Guess? anticipates adjusted operating margin growth of nearly 250 basis points (bps) on a LLY basis during the to-be-reported quarter. Third-quarter fiscal 2022 gross margin is likely to have expanded by approximately 600 bps when compared with LLY, courtesy of reduced occupancy expenses, lower promotions and better IMU.

Guess?’s focus on its core strategies like organization and culture, functional capacities, brand relevance with three main consumer groups (heritage, Millennials and Generation Z customers), customer focus, product brilliance and international footprint bodes well.

What the Zacks Model Unveils

Our proven model doesn’t conclusively predict an earnings beat for Guess? this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Guess? carries a Zacks Rank #3 and has an Earnings ESP of 0.00%.

Some Stocks With Favorable Combinations

Here are some companies that you may want to consider as our model shows that these too have the right combination of elements to post an earnings beat.

PVH Corp. PVH currently has an Earnings ESP of +12.38% and carries a Zacks Rank of 2. The company is likely to register an increase in the bottom line when it reports third-quarter fiscal 2021 numbers. The Zacks Consensus Estimate for quarterly earnings has moved up nearly 2% in the past 30 days to $2.06 per share. The projection suggests an increase of 56.1% from the year-ago quarter’s reported figure.

PVH Corp’s top line is also expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $2,398 million, suggesting a rise of 13.2% from the figure reported in the prior-year quarter. The stock has increased 9.2% in the past three months. You can see the complete list of today’s Zacks #1 Rank stocks here.

American Eagle Outfitters, Inc. AEO currently has an Earnings ESP of +3.92% and carries a Zacks Rank of 3. The company is likely to register an increase in the bottom line when it reports third-quarter fiscal 2021 numbers. Although the Zacks Consensus Estimate for third-quarter earnings per share has moved down by a penny in the past seven days to 60 cents, it suggests an increase of 71.4% from the year-ago quarter’s reported figure.

American Eagle’s top line is also expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $1,230 million, which suggests a rise of 19.1% from the figure reported in the prior-year quarter. AEO’s shares have declined 17.8% in the past three months.

DICK’S Sporting Goods DKS currently has an Earnings ESP of +27.97% and carries a Zacks Rank of 3. The company is likely to register a bottom-line decline, when it reports third-quarter fiscal 2021 earnings. Although the consensus mark for quarterly earnings has moved up 3.3% in the last 30 days to $1.88 per share, it calls for a 6.5% drop from the year-ago quarter’s reported number.

DICK’S Sporting’s top line is expected to rise year over year. The consensus mark for quarterly revenues is pegged at $2,422 million, suggesting slight growth of 0.4% from the figure reported in the prior-year quarter. DKS’ shares have increased 24% in the past three months.

5 Stocks Set to Double

Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

Today, See These 5 Potential Home Runs >>

Click to get this free report

American Eagle Outfitters, Inc. (AEO): Free Stock Analysis Report

DICK’S Sporting Goods, Inc. (DKS): Free Stock Analysis Report

Guess, Inc. (GES): Free Stock Analysis Report

PVH Corp. (PVH): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

https://www.nasdaq.com/articles/things-to-keep-in-mind-before-guesss-ges-q3-earnings