Will Deckers (DECK) Beat Earnings Estimates This Quarter?
We expect Deckers Outdoor Corporation (DECK), the designer and marketer of niche footwear and accessories, to beat expectations when it reports second-quarter fiscal 2013 results on Jul 25, 2013.
Why a Likely Positive Surprise?
Our proven model shows that Deckers is likely to beat earnings because it has the right combination of two key components.
Positive Zacks ESP: Deckers currently has an Earnings ESP (Read: Zacks Earnings ESP: A Better Method) of +6.60%. This is because the Most Accurate Estimate stands at -99 cents, while the Zacks Consensus Estimate is pegged at -$1.06.
Zacks Rank #3 (Hold): Note that stocks with a Zacks Ranks of #1, #2 and #3 have a significantly higher chance of beating earnings estimates. The sell-rated stocks (Zacks Rank #4 and #5) should never be considered going into an earnings announcement.
The combination of Deckers’ Zacks Rank #3 (Hold) and +6.60% ESP makes us very confident regarding a positive earnings beat on Jul 25.
What is Driving the Better-than-Expected Earnings?
Deckers is trying every means to reposition itself to keep afloat in a difficult consumer environment, by focusing on new product introductions, store augmentation and new store openings along with geographic expansion. The positive trend is seen in the trailing four-quarter average surprise of 41.6%.
Other Stocks to Consider
Here are some other companies you may want to consider as our model shows they have the right combination of elements to post an earnings beat:
The Gap, Inc. (GPS) has an Earnings ESP of +1.70% and a Zacks Rank #2 (Buy).
Five Below, Inc. (FIVE) has an Earnings ESP of +11.11% and a Zacks Rank #2 (Buy).
Under Armour, Inc. (UA) has an Earnings ESP of +7.69% and a Zacks Rank #3 (Hold).
Read the Full Research Report on UA
Read the Full Research Report on DECK
Read the Full Research Report on GPS
Read the Full Research Report on FIVE
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