Wolverine World Wide (WWW) Q4 Earnings: What's Up?
Wolverine World Wide Inc. WWW is scheduled to report fourth-quarter 2015 financial numbers before the opening bell on Feb 23, 2016. The big question that investors face now is whether the company will be able to report better-than-expected results in the fourth quarter or not.
Last quarter, the company reported in-line earnings. Notably, the company has surpassed the Zacks Consensus Estimate in two of the trailing four quarters, with an average beat of 9.4%. Here’s a discussion on the determinants of fourth-quarter results:
Zacks Model Shows Unlikely Earnings Beat
Our proven model does not conclusively show that Wolverine World Wide is likely to beat estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. Wolverine World Wide has an Earnings ESP of 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate stand at 28 cents. The company carries a Zacks Rank #4 (Sell). As it is, 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.
Factors Influencing This Quarter
Strengthening of the U.S. dollar is likely to hurt the company’s performance in the to-be-reported quarter, given its huge overseas operations.
During the third-quarter earnings conference call, management had voiced its anticipations about the fact that macroeconomic challenges in international markets and weakness in the U.S. retail market will persist in the fourth quarter and hamper its quarterly numbers. In the fourth quarter, the company expects adjusted revenues in a range of flat to down low-single digits year over year.
Moreover, exit of the Patagonia Footwear license, store closures and extensive brand building exercise will likely weigh on Wolverine’s performance.
Stocks that Warrant a Look
Here are some companies you may want to consider instead as our model shows that these have the right combination of elements to post an earnings beat:
Foot Locker, Inc. FL has an Earnings ESP of +1.79% and a Zacks Rank #2.
Target Corp. TGT has an Earnings ESP of +0.65% and a Zacks Rank #2.
Avis Budget Group, Inc. CAR has an Earnings ESP of +15.00% and a Zacks Rank #3.
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AVIS BUDGET GRP (CAR): Free Stock Analysis Report
FOOT LOCKER INC (FL): Free Stock Analysis Report
TARGET CORP (TGT): Free Stock Analysis Report
WOLVERINE WORLD (WWW): Free Stock Analysis Report
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