What Awaits Sportsman's Warehouse (SPWH) This Earnings Season?
Sportsman's Warehouse Holdings, Inc. SPWH is likely to register a decline in the top line when it reports second-quarter fiscal 2023 earnings on Sep 6 after market close. The Zacks Consensus Estimate for revenues stands at $327 million, indicating a decline of 6.9% from the prior-year reported figure.
The bottom line of this outdoor sporting goods retailer is expected to have decreased year over year. Over the past 30 days, the Zacks Consensus Estimate for second-quarter earnings per share has been stable at 3 cents, suggesting a sharp decline from 36 cents reported in the year-ago quarter.
Sportsman's Warehouse has a trailing four-quarter earnings surprise of 18.1%, on average. In the last reported quarter, this West Jordan, UT-based company missed the Zacks Consensus Estimate by a margin of 5.4%.
Factors to Note
In the first quarter, sales during the usual spring fishing, camping and shooting seasons were materially impacted due to underlying inflationary pressures as well as unusually wet and cold weather in the Western United States, where a substantial number of the company’s stores are located. Management informed that tough macroeconomic conditions and soft demand in the camping and fishing categories continue to exert pressure on the business. We believe these are likely to have hurt second-quarter performance.
On its last earnings call, management guided second-quarter net sales between $310 million and $340 million, down from $351 million reported in the year-ago period. Sportsman's Warehouse projected a same-store sales decline of 9-17% and earnings between 2 cents and 15 cents a share.
However, management’s focus on curtailing expenses and bolstering financial discipline should have provided some cushion. Sportsman's Warehouse’s strategic initiatives comprising investments in e-commerce, growing store footprint and better engagement with customers have been helpful in gaining market share in the outdoor sporting goods market.
Sportsman's Warehouse Holdings, Inc. Price, Consensus and EPS Surprise
Sportsman's Warehouse Holdings, Inc. price-consensus-eps-surprise-chart | Sportsman's Warehouse Holdings, Inc. Quote
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Sportsman's Warehouse this time. 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. However, that’s not the case here.
Sportsman's Warehouse has a Zacks Rank #3 but an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Here are companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
American Eagle Outfitters AEO currently has an Earnings ESP of +8.52% and a Zacks Rank #2. The company is likely to register a bottom-line increase when it reports second-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for the quarterly earnings per share of 15 cents suggests a sharp increase from 4 cents reported in the year-ago quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
American Eagle Outfitters’ top line is expected to decrease year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $1.19 billion, which indicates a marginal decline of 0.9% from the figure reported in the prior-year quarter. American Eagle Outfitters has a trailing four-quarter earnings surprise of 9.2%, on average.
Casey's General Stores CASY currently has an Earnings ESP of +1.03% and carries a Zacks Rank #3. The company is likely to register a bottom-line decrease when it reports first-quarter fiscal 2024 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $3.39 suggests a drop of 17.1% from the year-ago quarter.
Casey's General Stores’ top line is expected to decrease year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $3.85 billion, which indicates a drop of 13.5% from the figure reported in the prior-year quarter. CASY has a trailing four-quarter earnings surprise of 7.5%, on average.
Costco COST currently has an Earnings ESP of +1.08% and a Zacks Rank of 3. The company is likely to register an increase in the bottom line when it reports fourth-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $4.72 suggests a rise of 12.4% from the year-ago reported number.
Costco’s top line is expected to ascend year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $78.86 billion, which calls for an increase of 9.4% from the prior-year quarter. COST has a trailing four-quarter earnings surprise of 1.8%, on average.
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American Eagle Outfitters, Inc. (AEO) : Free Stock Analysis Report
Costco Wholesale Corporation (COST) : Free Stock Analysis Report
Casey's General Stores, Inc. (CASY) : Free Stock Analysis Report
Sportsman's Warehouse Holdings, Inc. (SPWH) : Free Stock Analysis Report
