The Buckle, Inc. (BKE) is slated to report its fourth-quarter fiscal 2013 results on Mar 14, 2014. In the last quarter, it posted a negative surprise of 5.6%. Let’s see how things are shaping up for this announcement.
Factors this Past Quarter
Buckle posted lower-than-expected third-quarter fiscal 2013 results due to sluggish consumer demand. Both the top and bottom lines fell short of the Zacks Consensus Estimate.
Our proven model does not conclusively show that Buckle is likely to beat earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1, #2 or #3 for this to happen. This is not the case here, as you will see below.
Negative Zacks ESP: ESP for Buckle is -1.65%. This is because the Most Accurate estimate stands at $1.19, while the Zacks Consensus Estimate is pegged at $1.21.
Zacks Rank #3 (Hold): Buckle’s Zacks Rank #3 (Hold) when combined with a negative ESP of 1.65% makes surprise prediction difficult. We caution against stocks with Zacks Ranks #4 and #5 (Sell rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions momentum.
Stocks that Warrant a Look
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:
First Merchants Corporation (FRME) has an Earnings ESP of +2.56% and a Zacks Rank #1 (Strong Buy).
Abercrombie & Fitch Co. (ANF) has an Earnings ESP of +5.56% and a Zacks Rank #3 (Hold).
Tiffany & Co. (TIF) has an Earnings ESP of +0.66% and a Zacks Rank #3 (Hold).