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Will Buckle (BKE) Miss Q2 Earnings on Slower Revenue Growth?

Zacks Equity Research

The Buckle, Inc. (BKE), retailer of casual apparel, footwear and accessories for men and women, is set to report its second-quarter fiscal results on Aug 21, 2014. Last quarter, it posted in-line earnings.  Let us see how things have developed for this announcement.

Growth Factors this Quarter

Recently, Buckle reported its second-quarter fiscal 2014 sales results. Comps decreased 0.5% year over year whereas net sales of $237.5 million grew 1.4% from the prior-year quarter. Though sales increased, growth remains very slow.  Weakness in the Women’s category remains a persistent problem for Buckle.

Earnings Whispers

Our proven model does not conclusively project Buckle as likely to beat earnings this quarter. This is because a stock needs to have both a positive  Earnings ESP and Zacks Rank #1 #2 or #3 for this to happen. This is not the case here as you will see below.

Zacks ESP:  Buckle currently has an Earnings ESP of 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at 53 cents per share.

Zacks Rank: Buckle’s Zacks Rank #2 (Buy) increases the predictive power of ESP. However, we need to have a positive ESP to be confident about an earnings surprise. We caution against stocks with a Zacks Rank #4 and #5 (Sell-rated stocks) going into an earnings announcement, especially when the company is witnessing negative estimate revisions.

Other Stocks to Consider

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

Chipotle Mexican Grill, Inc. (CMG) has an Earnings ESP of +0.79% and a Zacks Rank #1 (Strong Buy).

Abercrombie & Fitch Co. (ANF) has an Earnings ESP of +20.00% and a Zacks Rank #3 (Hold).

GameStop Corp. (GME) has an Earnings ESP of +10.53% and a Zacks Rank #3.

Read the Full Research Report on CMG
Read the Full Research Report on ANF
Read the Full Research Report on GME
Read the Full Research Report on BKE

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