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Burlington Stores (BURL) to Post Q1 Earnings: What to Expect

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We expect Burlington Stores, Inc. BURL to register year-over-year growth in its top and bottom line when it releases first-quarter fiscal 2021 results on May 27. The Zacks Consensus Estimate for quarterly earnings currently stands at 88 cents, implying a significant reversal of the year-ago quarter’s reported loss of $4.76 per share. Moreover, the consensus mark has increased 11.4% in the past 30 days.

However, a glance at this off-price retailer’s performance in the trailing four quarters shows that it witnessed a negative earnings surprise of 20.5%, on average.

Nonetheless, the consensus estimate for quarterly revenues is currently pegged at $1,798 million, indicating a significant improvement from $801.5 million reported in the year-ago period.

Key Factors to Note

Burlington Stores’ quarterly results might show gains from its robust business model, successful execution of the Burlington 2.0 strategy and store-growth efforts. The objective of Burlington 2.0 initiative is to significantly improve the execution of the off-price model. Via this strategy, the company focuses on three aspects, namely marketing, merchandising and store prototype.

Additionally, the company is controlling costs on a continual basis. Moreover, the company has been strengthening vendor counts, making technological advancements and focusing on localized assortments for sometime now.

All these aforesaid tailwinds are likely to have aided the company’s performance in the fiscal first quarter.

Even though the above-mentioned factors buoy optimism on the stock, the company has been witnessing higher selling, general and administrative expenses for a while. This might be due to elevated store-related and corporate expenses alongside escalated product-sourcing costs. Any deleverage in such expenses might have hurt the company’s performance in the quarter under review.

What the Zacks Model Unveils

Our proven model predicts an earnings beat for Burlington Stores this reporting cycle. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Burlington Stores, Inc. Price and EPS Surprise

Burlington Stores, Inc. Price and EPS Surprise
Burlington Stores, Inc. Price and EPS Surprise

Burlington Stores, Inc. price-eps-surprise | Burlington Stores, Inc. Quote

Burlington Stores currently has a Zacks Rank #3 and an Earnings ESP of +8.49%.

Other Stocks With Favorable Combination

Here are a few other companies worth considering from the same sector as our model shows that these too have the right combination of elements to beat on earnings:

Abercrombie & Fitch ANF currently has an Earnings ESP of +32.30% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Costco COST has an Earnings ESP of +2.75% and a Zacks Rank of 3 at present.

Dollar General DG presently has an Earnings ESP of +0.94% and is Zacks #3 Ranked.

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Dollar General Corporation (DG) : Free Stock Analysis Report

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