Burlington Stores (BURL) to Post Q4 Earnings: What's in Store?
We expect Burlington Stores, Inc. BURL to register growth in its top and bottom-line performances from the respective year-ago quarter’s actuals when it releases fourth-quarter fiscal 2021 results on Mar 3, before market open. The Zacks Consensus Estimate for the quarterly earnings currently stands at $3.26 per share, indicating an improvement of 33.6% from the year-ago quarter’s tally. The consensus mark has been stable in the past 30 days.
A glance at its performance in the trailing four quarters shows that it delivered an earnings surprise of 57.8%, on average.
The consensus estimate for quarterly revenues is currently pegged at $2,781 million, indicating an improvement of about 22% from the year-ago period’s reported figure.
Key Factors to Note
Burlington Stores’ performance for the fiscal fourth quarter is most likely to have benefited from the solid execution of its 2.0 strategy, which aims at improving the off-price model. This initiative focuses on three aspects, such as marketing, merchandising and store prototype to drive overall growth. Management has also been boosting assortments and merchandising capabilities for a while.
Burlington Stores is steadily strengthening its vendor counts and making technological advancements. Gains from strategic efforts coupled with strength across its key merchandise categories have been aiding its comp-store sales for a while now. All the aforesaid tailwinds are most likely to have boosted its performance in the quarter under review. On its last quarter earnings call, management had projected comp sales growth in low double-digit percentage range for the fiscal fourth quarter.
On the flip side, higher freight and supply-chain cost pressures remain major concerns. Management had earlier forecast a deleveraged operating margin of 250 basis points for the to-be-reported quarter.
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for Burlington Stores this time around. 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. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Although Burlington Stores currently has a Zacks Rank #3, its Earnings ESP of -4.13% leaves surprise prediction inconclusive.
Stocks With a Favorable Combination
Here are a few stocks worth considering from the same sector as our model shows that these have the right combination of elements to beat on earnings this season:
Casey's General Stores CASY currently has an Earnings ESP of +5.19% and is Zacks #3 Ranked. CASY is anticipated to register a top-line increase when it reports third-quarter fiscal 2022 results. The Zacks Consensus Estimate for CASY's revenues is pegged at $3,061 million, indicating a rise of 52.3% from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Casey's General Stores’ quarterly earnings is pegged at $1.45 per share, suggesting an improvement of 39.4% from the year-ago quarter’s reported figure. CASY delivered an earnings beat of 20.1%, on average, in the trailing four quarters.
American Eagle Outfitters AEO currently has an Earnings ESP of +0.69% and a Zacks Rank #3. AEO is likely to register a bottom-line decrease when it reports fourth-quarter fiscal 2021 numbers. The Zacks Consensus Estimate for quarterly earnings per share of 36 cents suggests a fall of 7.7% from the year-ago quarter’s reported figure.
American Eagle Outfitters’ top line is expected to rise from the prior-year quarter’s actuals. The Zacks Consensus Estimate for quarterly revenues is pegged at $1,521 million, which indicates an improvement of 17.6% from the figure reported in the prior-year period. AEO has a trailing four-quarter earnings surprise of 12.7%, on average.
Costco COST currently has an Earnings ESP of +0.75% and a Zacks Rank of3. COST is likely to register an increase in the bottom line when it reports second-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $2.67 suggests an increase of 24.8% from the year-ago quarter’s reported number.
Costco’s top line is expected to increase from the year-earlier quarter’s reading. The Zacks Consensus Estimate for quarterly revenues is pegged at $51.1 billion, which suggests growth of 14% from the prior-year quarter’s tally. COST has a trailing four-quarter earnings surprise of 8.3%, 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
Burlington Stores, Inc. (BURL) : Free Stock Analysis Report
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