Burlington Stores, Inc. BURL is slated to release first-quarter fiscal 2020 results on May 28, before market open. Notably, the company has a positive earnings surprise of 7.3% for the trailing four quarters, on average.
However, the Zacks Consensus Estimate for first-quarter bottom line slipped to a loss of $1.56 from a loss of 94 cents 30 days ago. The company had recorded earnings per share of $1.26 for the same quarter a year ago. For quarterly revenues, the consensus estimate is pegged at $939.2 million, suggesting a decline of about 42% from the year-ago quarter’s tally.
Burlington Stores, Inc. Price and EPS Surprise
Burlington Stores, Inc. price-eps-surprise | Burlington Stores, Inc. Quote
Key Factors to Note
Like most retailers, Burlington Stores had to shut stores and distribution centers due to the coronavirus pandemic. Loss of sales from such stores has most likely marred the company’s performance in the fiscal first quarter. Management had also withdrawn first quarter and fiscal 2020 outlook on increasing volatility stemming from the pandemic. In addition, the company has been witnessing rising SG&A expenses. Any deleverage in SG&A expenses might have hurt the company’s bottom line in the quarter under review. Moreover, the Zacks Consensus Estimate for first-quarter comparable store sales suggests a decline of 23.2% year over year.
Nevertheless, Burlington Stores has been cutting down on capital spending and operating costs as well as reducing inventory receipts and managing working capital effectively amid such a crisis. This off-price retailer has also been strengthening vendor counts, making technological advancements and focusing on localized assortments. These factors might have provided some cushion.
What the Zacks Model Unveils
Our proven model does not 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.
Burlington Stores has a Zacks Rank #4 (Sell) and an Earnings ESP of -5.47%.
Stocks With Favorable Combinations
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat:
Guess? GES has an Earnings ESP of +12.75% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Big Lots BIG has an Earnings ESP of +19.01% and a Zacks Rank #3.
Dollar General DG has an Earnings ESP of +6.69% and a Zacks Rank #3.
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