The Children's Place (PLCE) to Post Q3 Earnings: What to Expect
The Children's Place, Inc. PLCE is likely to witness an increase in the top line when it reports third-quarter fiscal 2021 numbers on Nov 18, before the market opens. The Zacks Consensus Estimate for revenues is pegged at $560.4 million, suggesting an improvement of 31.7% from the prior-year reported figure.
The Zacks Consensus Estimate for quarterly earnings per share has been stable at $4.12 over the past 30 days. It suggests a sharp increase from earnings of $1.44 reported in the year-ago period. This children's specialty apparel retailer’s bottom line has outperformed the Zacks Consensus Estimate by a wide margin in the trailing four quarters.
Key Factors to Note
The Children's Place’s focus on a superior product strategy to resonate well with millennial customers along with its omni-channel capabilities and fulfillment initiatives might have played a vital role in revenue generation. Sturdy demand, higher price realization and lower promotional activity are likely to have favorably impacted the quarterly performance. The top line is likely to have gained further from its ability to hold new digital customers acquired amid the pandemic and a significant improvement in store customer count.
On its last earnings call, management highlighted that The Children’s Place commenced the third quarter on a strong note. Fleet optimization strategy, introduction of Gymboree into a portfolio of brands and accelerated digital investments are likely to have continued to aid results. Again, any decrease in occupancy costs owing to fleet optimization strategy and favorable lease negotiations might have contributed to margin expansion in the quarter under review.
While aforementioned factors raise optimism, we cannot ignore the ongoing supply chain issue. Again, any operating limitations due to the ongoing pandemic might have hurt sales to an extent. Also, an increase in inbound transportation expenses may get reflected in margins.
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What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for The Children's Place 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. You can see the complete list of today’s Zacks #1 Rank stocks here.
Although The Children's Place carries a Zacks Rank #3, it has an Earnings ESP of 0.00%.
3 Stocks With Favorable Combination
Here are a few companies that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat:
Macy's M currently has an Earnings ESP of +9.77% and a Zacks Rank #1. The company is likely to register bottom-line improvement when it reports third-quarter fiscal 2021 numbers. The Zacks Consensus Estimate for quarterly earnings has moved up 19.2% in the last seven days to 31 cents per share, suggesting a substantial improvement from a loss of 19 cents a share reported in the year-ago quarter.
Macy's top line is also expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $5.29 billion, which indicates an improvement of 32.6% from the figure reported in the prior-year quarter. M has a trailing four-quarter earnings surprise of 269.8%, on average.
Home Depot HD currently has an Earnings ESP of +1.42% and a Zacks Rank of 2. The company is likely to register an increase in the bottom line when it reports third-quarter fiscal 2021 numbers. The Zacks Consensus Estimate for quarterly earnings has moved up 2.1% in the past seven days to $3.40 per share, suggesting growth of 6.9% from the year-ago quarter’s reported number.
Home Depot’s top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $34.77 billion, which indicates an improvement of 3.7% from the prior-year quarter. HD has a trailing four-quarter earnings surprise of 9.2%, on average.
Lowe's Companies LOW currently has an Earnings ESP of +5.71% and a Zacks Rank of 2. The company is likely to register an increase in the bottom line when it reports third-quarter fiscal 2021 numbers. The Zacks Consensus Estimate for quarterly earnings has moved up 2.2% in the last seven days to $2.32 per share, suggesting a 17.2% increase from the year-ago reported number.
However, Lowe’s top line is expected to decline year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $21.83 billion, which suggests a decline of 2.1% from the prior-year quarter. LOW has a trailing four-quarter earnings surprise of 10.1%, on average.
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Macy's, Inc. (M) : Free Stock Analysis Report
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