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Companhia Brasileira (CBD) Q1 Earnings to Gain on Solid Units

Zacks Equity Research

Companhia Brasileira de Distribuicao CBD is scheduled to release first-quarter 2019 results on May 8. The Brazilian food retailer has underperformed the Zacks Consensus Estimate by average of 7.1% over the trailing four quarters.

Let’s see how the company is positioned ahead of the upcoming quarterly results.

Companhia Brasileira de Distribuicao Price and EPS Surprise

Companhia Brasileira de Distribuicao Price and EPS Surprise | Companhia Brasileira de Distribuicao Quote

What to Expect?

The Zacks Consensus Estimate has gone down in the past 30 days to 22 cents, which however indicates a sharp rise of 37.5% from the year-ago quarter’s reported figure. The consensus mark for revenues is $3,348 million compared with $3,496 million reported in the year-ago period.

Factors Impacting Results

Companhia Brasileira’s Assai and Multivarejo units are likely to be the key drivers in the quarter to be reported. Both the segments have been performing well for quite some time now and management’s constant investments in Assai (in particular) are expected to yield. While Assai is set to benefit from store openings, Multivarejo’s performance is expected to gain from optimization projects, improved operating efficiency and portfolio repositioning.

Additionally, Companhia Brasileira’s digital endeavors and focus on pilot projects are likely to aid results. Talking of digital endeavors, the launch of James Delivery in Sao Paulo, rollout of the alliance with Cheftime and improved loyalty programs, among other efforts, bode well for the company. We note that Companhia Brasileira already posted sales results for the first quarter of 2019, wherein gross sales advanced 12.4% on robust same-store sales growth of 7.5%. Both Assai and Multivarejo continued with their sturdy shows. Results were also driven by solid customer traffic and rise in food e-commerce sales.

These factors make us optimistic about the company’s upcoming quarterly results.

What the Zacks Model Unveils

Our proven model doesn’t show that Companhia Brasileirais likely to beat bottom-line estimates this quarter.  For this to happen, a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Though Companhia Brasileirahas a Zacks Rank #3, its Earnings ESP of 0.00% makes surprise prediction difficult. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks Poised to Beat Earnings Estimates

Target TGT has an Earnings ESP of +0.42% and a Zacks Rank #2.

Dollar General DG has an Earnings ESP of +1.51% and a Zacks Rank #3.

Five Below FIVE has an Earnings ESP of +1.60% and a Zacks Rank #3.

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