Culp (CULP) to Report Strong Q1 Earnings: Factors to Note
Culp, Inc. CULP is scheduled to report first-quarter fiscal 2024 results on Aug 30, after market close.
In the last reported quarter, the company’s earnings and net sales beat the Zacks Consensus Estimate by 15.6% and 7.7% year over year, respectively. The metrics increased 7.9% and 22.9% year over year, respectively.
CULP’s earnings topped the consensus mark in the trailing three quarters.
The Trend in Estimate Revision
For the quarter to be reported, the Zacks Consensus Estimate for earnings per share remained stable at negative 35 cents in the past 60 days. The estimated figure indicates an improvement of 25.5% from the year-ago quarter’s level of negative 47 cents.
Culp, Inc. Price and EPS Surprise
Culp, Inc. price-eps-surprise | Culp, Inc. Quote
The consensus mark for net sales is pegged at $59.99 million, suggesting a 4.2% fall from the year-ago reported figure.
Key Factors to Note
Culp is likely to have generated lower net sales in the fiscal first quarter, thanks to demand softness in the domestic mattress and residential home furnishings industries. The residential home furnishings industry remains under pressure due to shifts in consumer spending trends and inflation affecting consumer spending. This is likely to impact the upholstery fabrics segment in the to-be-reported quarter.
It also anticipates the timing delays of additional new program launches in the mattress fabrics segment to put pressure on the results. The company expects total net sales to be down slightly from the prior-year period’s levels.
Despite the top-line woes, the company expects a loss in the range of $3.5-$4 million, narrower than the $4.7 million operating loss reported in the prior-year period. Improvement in operating efficiencies, a favorable product mix and lower costs stemming from the restructuring and rationalization in specific units are likely to have aided the bottom line.
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for Culp this time. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. This is not the case here, as elaborated below.
Earnings ESP: The company has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Currently, CULP carries a Zacks Rank #3.
Recent Releases
American Public Education, Inc. APEI reported better-than-expected second-quarter 2023 results, with earnings and revenues outpacing the Zacks Consensus Estimate. However, both metrics dropped on a year-over-year basis.
APEI benefited from the solid contributions of the American Public University System and Hondros College of Nursing segments. The dismal performance of the Rasmussen University segment partially offset the Other segment.
Adtalem Global Education Inc. ATGE reported better-than-expected results for fourth-quarter fiscal 2023. Earnings and revenues surpassed their respective Zacks Consensus Estimate. On a year-over-year basis, earnings declined in spite of revenue growth.
These metrics gained and outpaced its previous guidance for fiscal 2023, given the improvement in enrollment, continued benefit from strategic initiatives and cost synergies.
Strategic Education, Inc. or SEI STRA, reported impressive second-quarter 2023 results, with earnings and revenues beating the Zacks Consensus Estimate.
Despite a year-over-year fall in earnings, revenues increased due to solid growth in the Education Technology Services segment and improved enrollment trends in the U.S. Higher Education segment.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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American Public Education, Inc. (APEI) : Free Stock Analysis Report
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Culp, Inc. (CULP) : Free Stock Analysis Report
