U.S. Markets closed

Will Deckers (DECK) Beat Earnings Estimates This Quarter?

Zacks Equity Research

We expect Deckers Outdoor Corporation (DECK), the designer and marketer of niche footwear and accessories, to beat expectations when it reports second-quarter fiscal 2013 results on Jul 25, 2013.

Why a Likely Positive Surprise?

Our proven model shows that Deckers is likely to beat earnings because it has the right combination of two key components.  

Positive Zacks ESP: Deckers currently has an Earnings ESP (Read: Zacks Earnings ESP: A Better Method) of +6.60%. This is because the Most Accurate Estimate stands at -99 cents, while the Zacks Consensus Estimate is pegged at -$1.06.       

Zacks Rank #3 (Hold): Note that stocks with a Zacks Ranks of #1, #2 and #3 have a significantly higher chance of beating earnings estimates. The sell-rated stocks (Zacks Rank #4 and #5) should never be considered going into an earnings announcement.                   

The combination of Deckers’ Zacks Rank #3 (Hold) and +6.60% ESP makes us very confident regarding a positive earnings beat on Jul 25.

What is Driving the Better-than-Expected Earnings?     

Deckers is trying every means to reposition itself to keep afloat in a difficult consumer environment, by focusing on new product introductions, store augmentation and new store openings along with geographic expansion. The positive trend is seen in the trailing four-quarter average surprise of 41.6%.

Other Stocks to Consider

Here are some other companies you may want to consider as our model shows they have the right combination of elements to post an earnings beat:

The Gap, Inc. (GPS) has an Earnings ESP of +1.70% and a Zacks Rank #2 (Buy).

Five Below, Inc. (FIVE) has an Earnings ESP of +11.11% and a Zacks Rank #2 (Buy).  

Under Armour, Inc. (UA) has an Earnings ESP of +7.69% and a Zacks Rank #3 (Hold).

Read the Full Research Report on UA

Read the Full Research Report on DECK

Read the Full Research Report on GPS

Read the Full Research Report on FIVE

Zacks Investment Research

More From Zacks.com