Delta Apparel (DLA) Q2 Earnings: Here are the Key Predictions
Delta Apparel, Inc. DLA is slated to release second-quarter fiscal 2018 results on May 7. The manufacturer of comfort fabric apparel has a mixed earnings surprise record in the trailing four quarters. However, it topped the Zacks Consensus Estimate in the last reported quarter. Let’s see what’s in store for Delta Apparel this time around.
What to Expect
The current Zacks Consensus Estimate for the quarter under review is pegged at 27 cents, which shows a 42.6% slump from 47 cents recorded in the year-ago period. The estimate has remained stable in the past 30 days. Further, analysts polled by Zacks expect revenues of $100 million, down 3.8% from the year-ago period reported figure.
Delta Apparel, Inc. Price and EPS Surprise
Delta Apparel, Inc. Price and EPS Surprise | Delta Apparel, Inc. Quote
Factors Driving the Quarter
Delta Apparel is likely to gain from its robust endeavors aimed at rationalizing business, enhancing operational efficacies and implementing marketing initiatives. These strategies, along with solid consumer demand helped the company deliver strong results in the last reported quarter. Further, management remains encouraged about expansion plans of Art Gun, Salt Life as well as Soffe. Art Gun’s focus on solidifying geographic reach, Salt Life’s strength across retail stores and e-commerce, and Soffe’s efforts to curtail costs and improve performance are likely to fuel Delta Apparel’s performance. All these factors bode well for the quarter to be reported.
However, we remain cautious about the tough retail environment, that may weigh on sales and margins. Further, the company divested its Junkfood business toward the end of the second quarter of fiscal 2017, which may hurt year-over-year comparisons this time. Apart from this, we remain apprehensive about higher raw material costs that weighed on the company’s gross margin in the last reported quarter.
What the Zacks Model Unveils
Further, our proven model doesn’t show that Delta Apparel is 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 Delta Apparel has a Zacks Rank #3, its Earnings ESP of 0.00% makes surprise prediction difficult.
Stocks Poised to Beat Earnings Estimates
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:
Coty Inc. COTY a Zacks #3 Ranked stock, has an Earnings ESP of +0.68%. You can see the complete list of today’s Zacks #1 Rank stocks here.
J. M. Smucker SJM, a #3 Ranked company, has an Earnings ESP of +0.48%.
Church & Dwight CHD has an Earnings ESP of +0.52% and a Zacks Rank of 3.
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