Factor Likely to Influence Dillard's (DDS) in Q2 Earnings
Dillard’s, Inc. DDS is expected to register year-over-year top and bottom-line declines when it reports second-quarter fiscal 2023 numbers.
The Zacks Consensus Estimate for fiscal second-quarter revenues of $1.53 billion indicates a 3.4% decline from the year-ago reported figure. The Zacks Consensus Estimate for fiscal second-quarter earnings is pegged at $4.21 per share, indicating a 54.7% decrease from the year-ago quarter’s reported figure. The consensus estimate has been unchanged in the past 30 days.
We expect the company’s fiscal second-quarter total revenues to decline 5.3% year over year to $1,504.2 million and earnings to plunge 57% to $3.99 per share.
In the last reported quarter, the company recorded an earnings surprise of 29.8%. We note that in the trailing four quarters, its bottom line beat the Zacks Consensus Estimate by 110.4%, on average.
Dillard's, Inc. Price and EPS Surprise
Dillard's, Inc. price-eps-surprise | Dillard's, Inc. Quote
Key Factors to Note
Dillard’s has been benefiting from better inventory management and consumer demand. The company has created a niche for itself through a stringent focus on offering fashionable products to its customers and adding value through exceptional customer care service.
The company’s efforts to capture growth opportunities in brick-and-mortar stores and the e-commerce business has been a key driver. On the store front, it has been gaining from initiatives to enhance brand relations, focus on in-trend categories, store remodels and increased rewards to store personnel. Strength in its activewear brands should have helped grab market share in the quarter under review.
Its e-commerce business is catching pace with strategies like the enhancement of merchandise assortments and effective inventory management. We expect the company’s fiscal second-quarter performance to have gained from its focus on increasing productivity at existing stores, improved omni-channel platform and enhanced domestic operations.
However, stiff competition and inflation are likely to have been concerning. The company has been witnessing a decline in customer activity due to lower incomes. Also, weakness in the ladies’ accessories and lingerie, as well as children’s apparel are likely to have dented the fiscal second-quarter performance.
What the Zacks Model Suggests
Our proven model does not conclusively predict an earnings beat for Dillard’s 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.
Dillard’s currently has a Zacks Rank #3 and an Earnings ESP of -5.23%.
Stocks Poised to Beat Earnings Estimates
Here are some companies that have the right combination of elements to post an earnings beat:
Arhaus ARHS has an Earnings ESP of +7.69% and currently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
ARHS is likely to register year-over-year top-line growth when it reports second-quarter fiscal 2023, while its bottom line is expected to decline. The Zacks Consensus Estimate for its quarterly revenues is pegged at $325.7 million, suggesting 6.3% growth from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for ARHS’ fiscal second-quarter earnings is pegged at 26 cents, suggesting a 7.1% decline from the year-ago quarter’s reported figure. The consensus estimate for earnings has been unchanged in the past 30 days. ARHS has delivered an earnings beat of 82.4%, on average, in the trailing four quarters.
Asbury Automotive Group ABG has an Earnings ESP of +9.43% and currently carries a Zacks Rank #2. ABG is likely to register top and bottom-line declines when it reports second-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for its quarterly revenues is pegged at $3.7 billion, suggesting a 6.4% decline from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for ABG’s fiscal second-quarter earnings is pegged at $8.04, suggesting a 19.9% decline from the reported figure in the year-ago quarter. The consensus estimate for earnings has declined 2% in the past 30 days. ABG has delivered an earnings beat of 7.4%, on average, in the trailing four quarters.
Costco COST has an Earnings ESP of +0.73% and a Zacks Rank of 3. The company will likely register an increase in the bottom line when it reports fourth-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for its quarterly earnings per share of $4.73 suggests a rise of 12.6% from the year-ago reported number.
Costco’s top line is expected to ascend year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $78.92 billion, indicating an increase of 9.5% from the prior-year quarter. COST has a trailing four-quarter earnings surprise of 1.8%, on average.
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Dillard's, Inc. (DDS) : Free Stock Analysis Report
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