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Factors Influencing PVH Corp (PVH) This Earnings Season

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·5 min read
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PVH Corporation PVH is expected to register year-over-year top and bottom-line growth when it reports fourth-quarter fiscal 2021 results on Mar 29. The Zacks Consensus Estimate for the company’s fiscal fourth-quarter earnings is pegged at $1.98 per share, suggesting growth of 621.1% from the year-ago quarter’s reported figure. The consensus mark for earnings has been unchanged in the past 30 days. The consensus mark for quarterly revenues is pinned at $2.4 billion, indicating an improvement of 13.9% from the prior-year reported number.

The Zacks Consensus Estimate for fiscal 2021’s sales and earnings per share suggests growth of 27.7% and 572.1%, respectively, from the year-ago period's reported numbers.

In the last reported quarter, the company delivered an earnings surprise of 29%. Its bottom line surpassed estimates by 72.3%, on average, over the trailing four quarters.

PVH Corp. Price and EPS Surprise

PVH Corp. Price and EPS Surprise
PVH Corp. Price and EPS Surprise

PVH Corp. price-eps-surprise | PVH Corp. Quote

Key Factors to Note

PVH Corp has been gaining from brand strength, particularly Calvin Klein and Tommy Hilfiger, backed by strong demand. Product strength across all brands and regions, particularly Europe, and robust pricing actions bode well. Some other notable efforts, including Clavin Klein's global collaboration with Heron Preston, Tommy Hilfiger's seasonal products and the 1985 menswear essentials, as well as the partnership with Timberland, are likely to have acted as upsides. These, along with continued momentum in the international unit, are likely to have aided the company’s performance in the fiscal fourth quarter.

PVH has been witnessing momentum in the digital business as customers shifted to online purchases. The company’s initiatives to expand its direct-to-consumer digital business and strengthen its network with third-party digital partners are expected to have contributed to digital sales growth in the fiscal fourth quarter. Investments in omni-channel capabilities and improved inventory also bode well.

Driven by these factors, management, on its last reported quarter’s earnings call, anticipated fiscal 2021 revenues to grow 27-28% year over year (suggesting a 25-26% increase on a cc basis), an improvement from the earlier mentioned 26-28% (indicating a 24-26% rise at cc). Adjusted earnings were expected to be $9.25 per share compared with the prior mentioned $8.50. For fourth-quarter fiscal 2021, revenues were predicted to grow 11-14% (implying a 16-19% rise on a cc basis). Adjusted earnings were envisioned to be $1.94 per share, indicating from 38 cents reported in the prior-year quarter.

However, PVH Corp has been witnessing rising costs for a while now, stemming from elevated freight and other logistic costs, as well as supply-chain disruptions, including transportation shortages, labor shortages and port congestion. These are likely to have led to production and delivery delays across stores and online. Also, the North America unit is expected to have been drab, as international tourism did not return to growth in fiscal 2021.

Zacks Model

Our proven model does not conclusively predict an earnings beat for PVH Corp this season. 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.

PVH Corp has a Zacks Rank #3 and an Earnings ESP of -2.63%.

Stocks With Favorable Combination

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 this season:

News Corporation NWSA has an Earnings ESP of +22.58% and it currently sports a Zacks Rank of 1. The company is likely to register an increase in the top line when it reports third-quarter fiscal 2022. The Zacks Consensus Estimate for quarterly sales moved up 14.3% to 16 cents per share, suggesting 77.8% growth from the year-ago quarter’s reported number. You can see the complete list of today’s Zacks #1 Rank stocks here.

News Corporation’s top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $2.5 billion, which suggests a rise of 6.7% from the figure reported in the prior-year quarter. NWSA has delivered an earnings beat of 274.3%, on average, in the trailing four quarters.

Whirlpool Corporation WHR has an Earnings ESP of +7.36% and a Zacks Rank of 2 at present. However, the company is likely to register a decrease in the bottom line when it reports first-quarter 2022. Although the Zacks Consensus Estimate for quarterly earnings moved up 0.4% to $5.30 per share in the past 30 days, it suggests a decline of 26.4% from the year-ago quarter’s reported number.

Whirlpool’s top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $5.5 billion, which suggests a rise of 1.7% from the figure reported in the prior-year quarter. WHR has delivered an earnings beat of 14.9%, on average, in the trailing four quarters.

Charter Communications CHTR currently has an Earnings ESP of +1.66% and a Zacks Rank #3. CHTR is anticipated to register top-line growth when it reports first-quarter 2022 results. The Zacks Consensus Estimate for quarterly revenues is pegged at $13.2 billion, indicating an improvement of 5.5% from the figure reported in the prior-year quarter.

The Zacks Consensus Estimate for Charter Communications’ bottom line has moved down 1.1% in the past 30 days to $6.57 per share. However, the metric reflects growth of 59.9% from $4.11 reported in the year-ago quarter. CHTR has delivered an earnings beat of 12%, on average, in the trailing four quarters.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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