Factors Likely to Decide Dillard's (DDS) Fate in Q3 Earnings
Dillard’s, Inc. DDS is expected to register year-over-year top and bottom-line declines when it reports third-quarter fiscal 2023 numbers.
The Zacks Consensus Estimate for fiscal third-quarter revenues of $1.51 billion indicates a 2.3% decline from the year-ago reported figure. The Zacks Consensus Estimate for fiscal third-quarter earnings is pegged at $7.04 per share, indicating a 35.8% decrease from the year-ago quarter’s reported figure. The consensus estimate has been unchanged in the past 30 days.
In the last reported quarter, the company registered an earnings surprise of 89.6%. We note that in the trailing four quarters, its bottom line beat the Zacks Consensus Estimate by 77.1%, 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 initiatives. The company’s efforts to capture growth opportunities in brick-and-mortar stores and the e-commerce business have been the key drivers.
On the store front, DDS has been gaining from initiatives to enhance brand relations, focus on in-trend categories, store remodels and increased rewards to store personnel. Its activewear brands have been gaining market share in the quarter under review.
Also, the e-commerce business has been well-placed on the enhancement of merchandise assortments and effective inventory management. We expect the company’s fiscal third-quarter performance to have gained from its focus on increasing productivity at existing stores, improved omni-channel platform and enhanced domestic operations.
However, Dillard’s has been witnessing continued cautiousness of consumers, particularly in ladies’ accessories and lingerie, and ladies’ apparel and shoes. This, along with higher payroll and payroll-related expenses, is likely to have dented the fiscal third-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 0.00%.
Stocks Poised to Beat Earnings Estimates
Here are some companies that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat:
Caesars Entertainment CZR currently has an Earnings ESP of +37.22% and a Zacks Rank #2. CZR is likely to register top and bottom-line growth when it reports third-quarter 2023. The Zacks Consensus Estimate for its quarterly revenues is pegged at $2.92 billion, suggesting 1% growth from the figure reported in the prior-year quarter.
You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Caesars Entertainment’s third-quarter earnings is pegged at 26 cents, suggesting 8.3%
growth from the 24 cents reported in the year-ago quarter. The consensus mark has moved up by 2 cents in the past 30 days.
Marriott International MAR currently has an Earnings ESP of +1.59% and a Zacks Rank #3. MAR is likely to register top and bottom-line growth when it reports third-quarter 2023. The Zacks Consensus Estimate for its quarterly revenues is pegged at $5.91 billion, suggesting 11.2% growth from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Marriott’s third-quarter earnings is pegged at $2.09, suggesting year-over-year growth of 23.8%. The consensus mark has moved up by a penny in the past 30 days.
Cinemark Holdings CNK currently has an Earnings ESP of +70.56% and a Zacks Rank #3. The company is likely to register top and bottom-line growth when it reports third-quarter 2023. The Zacks Consensus Estimate for its quarterly revenues is pegged at $798.6 million, suggesting 22.8% growth from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Cinemark Holdings’ third-quarter earnings is pegged at 33 cents, suggesting 265% growth from that reported in the year-ago quarter. The consensus mark has moved up by a penny in the past 30 days.
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