Genesco (GCO) to Report Q3 Earnings: What's in the Cards?
Genesco Inc. GCO is likely to register a decline in both top and bottom lines from the respective prior-year quarter’s reported numbers in its third-quarter fiscal 2024 results on Dec 1, before the opening bell.
The Zacks Consensus Estimate for revenues is pegged at $583 million, indicating a 3.5% decrease from the year-ago fiscal quarter’s reported figure. Further, the consensus estimate for quarterly earnings has been stable in the past 30 days at 83 cents per share. The figure shows a decline of 49.7% from earnings of $1.65 per share reported in the year-earlier quarter.
GCO delivered an earnings surprise of 30.9% in the last reported quarter. This specialty retailer of footwear and accessories has a trailing four-quarter negative earnings surprise of 1.8%, on average.
Key Aspects to Note
Genesco’s quarterly performance is likely to have been affected by a challenging operating environment including higher promotional activity and inflationary pressures. Also, any deleverage in SG&A expenses and stiff competition are likely to have been headwinds. The company has been witnessing higher SG&A expenses for a while now. Further, foreign currency translations have been acting as deterrents. On its last earnings call, management cited that it remains cautious given the lack of visibility into consumer demand patterns. The Zacks Consensus Estimate for comparable-store sales shows that the metric is likely to drop 1% during the quarter under review.
On a positive note, management has been taking actions to enhance customer experience and reduce costs to drive overall growth. In addition, resiliency in the company’s footwear-focused strategy and gains from the multi-channel operating model ahave been tailwinds. These factors are likely to have provided some cushion to the company’s performance in the quarter under review.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Genesco 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 which is not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Genesco Inc. Price and EPS Surprise
Genesco Inc. price-eps-surprise | Genesco Inc. Quote
Genesco has an Earnings ESP of 0.00% and a Zacks Rank of 3, at present.
Stocks With The Favorable Combination
Here are a few companies, which according to our model, have the right combination of elements to come up with an earnings beat this reporting cycle:
Caseys General Stores CASY currently has an Earnings ESP of +0.04% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company is expected to register a bottom-line decrease when it reports second-quarter fiscal 2024 results. The Zacks Consensus Estimate for quarterly earnings per share of $3.52 suggests a decline of 4.1% from the year-ago quarter.
The consensus mark for revenues is pegged at $4.1 billion, indicating a rise of 3.8% from the figure reported in the year-ago quarter. CASY has a trailing four-quarter earnings surprise of 17.5%, on average.
Five Below FIVE currently has an Earnings ESP of +5.22% and a Zacks Rank of 3. FIVE is likely to register top-line improvement when it reports third-quarter fiscal 2023 numbers.
The Zacks Consensus Estimate for Five Below’s quarterly revenues is pegged at $726.9 million, calling for growth of 12.7% from the prior-year quarter’s reported figure. The consensus mark for the quarterly earnings per share of 23 cents suggests a 20.7% decrease from the figure reported in the year-ago quarter. FIVE has a trailing four-quarter earnings surprise of 29.2%, on average.
Costco COST currently has an Earnings ESP of +5.23% and a Zacks Rank of 3. COST is likely to register a bottom-line increase when it reports first-quarter fiscal 2024 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $3.44 suggests an increase of 11% from the year-ago fiscal quarter’s reported number.
Costco’s top line is expected to improve from the prior-year fiscal quarter’s reported number. The consensus estimate for quarterly revenues is pegged at $57.7 billion, suggesting growth of 6% from the prior-year fiscal quarter’s reported figure. COST has a trailing four-quarter earnings surprise of 2.1%, on average.
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Costco Wholesale Corporation (COST) : Free Stock Analysis Report
Genesco Inc. (GCO) : Free Stock Analysis Report
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Five Below, Inc. (FIVE) : Free Stock Analysis Report
