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Guess? (GES) Q2 Earnings Coming Up: Things to Keep in Mind

Guess?, Inc. GES is likely to register growth in the top line when it reports second-quarter fiscal 2023 earnings on Aug 24. The Zacks Consensus Estimate for revenues is pegged at $635.5 million, suggesting a rise of 1.1% from the prior-year quarter’s reported figure.

However, Guess?’s bottom line is likely to decline year over year. The Zacks Consensus Estimate for quarterly earnings has moved down by 8.9% in the past seven days to 41 cents per share. The projection indicates a decline of 57.3% from the year-ago quarter’s reported figure. Guess?, which designs, markets, distributes and licenses lifestyle collections of apparel and accessories, has a trailing four-quarter earnings surprise of 14.5%, on average. GES reported a negative earnings surprise of 17.2% in the last reported quarter.

Guess, Inc. Price and EPS Surprise

 

Guess, Inc. Price and EPS Surprise
Guess, Inc. Price and EPS Surprise

Guess, Inc. price-eps-surprise | Guess, Inc. Quote

 

Things To Note

In its last earnings call, the company highlighted that it expects revenue growth of nearly 1% (up 8% at constant currency) year over year in the second quarter of fiscal 2023. The company is benefiting from solid digital business. It is on track to progress in its customer-centric initiatives, including omnichannel capabilities, advanced data analytics and customer segmentation. Focus on its six key strategies, including organization and culture, functional capacities, brand relevance with three main consumer groups (heritage, Millennials and Generation Z customers), customer focus, product brilliance and international footprint, bodes well.

Yet, Guess? is battling supply chain disruptions which is impacting its supply cost and inventory availability. The company continues to operate amid a dynamic environment, which includes increased inbound freight and product costs, weak euro and higher wages. The recent COVID-induced lockdowns across China and the energy crisis stemming from the war in Ukraine are a concern. Management expects an operating margin of roughly 7.5% in the to-be-reported quarter.

What the Zacks Model Unveils

Our proven model predicts an earnings beat for Guess? 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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Guess? has an Earnings ESP of +8.87% and carries a Zacks Rank #3 (Hold).

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:

Dollar General DG currently has an Earnings ESP of +1.04% and a Zacks Rank of 2. The company is likely to register an increase in the bottom line when it reports second-quarter fiscal 2022 results. The Zacks Consensus Estimate for quarterly earnings has risen by a penny over the past 30 days to $2.93 per share. The consensus mark for DG’s earnings per share suggests 8.9% growth from the year-ago quarter’s reported number. You can see the complete list of today’s Zacks #1 Rank stocks here.

Dollar General’s top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $9.39 billion, which suggests a rise of 8.6% from the figure reported in the prior-year quarter. DG delivered an earnings beat of 2.8%, on average, in the trailing four quarters.

Dollar Tree DLTR currently has an Earnings ESP of +1.75% and a Zacks Rank of 2. The company is likely to register a rise in the top and bottom lines when it reports second-quarter fiscal 2022 results. The Zacks Consensus Estimate for DLTR’s quarterly revenues is pegged at $6.8 billion, which suggests a jump of almost 7% from the figure reported in the prior-year quarter.

The consensus mark for Dollar Tree’s quarterly earnings has remained unchanged at $1.57 per share in the past 30 days. The consensus estimate for DLTR’s quarterly earnings suggests a rise of 27.6% from the year-ago quarter’s reported figure. Dollar Tree delivered an earnings surprise of 13.1%, on average, in the trailing four quarters.

Ulta Beauty ULTA currently has an Earnings ESP of +4.07% and a Zacks Rank #2. The company is likely to register a bottom-line improvement when it reports second-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $4.90 suggests an improvement from the $4.56 reported in the year-ago quarter.

Ulta Beauty's top line is also expected to have risen year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $2.2 billion, which indicates an improvement of 11.7% from the figure reported in the prior-year quarter. ULTA has a trailing four-quarter earnings surprise of 49.8%, on average.


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