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Guess? (GES) Queued for Q4 Earnings: What's in the Offing?

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·5 min read
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Guess?, Inc. GES is likely to witness a year-over-year increase in the top line when it reports fourth-quarter fiscal 2022 earnings on Mar 16. The Zacks Consensus Estimate for revenues is pegged at $809 million, suggesting a rise of 24.8% from the prior-year quarter’s reported figure.

The Zacks Consensus Estimate for earnings has remained stable over the past 30 days at $1.16 per share, indicating a decline of 1.7% from the figure reported in the prior-year period. Guess?, which designs, markets, distributes and licenses lifestyle collections of apparel and accessories, has a trailing four-quarter earnings surprise of 97%, on average. GES delivered an earnings surprise of 34.8% in the last reported quarter.

The Zacks Consensus Estimate for fiscal 2022 revenues stands at $2.6 billion, suggesting a 38.6% jump from the figure reported in the prior-year period. The consensus mark for the bottom line is pegged at $2.97 for fiscal 2022, indicating a stark improvement from a loss of 7 cents reported in the same period last year.

Guess, Inc. Price, Consensus and EPS Surprise

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

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

Key Factors to Consider

Guess? has been benefiting from its focus on six key strategies. These include 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. Further, the company’s solid digital business has been a driver. Guess? has been committed to customer-centric initiatives, which include omnichannel capabilities as well as advanced data analytics and customer segmentation. On its last earnings call, management stated that it expects to see a continued improvement in its global e-commerce business through the fourth quarter of fiscal 2022.

That said, GES has been bearing the brunt of pandemic-related disruptions, such as challenges related to lower store traffic and capacity restrictions. For the fourth quarter of fiscal 2022, Guess? expects revenues to have declined in mid-single digits from the fourth quarter of fiscal 2020. The guidance indicates an impact from permanent store closures and an unfavorable shift of European wholesale shipments from the fourth quarter of fiscal 2022 to the first quarter of 2023. These are likely to have been partially offset by the momentum in the company’s global e-commerce business. Management’s fiscal 2022 top-line view suggests a decline in the low single digits from fiscal 2020’s level, considering no more pandemic-related closures.

What the Zacks Model Unveils

Our proven model doesn’t conclusively predict an earnings beat for Guess? this time. 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.

Guess? currently has a Zacks Rank #3 and an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell, before they’re reported, with our Earnings ESP Filter.

Stocks With the Favorable Combination

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 in the to-be-reported quarter.

Designer Brands Inc. DBI has an Earnings ESP of +12.28% and a Zacks Rank #2. It is anticipated to register a top and bottom-line increase when it reports fourth-quarter fiscal 2021 results. The Zacks Consensus Estimate for Designer Brands’ revenues is pegged at $842.9 million, indicating a rise of 38.3% 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 Designer Brands’ quarterly earnings is pegged at 14 cents per share, suggesting an improvement of 126.4% from the year-ago quarter’s reported figure. DBI delivered an earnings beat of nearly 116%, on average, in the trailing four quarters.

Fastenal Company FAST has an Earnings ESP of +0.46% and a Zacks Rank #2. The company is expected to register top and bottom-line growth when it reports first-quarter 2022 results. The Zacks Consensus Estimate for quarterly earnings per share (EPS) of 44 cents suggests growth of 18.9% from the year-ago quarter’s reported figure.

The consensus mark for Fastenal’s revenues is pegged at $1.67 billion, indicating an increase of 17.9% from the year-ago quarter. FAST has a trailing four-quarter earnings surprise of 3.3%, on average.

Dave & Buster's PLAY has an Earnings ESP of +5.93% and a Zacks Rank #3. The company is expected to register top and bottom-line growth when it reports fourth-quarter fiscal 2021 results. The Zacks Consensus Estimate for Dave & Buster's quarterly EPS of 59 cents suggests significant growth from the year-ago quarter’s reported figure of a loss of $1.19.

The consensus mark for revenues is pegged at $367.1 million, indicating a massive increase of 214.2% from the year-ago quarter. PLAY has a trailing four-quarter earnings surprise of 218.3%, on average.

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


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Fastenal Company (FAST) : Free Stock Analysis Report

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