Guess? (GES) to Report Q2 Earnings: What's in the Offing?
Guess?, Inc. GES is likely to register a top-line decline when it reports second-quarter fiscal 2024 earnings on Aug 23. The Zacks Consensus Estimate for revenues is pegged at $638.7 million, suggesting a drop of 0.6% from the prior-year quarter’s reported figure.
The company’s bottom line is likely to be in line with the year-ago quarter’s reported figure. The Zacks Consensus Estimate for quarterly earnings has remained unchanged in the past 30 days at 39 cents per share.
The casual apparel and accessories provider has a trailing four-quarter earnings surprise of almost 21%, on average. In the last reported quarter, the company delivered an earnings surprise of 75%.
Guess?, Inc. Price and EPS Surprise
Guess?, Inc. price-eps-surprise | Guess?, Inc. Quote
Things To Note
Guess? has been bearing the brunt of reduced customer traffic and conversion owing to a soft consumer spending environment. On its last earnings call, management stated that, though inflationary pressure has been easing, it expects increased interest rates to affect consumer spending.
Supply chain disruptions remain a significant challenge for Guess? Such challenges are likely to continue causing product shortages and cost escalations in the near term. Foreign currency headwinds are also a lingering headwind for the company. For the second quarter of fiscal 2024, management expects revenues in the range of break-even level to decrease 1.5%.
That said, focus on six strategic initiatives bode well for Guess?. The core strategies include organization and culture, functional capacities, brand relevance with three main consumer groups (heritage, Millennials and Generation Z customers), customer focus, product brilliance and an international footprint.
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict 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? carries a Zacks Rank #3 and has an Earnings ESP of 0.00%.
More Stocks With Favorable Combination
Here are three more companies worth considering, as our model shows that these have the correct elements to beat on earnings this time around.
Hormel Foods HRL currently has an Earnings ESP of +3.45% and a Zacks Rank #3. The company’s top and bottom lines are expected to increase year over year when it reports third-quarter fiscal 2023 results. The Zacks Consensus Estimate for Hormel Foods’ quarterly revenues is pegged at $3.1 billion, suggesting a rise of 2.8% from the figure reported in the prior year. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for the quarterly EPS is pegged at 41 cents, which indicates a 2.5% jump from the year-ago period figure. HRL has a trailing four-quarter negative earnings surprise of 2.3% on average.
Coty COTY currently has an Earnings ESP of +20.00% and a Zacks Rank #3. The company’s top and bottom lines are expected to increase year over year when it reports fourth-quarter fiscal 2023 results. The Zacks Consensus Estimate for Coty’s quarterly revenues is pegged at $1.3 billion, which implies a rise of 13.4% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for the quarterly EPS is pegged at 2 cents, which indicates 300% growth from the year-ago period figure. COTY has a trailing four-quarter earnings surprise of 145% on average.
Costco COST currently has an Earnings ESP of +1.08% and a Zacks Rank of 3. COST is likely to witness a bottom-line growth from the year-ago fiscal quarter’s reported figure when it reports second-quarter fiscal 2023 results. The Zacks Consensus Estimate for quarterly earnings is pegged at $4.72 per share over the past 30 days, suggesting a 12.4% rise from the year-ago fiscal quarter’s reported number.
Costco’s top line is expected to rise from the prior-year fiscal quarter’s reported number. The consensus estimate for quarterly revenues is pegged at $78.9 billion, suggesting a 9.4% rise from the figure reported in the prior-year fiscal quarter. COST delivered an earnings beat of 1.8%, on average, in the trailing four quarters.
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Costco Wholesale Corporation (COST) : Free Stock Analysis Report
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Guess?, Inc. (GES) : Free Stock Analysis Report
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