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Here's How Hibbett (HIBB) is Placed Just Ahead of Q1 Earnings

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·5 min read
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Hibbett, Inc. HIBB is likely to witness a year-over-year decline in the top and bottom lines when it reports first-quarter fiscal 2023 earnings on May 27. The Zacks Consensus Estimate for revenues is pegged at $423.2 million, suggesting a decline of 16.5% from the prior-year quarter’s reported figure.

The Zacks Consensus Estimate for earnings has been unchanged in the past 30 days at $3.45 per share, indicating a decline of 31% from the figure reported in the prior-year period.

Hibbett, which engages in the retail of athletic-inspired fashion products, has a trailing four-quarter earnings surprise of 62.3%, on average. HIBB’s earnings were in line with the Zacks Consensus Estimate in the last reported quarter.

Hibbett, Inc. Price and EPS Surprise

 

Hibbett, Inc. Price and EPS Surprise
Hibbett, Inc. Price and EPS Surprise

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

Key Factors to Consider

Hibbett’s first-quarter fiscal 2023 results are expected to reflect the adverse impacts of the ongoing supply-chain disruption, the lack of stimulus and unemployment benefits, inflation, and higher wages.

On the last reported quarter’s earnings call, management anticipated comps to decline in the low-teens in the first half of fiscal 2023. The company expected supply-chain disruptions to continue in the fiscal first quarter, leading to higher freight expenses. It also predicted elevated shipping costs and deleverage from store occupancy costs.

Delay in launches, higher promotions, elevated freight costs and rising store occupancy costs, stemming from drab comps, have been hurting the company’s gross margin. Continued impacts from these factors are likely to have marred the gross margin in the fiscal first quarter. Wage inflation, higher fixed costs and back-office infrastructure investments are expected to have weighed on the operating margin in the to-be-reported quarter.

However, Hibbett has been benefiting from increased investments in customer acquisition and retention, store growth, improved store productivity, better omni-channel capabilities, and enhanced back-office infrastructure. Also, strong vendor relationships have been contributing to growth in the Hibbett and City Gear brands. The company is also likely to have gained from the progress on the e-commerce front and the expansion of the loyalty program.

The company remains focused on increasing the customer base by connecting with more customers through e-commerce and selective store expansion. Further, it has been leveraging its omni-channel capabilities to fulfill online orders and serve customers. Growth in e-commerce sales is likely to have contributed to sales gains in the to-be-reported quarter.

What the Zacks Model Unveils

Our proven model doesn’t conclusively predict an earnings beat for Hibbett 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. You can uncover the best stocks to buy or sell, before they’re reported, with our Earnings ESP Filter.

Hibbett currently has a Zacks Rank #4 (Sell) and an Earnings ESP of 0.00%.

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 this season:

The Kroger Co. KR currently has an Earnings ESP of +2.95% and a Zacks Rank of 2. The company is expected to have registered top and bottom-line growth in first-quarter fiscal 2022. The Zacks Consensus Estimate for KR’s quarterly revenues is pegged at $43.2 billion, which suggests a rise of 4.7% 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 Kroger’s quarterly earnings moved up 6.7% in the last 30 days to $1.27 per share, suggesting 6.7% growth from the year-ago quarter's reported number. KR has delivered an earnings beat of 22.1%, on average, in the trailing four quarters.

Designer Brands DBI has an Earnings ESP of +4.35% and a Zacks Rank #2 at present. The company is expected to have registered top and bottom-line growth in first-quarter fiscal 2022. The Zacks Consensus Estimate for DBI’s quarterly revenues is pegged at $806.7 million, which suggests a rise of 14.7% from the figure reported in the prior-year quarter.

The Zacks Consensus Estimate for Designer Brands’ quarterly earnings moved up by a penny in the last 30 days to 23 cents per share, suggesting 91.7% growth from the year-ago quarter's reported number. DBI has delivered an earnings beat of 112.8%, on average, in the trailing four quarters.

Casey's General Stores CASY currently has an Earnings ESP of +7.07% and a Zacks Rank #3. The company is anticipated to have registered top and bottom-line growth in fourth-quarter fiscal 2022. The Zacks Consensus Estimate for CASY’s quarterly earnings moved up by a penny in the last seven days to $1.49 per share, suggesting 33% growth from the year-ago quarter's reported number.

The Zacks Consensus Estimate for Casey's quarterly revenues is pegged at $3.4 billion, suggesting growth of 44.7% from the figure reported in the prior-year quarter. CASY has delivered an earnings beat of 21.6%, on average, in the trailing four quarters.

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


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