Kontoor Brands (KTB) to Post Q3 Earnings: What's in the Cards?
Kontoor Brands, Inc. KTB is set to report third-quarter 2023 earnings on Nov 2 before market open. The bottom line of this global lifestyle apparel company is expected to increase year over year. The Zacks Consensus Estimate of earnings of $1.13 per share for the third quarter has been stable in the past 30 days. The figure shows a rise of 1.8% from the year-ago period’s reported figure.
The consensus estimate for quarterly revenues is $642.7 million, indicating growth of 6% from the prior-year reported figure.
This Greensboro, NC-based company has a trailing four-quarter earnings surprise of 11.6%, on average. In the last reported quarter, the company’s bottom line beat the Zacks Consensus Estimate by a margin of 16.7%.
Key Things to Note
Kontoor Brands remains focused on boosting growth at its direct-to-consumer channels and enhancing its footprint across the international markets. The company has been making strategic investments in talent, demand creation and innovation to aid growth. Its brands have also been performing well. The Zacks Consensus Estimate for the company’s Lee and Wrangler brands are currently pegged at $214 million and $427 million, respectively. These estimates show a corresponding increase of 8.1% and 5.2% year over year.
However, the impacts of a tough operating backdrop, including the inflationary pressures on input costs, have been concerning. In addition, currency headwinds remain deterrents. These weaknesses, coupled with any deleverage in selling, general and administrative expenses, are likely to have hurt Kontoor Brands’ earnings performance in the quarter under review.
What Does the Zacks Model Unveil?
Our proven model doesn’t conclusively predict an earnings beat for Kontoor Brands 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. But that’s not the case here. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Kontoor Brands, Inc. Price and EPS Surprise
Kontoor Brands, Inc. price-eps-surprise | Kontoor Brands, Inc. Quote
Kontoor Brands has an Earnings ESP of 0.00% and a Zacks Rank of 3.
Stocks With the Favorable Combination
Here are some companies, which according to our model, have the right combination of elements to beat on earnings this season:
Church & Dwight Co. CHD has an Earnings ESP of +2.21% and a Zacks Rank of 3. The company is slated to witness top-line growth when it reports third-quarter 2023 results. The Zacks Consensus Estimate for CHD’s quarterly revenues is pegged at $1.43 billion, which suggests growth of 8.7% from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
Although the Zacks Consensus Estimate for Church & Dwight’s quarterly earnings has moved up by a penny over the past 30 days to 68 cents per share, the figure suggests a decline of 10.5% from the year-ago quarter’s reported number. CHD delivered an earnings surprise of 12.1%, on average, in the trailing four quarters.
The Boston Beer Company SAM currently has an Earnings ESP of +0.17% and a Zacks Rank of 3. The company is likely to register bottom-line growth when it reports third-quarter 2023 numbers. The Zacks Consensus Estimate for The Boston Beer Company’s quarterly earnings per share of $4.25 suggests an increase of 11.3% from the year-ago quarter’s levels.
SAM has a trailing four-quarter negative earnings surprise of 74.9%, on average. The Zacks Consensus Estimate for The Boston Beer Company’s quarterly revenues is pegged at $592.9 million, indicating a drop of 0.6% from the figure reported in the prior-year quarter.
Build-A-Bear Workshop BBW currently has an Earnings ESP of +0.66% and carries a Zacks Rank of 3. The Zacks Consensus Estimate for third-quarter fiscal 2023 earnings per share is pegged at 51 cents, flat year over year.
Build-A-Bear Workshop’s top line is expected to increase year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $107.6 million, which indicates an increase of 3% from the figure reported in the prior-year quarter. BBW has a trailing four-quarter earnings surprise of 21.6%, on average.
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Church & Dwight Co., Inc. (CHD) : Free Stock Analysis Report
Build-A-Bear Workshop, Inc. (BBW) : Free Stock Analysis Report
The Boston Beer Company, Inc. (SAM) : Free Stock Analysis Report
Kontoor Brands, Inc. (KTB) : Free Stock Analysis Report
