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Movado (MOV) to Post Q4 Earnings: Strong Brands a Key Upside

Zacks Equity Research

Movado Group, Inc. MOV is expected to release fourth-quarter fiscal 2019 results on Mar 28. The bottom line of this leading watch designer and distributor surpassed the Zacks Consensus Estimate in three of the trailing four quarters, the average being 78.2%. Let’s see what’s in store this time.

Factors Likely to Impact Q4 Performance

Movado gains from a rich portfolio of domestic and international watches as well as accessories brands. Popular banners such as Tommy Hilfiger, Coach, Hugo Boss and Lacoste are performing well. Also, the company is progressing well with product launches to boost sales across key brands. We expect that the company’s strong brand line-up will drive the upcoming quarterly results.

Moreover, the company is keen on fortifying its portfolio through prudent acquisitions and licensing agreements. In syn with this, it completed the buyout of MVMT Watches Inc. in October, 2018. The move is likely to boost profitability and long-term growth. Further, the buyout is expected to reinforce the company’s digital and direct-to-consumer capabilities. Markedly, management is on track with the integration of this business.

Further, we note that the company is gaining from strong e-commerce channel. In this regard, the Olivia Burton brand buyout is worth mentioning. This is boosting the company’s e-commerce sales and contributing to overall results.

Movado is also focusing on improving the marketing support provided to its brands. On this front, the company is striving toward bolstering digital campaigns for its brands across diverse social media platforms. It is keen on coming up with unique marketing messages for some of its new brands. All these initiatives are expected to drive the top- and the bottom-line performances in the forthcoming quarterly release.

Notably, the Zacks Consensus Estimate for fiscal fourth-quarter earnings is pegged at 54 cents per share, reflecting growth of nearly 3.8% year over year. The consensus mark remained stable in the past 30 days.

Movado Group Inc. Price, Consensus and EPS Surprise

 

Movado Group Inc. Price, Consensus and EPS Surprise | Movado Group Inc. Quote

 

A Glance at Zacks Model

Our proven model does not show that Movado Group is likely to beat earnings estimates in fourth-quarter fiscal 2019. This is because a stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Movado has a Zacks Rank #3 and an Earnings ESP of 0.00%, which makes surprise prediction difficult.

Stocks Likely to Beat Earnings Estimates

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:

Darden Restaurants, Inc DRI has an Earnings ESP of +1.07% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Signet Jewelers Limited SIG has an Earnings ESP of +1.27% and a Zacks Rank #3.

Five Below, Inc. FIVE has an Earnings ESP of +0.48% and a Zacks Rank #3.

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