Ollie's Bargain (OLLI) Lined Up for Q4 Earnings: Factors to Note
Ollie's Bargain Outlet Holdings, Inc. OLLI is likely to register an increase in the top line when it reports fourth-quarter fiscal 2023 numbers on Mar 20 before market open. The Zacks Consensus Estimate for revenues is pegged at $649.1 million, which indicates an increase of 18.1% from the prior-year quarter.
The extreme-value retailer of brand-name merchandise is expected to see a year-over-year increase in its bottom line. The Zacks Consensus Estimate for fourth-quarter earnings per share has remained steady at $1.16 for the past 30 days, which calls for a significant rise from the 84 cents reported in the same period last year.
The company has a trailing four-quarter earnings surprise of 7%, on average. In the last reported quarter, this Harrisburg, PA-based company’s bottom line outperformed the Zacks Consensus Estimate by 13.3%.
Key Factors to Consider
Ollie's Bargain’s business operating model of “buying cheap and selling cheap,” cost-containment efforts, focus on store productivity and the expansion of the customer loyalty program, Ollie's Army, are likely to have contributed to the top-line performance.
The company’s focus on value-driven merchandise assortments positioned it well to capitalize on opportunities in the marketplace and effectively meet consumer demand. Ollie's Army continued to be a major sales driver, with membership increasing continuously. We expect comparable store sales growth of 3% for the fourth quarter.
While the aforementioned factors raise optimism about the outcome, margins still remain an area to watch. Any deleverage in SG&A expenses due to higher selling expenses associated with new store unit growth, as well as investments in wages and higher utility costs, may have a direct bearing on margins. We expect SG&A expenses to increase 16% year over year for the quarter under discussion.
Ollie's Bargain Outlet Holdings, Inc. Price, Consensus and EPS Surprise
Ollie's Bargain Outlet Holdings, Inc. price-consensus-eps-surprise-chart | Ollie's Bargain Outlet Holdings, Inc. Quote
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Ollie's Bargain 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. However, that’s not the case here.
Ollie's Bargain has a Zacks Rank #3 but 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 three 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:
lululemon athletica LULU currently has an Earnings ESP of +0.45% and a Zacks Rank of 3. The company is likely to register an increase in the bottom line when it reports fourth-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $5.01 suggests a rise of 13.9% from the year-ago reported number. You can see the complete list of today’s Zacks #1 Rank stocks here.
lululemon’s top line is expected to ascend year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $3.19 billion, which calls for an increase of 15.1% from the prior-year quarter. LULU has a trailing four-quarter earnings surprise of 9.2%, on average.
General Mills GIS currently has an Earnings ESP of +1.30% and a Zacks Rank of 3. The company is likely to register a bottom-line increase when it reports third-quarter fiscal 2024 numbers. The Zacks Consensus Estimate for the quarterly earnings per share of $1.04 suggests a rise of 7.2% from the year-ago quarter.
General Mills’ top line is expected to decrease year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $4.95 billion, which indicates a decline of 3.4% from the figure reported in the prior-year quarter. GIS has a trailing four-quarter earnings surprise of 5.7%, on average.
Guess?, Inc. GES currently has an Earnings ESP of +4.25% and a Zacks Rank of 2. The company is likely to register a bottom-line decline when it reports fourth-quarter fiscal 2024 numbers. The Zacks Consensus Estimate for the quarterly earnings per share of $1.55 suggests a drop from $1.74 reported in the year-ago quarter.
The top line is expected to increase year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $855.5 million, which indicates a jump of 4.6% from the figure reported in the prior-year quarter. GES has a trailing four-quarter earnings surprise of 43.1%, on average.
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General Mills, Inc. (GIS) : Free Stock Analysis Report
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Ollie's Bargain Outlet Holdings, Inc. (OLLI) : Free Stock Analysis Report
