Sally Beauty (SBH) Queued for Q3 Earnings: Things to Consider
Sally Beauty Holdings, Inc. SBH is likely to register a decline in the top and the bottom line when it reports third-quarter fiscal 2023 earnings on Aug 3. The Zacks Consensus Estimate for net sales is pegged at $947.7 million, suggesting a drop of 1.4% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for quarterly earnings has been unchanged in the past 30 days at 49 cents per share, indicating a decline of 10.9% from the figure reported in the prior-year quarter. The international specialty retailer and distributor of professional beauty supplies reported an earnings surprise of 10.8% in the last quarter. Sally Beauty has a trailing four-quarter earnings surprise of 3.6%, on average.
Sally Beauty Holdings, Inc. Price and EPS Surprise
Sally Beauty Holdings, Inc. price-eps-surprise | Sally Beauty Holdings, Inc. Quote
Things to Consider
Sally Beauty has been battling a shrinking margin for the past few quarters. The company has been bearing the brunt of channel mix shifts between stores and the expanded Regis business. SBH’s international presence exposes it to the risk of adverse foreign currency fluctuations.
In addition, Sally Beauty has been witnessing escalated selling, general and administrative (SG&A) expenses for a while now. The rise in such costs can be attributed to higher labor, accrued bonus and advertising costs. The persistent rise in such costs is a threat to the company’s third-quarter fiscal 2023 performance.
That said, the company is on track to focus on its three key strategic initiatives, which include enhancing customer centricity, growing high-margin-owned brands and carrying out innovations while increasing the efficiency of operations and optimizing its capabilities. These factors are likely to have been an upside.
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for Sally Beauty 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.
Sally Beauty carries a Zacks Rank #3 and has an Earnings ESP of 0.00%.
Stocks With the Favorable Combination
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to deliver an earnings beat.
Arhaus ARHS currently has an Earnings ESP of +7.69% and a Zacks Rank #1. The company is expected to register a bottom-line decline when it reports second-quarter 2023 results. The Zacks Consensus Estimate for quarterly earnings per share of 26 cents suggests a decrease of 7.1% from the year-ago quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
Arhaus’ top line is anticipated to rise year over year. The consensus mark for revenues is pegged at $325.7 million, indicating an increase of 6.3% from the figure reported in the year-ago quarter. ARHS has a trailing four-quarter earnings surprise of 82.4%, on average.
Ross Stores ROST currently has an Earnings ESP of +11.50% and carries a Zacks Rank #2. The company is likely to register a bottom-line increase when it reports second-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $1.14 suggests a rise of 2.7% from the year-ago quarter.
Ross Stores’ top line is expected to increase year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $4.72 billion, which indicates a rise of 3% from the figure reported in the prior-year quarter. ROST has a trailing four-quarter earnings surprise of 11.5%, on average.
Costco COST has an Earnings ESP of +0.73% and a Zacks Rank of 3. The company will likely 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 $4.73 suggests a rise of 12.6% from the year-ago reported number.
Costco’s top line is expected to ascend year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $78.92 billion, which calls for an increase of 9.5% from the prior-year quarter. COST has a trailing four-quarter earnings surprise of 1.8%, on average.
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Ross Stores, Inc. (ROST) : Free Stock Analysis Report
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Arhaus, Inc. (ARHS) : Free Stock Analysis Report
