Things To Consider Before Guess? (GES) Reports Q3 Earnings
Guess?, Inc. GES is likely to register top- and bottom-line growth when it reports third-quarter fiscal 2024 earnings on Nov 21. The Zacks Consensus Estimate for revenues is pegged at $656.2 million, suggesting growth of 3.6% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for the bottom line has remained unchanged at 62 cents per share in the past 30 days. The projection indicates an increase of 40.9% from the year-ago quarter’s reported figure.
The casual apparel and accessories provider has a trailing four-quarter earnings surprise of 43.4%, on average. In the last reported quarter, the company delivered an earnings surprise of 84.6%.
Things To Consider
Guess? has been benefiting from a focus on six key strategies, including functional capacities, brand relevance, customer focus, product brilliance and international footprint. The company is on track to progress in its customer-centric initiatives, including omnichannel capabilities and advanced data analytics and customer segmentation.
Guess?’s focus on elevating brands, together with its strong global distribution and diversified business model, are likely to have fueled its performance in the to-be-reported quarter. Management expects fiscal third-quarter revenue growth of 2.5-4.5%. On an adjusted basis, Guess? anticipates earnings per share (EPS) in the band of 55-64 cents per share, reflecting a year-over-year improvement.
Management expects the adjusted operating margin and the GAAP operating margin to be in the range of 7.5-8.3%. We anticipate the metric to come in at 8% in the fiscal third quarter.
However, rising operating costs and expenses are concerns for Guess?. Management anticipates witnessing tighter labor markets and rising wages in the near term, which might affect its margins and profitability.
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for Guess? 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.
Guess? carries a Zacks Rank #3 and has an Earnings ESP of 0.00%.
Stocks With a 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.
American Eagle Outfitters AEO has an Earnings ESP of +4.51% and a Zacks Rank #1. The company is likely to register growth in the top and the bottom line when it reports third-quarter fiscal 2023 numbers. The consensus mark for AEO’s quarterly earnings has moved up by a penny to 48 cents per share in the past seven days. The consensus estimate suggests growth of 14.3% from the year-ago quarter’s reported figure. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for American Eagle’s quarterly revenues is pegged at $1.28 billion, suggesting a rise of 2.8% from the figure reported in the prior-year quarter.
Costco COST has an Earnings ESP of +4.26% and a Zacks Rank of 2. COST is likely to register a bottom-line increase when it reports first-quarter fiscal 2024 numbers. The Zacks Consensus Estimate for quarterly EPS of $3.43 suggests an increase of 10.7% from the year-ago fiscal quarter’s reported number.
Costco’s top line is expected to improve from the prior-year fiscal quarter’s reported number. The consensus estimate for quarterly revenues is pegged at $57.7 billion, suggesting growth of almost 6% from the prior-year fiscal quarter’s reported figure. COST has a trailing four-quarter earnings surprise of 2.1% on average.
Burlington Stores BURL has an Earnings ESP of +0.64% and a Zacks Rank of 3. The company is likely to register top- and bottom-line growth when it reports third-quarter fiscal 2023 results. The consensus mark for BURL’s quarterly revenues is pegged at $2.3 billion, suggesting a rise of 13.4% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for BURL’s earnings has moved down by a couple of cents to 99 cents per share in the past seven days. The consensus estimate indicates a significant increase of 130.2% from that reported in the year-ago quarter. BURL has a trailing four-quarter earnings surprise of 5.3% on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
American Eagle Outfitters, Inc. (AEO) : Free Stock Analysis Report
Costco Wholesale Corporation (COST) : Free Stock Analysis Report
Guess?, Inc. (GES) : Free Stock Analysis Report
Burlington Stores, Inc. (BURL) : Free Stock Analysis Report
