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How Tuesday Morning (TUES) Looks Just Ahead of Q1 Earnings

Zacks Equity Research

Tuesday Morning Corporation TUES is scheduled to report first-quarter fiscal 2020 financial numbers on Nov 5, before the opening bell. We note that the bottom line of this off-price retailer has surpassed the Zacks Consensus Estimate in the trailing four quarters.

The Zacks Consensus Estimate for first-quarter is pegged at a loss of 17 cents. The company had reported a loss of 18 cents in the year-ago quarter. We note that the Zacks Consensus Estimate has remained unchanged in the past 30 days. The consensus estimate for revenues stands at $228.1 million, suggesting a marginal improvement of about 0.3% from the year-ago quarter.

Key Factors to Note

Supply chain improvement, reduction of traditional ad events and real estate strategy involving openings, relocations and closings of underperforming units are likely to have contributed to margins, and consequently the bottom line in the first quarter. Moreover, the company’s focus on merchant organization, digital marketing and key merchandise categories are likely to get reflected in the top line.

However, net sales are likely to reflect the impact of purposeful reduction in traditional ad events and fewer stores. Moreover, in the last earnings call, management guided tough comparison for first and second-quarter comparable store sales as the prior-year periods had gained from store relocations. Again, concerns related to higher general & administrative expenses and increased transportation costs cannot be ignored.

Tuesday Morning Corp. Price, Consensus and EPS Surprise


Tuesday Morning Corp. Price, Consensus and EPS Surprise

Tuesday Morning Corp. price-consensus-eps-surprise-chart | Tuesday Morning Corp. Quote

What the Zacks Model Unveils

Our proven model does not conclusively predict an earnings beat for Tuesday Morning 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 to buy or sell before they’re reported with our Earnings ESP Filter.

Tuesday Morning has a Zacks Rank #3 and an Earnings ESP of 0.00%.

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Costco COST has an Earnings ESP of +0.22% and a Zacks Rank #2.

Target TGT has an Earnings ESP of +5.62% and a Zacks Rank #3.

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