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Wolverine (WWW) Queued Up for Q1 Earnings: What's in Store?

·5 min read

Wolverine World Wide, Inc. WWW is expected to report an increase in its top line from the year-ago quarter’s reported figure when it releases first-quarter 2022 results on May 11, before market open. The consensus estimate of $605.1 million for quarterly revenues suggests growth of 18.5% from the prior-year quarter’s tally.

The Zacks Consensus Estimate for the quarterly earnings has been stable in the past 30 days at 39 cents, indicating a decline of 2.5% from 40 cents earned in the year-earlier quarter. In the trailing four quarters, this Rockford, MI-based player delivered an earnings surprise of 18.3%, on average.

Key Factors to Note

Wolverine’s commitment toward product innovation and investments in own stores and digitization to directly reach customers are likely to have favorably impacted its first-quarter 2022 performance. Also, demand for its brands and robust direct-to-consumer (DTC) sales might have contributed to results. WWW has also been leveraging higher digital marketing investments for a while to boost traffic and is deepening its focus on better merchandising to optimize conversion.

Wolverine has also been strengthening its DTC business so far. Speed-to-market initiatives, deployment of digital product development tool, expansion of e-commerce platforms and a frequent introduction of products are steadily contributing to its performance. All the aforesaid factors coupled with the expansion in international business are most likely to have favored WWW’s top-line performance during the quarter under review.

On its last earnings call, management had projected revenues between $595 million and $610 million for the first quarter, suggesting growth of 16.5-19.5% from the year-ago quarter’s reported figure. Its forecasts of first-quarter adjusted earnings came in the band of 37-40 cents a share and the adjusted operating margin at 8%.

On the flip side, higher adjusted selling, general and administrative expenses are likely to have persisted in the fourth quarter. Also, steep air-freight and logistics costs due to COVID-related supply-chain constraints might have remained a headwind.

What Our Zacks Model Says

Our proven model doesn’t conclusively predict an earnings beat for Wolverine 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.

Wolverine currently has a Zacks Rank #4 (Sell) and an Earnings ESP of 0.00%.

Stocks Poised to Beat Earnings Estimates

Here are some companies worth considering as our model shows that these have the right combination of elements to beat on earnings this season:

Marriott International MAR has an Earnings ESP of +5.35% and a Zacks Rank #2. MAR is likely to register a year-over-year increase in the bottom line when it reports first-quarter 2022 results. The Zacks Consensus Estimate for quarterly earnings has declined a penny to 94 cents per share in the past 30 days, indicating a significant improvement from 10 cents registered in the year-ago quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.

Marriott International’s top line is expected to rise from the year-ago quarter’s reported figure. The Zacks Consensus Estimate for quarterly revenues is pegged at $4.17 billion, which suggests a surge of 80% from the figure reported in the prior-year quarter. MAR delivered an earnings beat of 86.6%, on average, in the trailing four quarters.

lululemon athletica LULU currently has an Earnings ESP of +1.77% and a Zacks Rank #3. LULU is likely to register an increase in the bottom line when it reports first-quarter fiscal 2022. The Zacks Consensus Estimate for quarterly earnings has moved 8.5% north to $1.40 per share, suggesting 20.7% growth from the year-ago quarter’s reported number.

lululemon athletica’s top line is expected to rise from the prior-year period’s tally. The Zacks Consensus Estimate for quarterly revenues is pegged at $1.54 billion, which suggests a rise of 25.7% from the figure reported in the prior-year quarter. LULU delivered an earnings beat of 20.9%, on average, in the trailing four quarters.

BJ's Wholesale Club BJ currently has an Earnings ESP of +1.21% and a Zacks Rank of 3. BJ is likely to register an increase in the top line when it reports first-quarter fiscal 2022. The Zacks Consensus Estimate for quarterly revenues is pegged at $4.16 billion, suggesting a rise of 7.6% from the year-ago quarter’s reported number.

The Zacks Consensus Estimate for BJ's Wholesale Club’s quarterly earnings stands at 72 cents, flat with the year-earlier quarter’s level. The consensus mark has increased a penny in the past 30 days. BJ delivered an earnings beat of 17.9%, on average, in the trailing four quarters.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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Marriott International, Inc. (MAR) : Free Stock Analysis Report
 
BJ's Wholesale Club Holdings, Inc. (BJ) : Free Stock Analysis Report
 
lululemon athletica inc. (LULU) : Free Stock Analysis Report
 
Wolverine World Wide, Inc. (WWW) : Free Stock Analysis Report
 
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