Wolverine (WWW) Lined Up for Q3 Earnings: What's in the Cards?
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 third-quarter 2022 results on Nov 9, before market open. The consensus estimate of $716 million for quarterly revenues suggests growth of 12.4% from the prior-year quarter’s tally.
The Zacks Consensus Estimate for the quarterly earnings has been stable in the past 30 days at 57 cents, indicating a decline of about 8% from 62 cents earned in the year-earlier quarter. In the trailing four quarters, this Rockford, MI-based player delivered an earnings surprise of 2.5%, on average.
Key Factors to Note
Wolverine’s commitment to product innovation and investment in digitization to directly reach customers is likely to have favorably impacted its third-quarter 2022 performance. Management is also strengthening its direct-to-consumer (DTC) capabilities. Speed-to-market initiatives, deployment of the digital product development tool and expansion of e-commerce platforms are steadily contributing to its performance. All the aforesaid factors coupled with the expansion in international business and brand strength are most likely to have aided WWW’s top-line performance during the quarter under review.
The Zacks Consensus Estimate for third-quarter revenues is pegged at $387 million for the Michigan Group unit and $269 million for the Boston Group segment. These indicate growth of 19.1% and 3.9%, respectively, from the corresponding year-ago period’s reported figures. On its last earnings call, management had anticipated the Merrell brand to deliver revenue growth of above 30% and Saucony to generate a low single-digit revenue increase for the third quarter. Wolverine had forecast Sperry’s revenues to increase mid-single digits for the quarter under review.
On the flip side, higher adjusted selling, general and administrative expenses are likely to have persisted in the to-be-reported quarter. Also, the macro challenges, including supply-chain constraints and foreign currency headwinds might have been deterrents. These factors might have hurt the bottom line in the quarter under review.
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, as elaborated below. 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 #3 and an Earnings ESP of 0.00%.
3 Stocks With Favorable Combination
Here are three companies worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle:
BJ's Wholesale BJ has an Earnings ESP of +0.63% and a Zacks Rank #1. currently. BJ is likely to register top-line growth from the year-ago fiscal quarter’s reading when it reports third-quarter fiscal 2022. The Zacks Consensus Estimate for quarterly revenues is pegged at $4.62 billion, suggesting 8.3% growth from the figure reported in the prior-year fiscal quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for BJ's Wholesale’s earnings for the fiscal third quarter is pegged at 80 cents, suggesting a 12.1% decline from 91 cents reported in the year-ago fiscal quarter. The consensus mark has been stable in the past 30 days. BJ delivered an earnings beat of 16.5%, on average, in the trailing four quarters.
lululemon athletica LULU currently has an Earnings ESP of +1.50% and a Zacks Rank #2. LULU is likely to register an increase in the bottom line from the year-ago fiscal quarter’s reported figure when it reports third-quarter fiscal 2022 results. The Zacks Consensus Estimate for quarterly earnings has been stable at $1.95 per share over the past 30 days, suggesting 20.4% growth from the year-ago fiscal quarter’s reported number.
lululemon athletica’s top line is expected to rise from the prior-year fiscal quarter’s reported number. The Zacks Consensus Estimate for quarterly revenues is pegged at $1.80 billion, suggesting a 24.4% rise from the figure reported in the prior-year fiscal quarter. LULU delivered an earnings beat of 10.4%, on average, in the trailing four quarters.
Dollar General DG has an Earnings ESP of +2.35% and a Zacks Rank #3, currently. DG is likely to register top-line growth from the prior-year fiscal quarter’s reported figure when it reports third-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for quarterly revenues is pegged at $9.43 billion, suggesting 10.7% growth from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Dollar General’s earnings for the fiscal third quarter is pegged at $2.54 per share, suggesting 22.1% growth from the year-ago fiscal quarter’s tally. The consensus mark has been stable in the past 30 days. DG delivered an earnings beat of 2.2%, on average, in the trailing four quarters.
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BJ's Wholesale Club Holdings, Inc. (BJ) : Free Stock Analysis Report
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Wolverine World Wide, Inc. (WWW) : Free Stock Analysis Report
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