Yahoo Finance Here's Why V.F. Corp (VFC) is Unlikely to Beat Earnings in Q3
V.F. Corporation VFC is likely to register top and bottom-line decreases from the year-ago quarter’s reported figures when it posts third-quarter fiscal 2023 earnings on Feb 7, after the closing bell. The Zacks Consensus Estimate for quarterly revenues is pegged at $3.48 billion, indicating a 4% dip from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for earnings in the fiscal third quarter is pegged at 99 cents per share, suggesting a 26.7% decline from the year-ago quarter’s reported number. Earnings estimates have moved down by a penny in the past 30 days.
We note that V.F. Corp delivered a negative earnings surprise of 5.1% in the trailing four quarters, on average. In the last reported quarter, the company posted an earnings miss of 1.4%.
V.F. Corporation Price and EPS Surprise
V.F. Corporation price-eps-surprise | V.F. Corporation Quote
Key Factors to Note
On Dec 6, V.F. Corp trimmed its outlook for fiscal 2023, implying soft performance in the to-be-reported quarter. The company expected its second half of fiscal 2023 to reflect the impacts of lower-than-expected consumer demand across its business categories, mostly in North America. The reduced demand is likely to have resulted in a heightened promotional environment and wholesale order cancellations to manage inventory levels. The impacts of these trends are expected to have pulled down the top line in the fiscal third quarter.
V.F. Corp also expected the reduced consumer discretionary spending in Europe due to inflationary pressures and ongoing pandemic-related disturbances in China to affect its performance in the second half of fiscal 2023. Consequently, V.F. Corp anticipates revenue growth in the second half of fiscal 2023 to be slightly below the previous view, suggesting a 3-4% increase in constant dollars (excluding foreign currency translations).
Additionally, the company expects SG&A deleverage throughout fiscal 2023 due to lower volumes. This, along with the promotional environment in North America, is likely to weigh on the bottom-line performance for the to-be-reported quarter.
On the positive front, V.F. Corp has been witnessing strength across its brands for a while. VFC’s brand portfolio, and strength in the outdoor, active, streetwear and workwear units have been tailwinds. In addition, VFC has been benefiting from Supreme’s strong follower base among the younger generation.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for V.F. Corp 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.
V.F. Corp has a Zacks Rank #4 (Sell) and an Earnings ESP of +5.79%.
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:
BJ's Wholesale BJ has an Earnings ESP of +18.48% and currently sports a Zacks Rank #1. BJ is likely to register top and bottom-line growth from the prior-year quarter’s reading when it reports fourth-quarter fiscal 2022 results. The Zacks Consensus Estimate for quarterly revenues is pegged at $4.9 billion, suggesting 12.5% growth from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for BJ's Wholesale’s fiscal fourth-quarter earnings is pegged at 88 cents, suggesting a 10% rise from 80 cents reported in the year-ago quarter. The consensus mark has moved up 2.3% in the past 30 days. BJ delivered an earnings beat of 18.2%, on average, in the trailing four quarters.
Deckers Outdoor DECK currently has an Earnings ESP of +2.62% and a Zacks Rank of 2. DECK is expected to register top and bottom-line growth from the year-ago quarter’s reported figures when it reports third-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for DECK’s quarterly revenues is pegged at $1.26 billion, suggesting growth of 5.9% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for Deckers’ quarterly earnings has moved up 0.7% in the past seven days to $9.48 per share. The consensus estimate for earnings suggests 12.6% growth from the year-ago quarter’s reported number. DECK delivered an earnings beat of 28.9%, on average, in the trailing four quarters.
Crocs Inc. CROX currently has an Earnings ESP of +1.79% and a Zacks Rank #3. CROX is anticipated to register top-line growth from the prior-year quarter’s reported figure when it reports fourth-quarter 2022 results. The Zacks Consensus Estimate for quarterly revenues is pegged at $938.5 million, indicating an improvement of 59.9% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Crocs’ earnings of $2.15 per share has moved up 7% in the past 30 days. The consensus estimate is flat with $2.15 reported in the year-ago quarter. CROX delivered an earnings beat of 18.2%, on average, in the trailing four quarters.
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V.F. Corporation (VFC) : Free Stock Analysis Report
Deckers Outdoor Corporation (DECK) : Free Stock Analysis Report
BJ's Wholesale Club Holdings, Inc. (BJ) : Free Stock Analysis Report
Crocs, Inc. (CROX) : Free Stock Analysis Report