Yahoo Finance Tapestry (TPR) Lined Up for Q2 Earnings: Factors to Note
Tapestry, Inc. TPR is likely to register a decline in the top line when it reports second-quarter fiscal 2023 numbers on Feb 9 before market open. The Zacks Consensus Estimate for revenues is pegged at $2,034 million, suggesting a decline of 5% from the prior-year reported figure.
The Zacks Consensus Estimate for second-quarter revenues from the Coach, Kate Spade and Stuart Weitzman brands is pegged at $1,444 million, $479 million and $108 million, indicating a decrease of 5.3%, 4.3% and 6.7%, respectively.
The Zacks Consensus Estimate for second-quarter earnings per share has been stable at $1.26 over the past 30 days. The consensus mark indicates a decline of 5.3% from the year-ago period. Tapestry has a trailing four-quarter earnings surprise of 11.5%, on average.
Things to Note
A consumer-centric approach, omnichannel capabilities, brand awareness and an emphasis on high-growth areas are likely to have benefited Tapestry’s second-quarter performance. Its Acceleration Program has been a major contributing factor as well. However, a tough operating environment, foreign exchange headwinds, and slower recovery in Greater China due to further lockdowns might have played a spoilsport.
Tapestry, Inc. Price, Consensus and EPS Surprise
Tapestry, Inc. price-consensus-eps-surprise-chart | Tapestry, Inc. Quote
On its last earnings call, Tapestry guided a low-single-digit decline in revenues on a constant-currency basis, which includes an estimated decline of 10% in Greater China. On a reported basis, management projected a mid-single-digit decline in global sales, including the negative impact of approximately 450 basis points from foreign exchange pressure.
Also, we cannot ignore the impact of ongoing supply-chain issues and increasing freight costs. Meanwhile, any deleverage in SG&A expenses might get reflected in margins. Tapestry expects second-quarter earnings to be $1.25 per share, down from the $1.33 reported in the year-ago period and includes a currency headwind of approximately 15 cents.
What Our Zacks Model Says
Our proven model predicts an earnings beat for Tapestry this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is the case here. You can see the complete list of today’s Zacks #1 Rank stocks here.
Tapestry has a Zacks Rank #3 and an Earnings ESP of +2.82%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks With the Favorable Combination
Here are three other companies you may want to consider as our model shows that these too have the right combination of elements to post an earnings beat:
Expedia Group EXPE currently has an Earnings ESP of +7.34% and sports a Zacks Rank #1. The company is expected to register bottom-line growth when it reports fourth-quarter 2022 results. The Zacks Consensus Estimate for quarterly earnings per share of $1.85 suggests an increase of 74.5% from the year-ago quarter.
Expedia Group’s top line is anticipated to rise year over year. The consensus mark for revenues is pegged at $2.68 billion, indicating an increase of 17.7% from the figure reported in the year-ago quarter.
Casey's General Stores CASY currently has an Earnings ESP of +19.88% and a Zacks Rank #2. The company is expected to register a bottom-line decline when it reports third-quarter fiscal 2023 results. The Zacks Consensus Estimate for quarterly earnings per share of $1.66 suggests a decrease of 2.9% from the year-ago quarter.
Casey's top line is anticipated to rise year over year. The consensus mark for revenues is pegged at $3.57 billion, indicating an increase of 17.2% from the figure reported in the year-ago quarter. CASY has a trailing four-quarter earnings surprise of 7.2%, on average.
Five Below FIVE currently has an Earnings ESP of +0.22% and a Zacks Rank #3. The company is expected to register bottom-line growth when it reports fourth-quarter fiscal 2022 results. The Zacks Consensus Estimate for quarterly earnings per share of $3.06 suggests an increase of 22.9% from the year-ago quarter.
Five Below’s top line is anticipated to rise year over year. The consensus mark for revenues is pegged at $1.10 billion, indicating an increase of 10.9% from the figure reported in the year-ago quarter. FIVE has a trailing four-quarter earnings surprise of 26.3%, on average.
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Expedia Group, Inc. (EXPE) : Free Stock Analysis Report
Casey's General Stores, Inc. (CASY) : Free Stock Analysis Report
Five Below, Inc. (FIVE) : Free Stock Analysis Report
Tapestry, Inc. (TPR) : Free Stock Analysis Report
