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National Vision (EYE) to Report Q1 Earnings: What's in Store?

National Vision Holdings, Inc. EYE is scheduled to report first-quarter 2021 results on May 13, before market open.

In the last reported quarter, the company’s earnings of 45 cents surpassed the Zacks Consensus Estimate by 246.2%. Over the trailing four quarters, its earnings outperformed the Zacks Consensus Estimate on all occasions, the average beat being 198.3%.

Let’s see how things have shaped up prior to this announcement.

Factors at Play

National Vision is expected to report sequentially better results for the first quarter on gradual reopening of stores and return toward more normal operations. The company’s effective implementation of the safety-first approach in store operations is likely to have encouraged customer visit in this period. Per the company’s March update, the business is gradually rebounding attributable to pent-up demand from its patients and customers. Further, the company is likely to have benefited in Q1 from high demand for its low-cost eye care and eyewear offerings amid the difficult economic phase.

In particular, we are optimistic about the continued momentum in Eyeglass World. We note that, through 2020, this brand's 2020 comps declined only 2.7% despite being closed for nearly 10 weeks of the year. In the post-COVID period, per the company, Eyeglass World has really found its momentum, showing consistently strong uptick on a weekly basis. This is likely to have strongly contributed to Q1 performance.

Further, the company’s transition of its five additional Walmart Vision Centers in 2020, which have become operative of late are expected to come up withpositive Q1 results.

The company’s contact lens revenue growth is expected to have remained impressive on lesser impact of store closures on contact lens customer transactions. The contact lens category is likely to have continued to see growth in average ticket, resulting from higher adoption of newer technology lenses at increased prices.

The Estimate Picture

For first-quarter 2021, the Zacks Consensus Estimate for total revenues of $507.7 million implies 8.1% improvement from the prior-year reported figure.

The consensus estimate for earnings per share is pegged at 34 cents, implying an improvement of 21.4% from the prior-year reported figure.

What Our Model Suggests

Our proven model does not conclusively predict an earnings beat for National Vision this time around. The combination of a positive Earnings ESPand a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) increases the chances of an earnings beat.

Earnings ESP: National Vision has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company currently carries a Zacks Rank #1.

Stocks Worth a Look

Here are a few medical stocks worth considering as these have the right combination of elements to beat on earnings this reporting cycle.

AmerisourceBergen Corporation ABC has an Earnings ESP of +0.23% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Owens & Minor, Inc. OMI has an Earnings ESP of +2.41% and a Zacks Rank of 2.

Becton, Dickinson and Company BDX has an Earnings ESP of +1.16% and a Zacks Rank of 3.

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Becton, Dickinson and Company (BDX): Free Stock Analysis Report
 
Owens & Minor, Inc. (OMI): Free Stock Analysis Report
 
AmerisourceBergen Corporation (ABC): Free Stock Analysis Report
 
National Vision Holdings, Inc. (EYE): Free Stock Analysis Report
 
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