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Factors Likely to Decide Buckle's (BKE) Fate in Q1 Earnings

The Buckle, Inc. BKE is scheduled to report first-quarter fiscal 2020 numbers on May 22, before market open. In the trailing four quarters, the company’s bottom line outperformed the Zacks Consensus Estimate by 3.6%, on average. In the last reported quarter, the company beat the consensus mark by 9.1%.

The Zacks Consensus Estimate for first-quarter loss of 10 cents has widened by a penny in the past 30 days. Moreover, this suggests a significant decline from earnings of 31 cents reported in the year-ago quarter.

Key Things to Note

Buckle has been bearing the brunt of dismal top-line performances stemming from the adversities related to the COVID-19 outbreak, which forced it to shut stores. This is likely to have hurt the company’s first-quarter top-line performance.

Notably, net sales for the 13-week fiscal quarter ended May 2, 2020, decreased 42.7% to $115.4 million compared with net sales of $201.3 million recorded in the 13-week fiscal quarter ended May 4, 2019. This was mostly driven by soft sales reported in April and March, despite delivering sales growth of 6% in February.

Net sales for March (five-week fiscal month ended Apr 4) plunged 50.2% to $41 million, followed by an 80.8% decline to $11.4 million in April (four-week fiscal month ended May 2).

However, the company’s online store remained open throughout, which has partly cushioned the decline in sales to some extent. Notably, its online sales rose 31.5% year over year to $32.1 million for the 13 weeks ended May 2.

Apart from this, the company is likely to have witnessed higher costs to operate its online site and distribution centers amid the pandemic, which is expected to get reflected on its first-quarter bottom-line performance.

Buckle, Inc. The Price and EPS Surprise

What Our Zacks Model Says

Our proven model does not predict an earnings beat for Buckle 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.

Buckle carries a Zacks Rank #4 (Sell) and an Earnings ESP of 0.00%.

Stocks Poised to Beat Earnings Estimates

Here are a few companies you may want to consider, as our model shows that these have the right combination to post an earnings beat:

Kroger KR has an Earnings ESP of +4.52% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Big Lots BIG has an Earnings ESP of +18.72% and a Zacks Rank #3.

Lowes Companies LOW has an Earnings ESP of +3.33% and a Zacks Rank #3.

5 Stocks Set to Double

Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

Today, See These 5 Potential Home Runs >>

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Big Lots, Inc. (BIG): Free Stock Analysis Report
Lowes Companies, Inc. (LOW): Free Stock Analysis Report
The Kroger Co. (KR): Free Stock Analysis Report
Buckle, Inc. The (BKE): Free Stock Analysis Report
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