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Factors Likely to Decide V.F. Corp's Fate (VFC) in Q1 Earnings

V.F. Corporation VFC is slated to report first-quarter fiscal 2023 results on Jul 28. The Zacks Consensus Estimate for fiscal first-quarter earnings is pegged at 14 cents per share, which suggests a decline of 48.2% from 27 cents reported in the year-ago quarter. Earnings estimates have been unchanged in the past 30 days. However, the consensus mark for revenues is pegged at $2.23 billion, indicating growth of 1.7% from that reported in the year-ago quarter.

In the last reported quarter, the company’s earnings were in line with the Zacks Consensus Estimate. Its earnings surpassed the Zacks Consensus Estimate by 38%, on average, in the trailing four quarters.

Key Factors to Note

V.F. Corp has been witnessing broad-based momentum across brands, which is expected to have continued in the fiscal first quarter. Strength in the EMEA and North America regions, as well as gains from the Supreme buyout, should have aided the top line in the fiscal first quarter.

The company has been benefitting from Supreme’s strong follower base in the younger generation. On its last reported quarter’s earnings call, management expected the Supreme buyout to contribute $600 million to revenues and 25 cents per share to adjusted earnings in fiscal 2022.

However, the company continues to witness sluggishness in the APAC region, particularly China, due to drab traffic stemming from the COVID-related lockdowns, local regulations, travel restrictions and consumer anxiety. On its last reported quarter’s earnings call, the company predicted business in the China region to be down 35% in the fiscal first quarter.

Also, elevated SG&A costs and rising freight expenses related to supply-chain disruptions remain headwinds. Continued congestion and disruption from labor shortages and equipment constraints across the logistics network are expected to have hurt the bottom line. For first-quarter fiscal 2023, the company envisioned the bottom line to be 10-15 cents, suggesting a decline from the prior-year quarter’s reported figure of 27 cents.

V.F. Corporation Price and EPS Surprise

 

V.F. Corporation price-eps-surprise | V.F. Corporation Quote

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. 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 #3 and an Earnings ESP of 0.00%.

Stocks With Favorable Combination

Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:

MGM Resorts International MGM has an Earnings ESP of +60.20% and currently sports a Zacks Rank of 1. The company is likely to register an increase in the bottom line when it reports second-quarter 2022 results. The Zacks Consensus Estimate for quarterly earnings moved 21% north to 29 cents per share, suggesting a surge of 323.1% from the year-ago quarter’s reported number.

You can see the complete list of today’s Zacks #1 Rank stocks here.

MGM Resorts International’s top line is expected to have risen year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $3.05 billion, suggesting a rise of 34.3% from the figure reported in the prior-year quarter. MGM has delivered an earnings beat of 212.5%, on average, in the trailing four quarters.

Wyndham Hotels & Resorts WH currently has an Earnings ESP of +1.55% and a Zacks Rank of 3. The company is likely to register an increase in the bottom line when it reports second-quarter 2022 results. The Zacks Consensus Estimate for quarterly earnings is pegged at 97 cents, which indicates a year-over-year improvement of 2.1%. The consensus mark has increased by a penny in the past 30 days.

The Zacks Consensus Estimate for Wyndham Hotels & Resorts’ quarterly revenues is pegged at $359.2 million, suggesting a decline of 11.5% from the year-ago quarter’s reported number. WH delivered an earnings beat of 36.1%, on average, in the trailing four quarters.

BJ’s Wholesale BJ currently has an Earnings ESP of +3.61% and a Zacks Rank of 3. The company is likely to register a decrease in the bottom line when it reports second-quarter fiscal 2022 results. The Zacks Consensus Estimate for quarterly earnings has been unchanged at 80 cents per share in the past 30 days, indicating a decline of 2.4% from 82 cents registered in the year-ago quarter.

However, BJ’s Wholesale’s top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $4.7 billion, which suggests growth of 12% from the figure reported in the prior-year quarter. BJ has delivered an earnings beat of 16.1% in the trailing four quarters, on average.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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V.F. Corporation (VFC): Free Stock Analysis Report
 
MGM Resorts International (MGM): Free Stock Analysis Report
 
BJ's Wholesale Club Holdings, Inc. (BJ): Free Stock Analysis Report
 
Wyndham Hotels & Resorts (WH): Free Stock Analysis Report
 
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