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Factors Likely to Influence Wolverine's (WWW) Q1 Earnings

Wolverine World Wide, Inc. WWW is likely to witness top- and bottom-line growth when it reports first-quarter 2021 results. The Zacks Consensus Estimate for quarterly revenues is pinned at $508 million, which indicates growth of more than 15% from the year-ago quarter’s tally.

The Zacks Consensus Estimate for the company’s first-quarter earnings is pegged at 38 cents, which suggests an increase of more than 35% from 28 cents earned in the year-ago quarter. In the last reported quarter, the Rockford, MI-based company delivered an earnings surprise of 23.5%, on average.

Key Factors

Wolverine’s first-quarter performance is likely to have benefitted from growth in its e-commerce business. Markedly, the company’s global D2C e-commerce business has been pretty strong. In order to support growth in the digital arena, the company is investing toward strengthening of distribution centers. Additionally, it focuses on boosting social presence, digital content and flow of information as well as better management of consumer database.

Moreover, Wolverine is likely to have gained from strong brand growth, including Saucony and Merrell. Brands, especially in performance, athletic, outdoor and work categories, have been performing well. Further, the company‘s efforts to develop an efficient sourcing structure and diversify global business are likely to have remained as upsides during the first quarter.

However, adverse impacts stemming from the pandemic upon the company’s business operations cannot be ruled out.  Moreover, rising expenses are likely to have been a headwind in the to-be-reported quarter. We note that the company is witnessing higher selling, general & administrative expenses, including higher digital marketing costs.

Wolverine World Wide, Inc. Price, Consensus and EPS Surprise

 

Wolverine World Wide, Inc. price-consensus-eps-surprise-chart | Wolverine World Wide, Inc. Quote

 

What the Zacks Model Unveils

Our proven model predicts an earnings beat for Wolverine 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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Wolverine currently carries a Zacks Rank #3 and an Earnings ESP of +9.57%.

Other Stocks Poised to Beat Estimates

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

V.F. Corporation VFC currently has an Earnings ESP of +2.56% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Guess?, Inc. GES has an Earnings ESP of +18.52% and a Zacks Rank #3, at present.

Target Corporation TGT currently has an Earnings ESP of +6.84% and a Zacks Rank #3.

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Target Corporation (TGT): Free Stock Analysis Report
 
V.F. Corporation (VFC): Free Stock Analysis Report
 
Guess, Inc. (GES): Free Stock Analysis Report
 
Wolverine World Wide, Inc. (WWW): Free Stock Analysis Report
 
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