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Hibbett (HIBB) to Report Q4 Earnings: What Awaits the Stock?

Zacks Equity Research
·4 min read

Hibbett Sports, Inc. HIBB is likely to register bottom-line growth when it reports fourth-quarter fiscal 2021 numbers on Mar 5. The Zacks Consensus Estimate for fiscal fourth-quarter earnings has moved up from $1.08 per share to $1.36 per share in the past 30 days. The estimate suggests significant growth from 51 cents reported in the year-ago quarter. For fiscal 2021, the Zacks Consensus Estimate for earnings is pegged at $6.10 per share, which suggests an increase from $2.33 per share posted in the in the prior year.

Notably, Hibbett has a trailing four-quarter earnings surprise of 69.2%, on average. The company’s bottom line surpassed the Zacks Consensus Estimate by a wide margin in the last reported quarter.

Hibbett Sports, Inc. Price and EPS Surprise

Hibbett Sports, Inc. Price and EPS Surprise
Hibbett Sports, Inc. Price and EPS Surprise

Hibbett Sports, Inc. price-eps-surprise | Hibbett Sports, Inc. Quote

Key Factors to Note

Recently, Hibbett announced an encouraging preliminary business update for fourth-quarter fiscal 2021. The company witnessed comparable sales (comps) growth of 21.9% year over year in the fiscal fourth quarter on the back of sustained momentum, both in-store and online. Moreover, it showcased better-than-expected performance during the holiday season. Also, comps increased 22.2% in fiscal 2021.

Driven by favorable merchandise assortment and enhanced omnichannel capabilities, management raised its previously-issued fourth-quarter view. Additionally, strong demand for footwear, apparel and accessories contributed to quarterly growth. Notably, the company now expects GAAP and adjusted earnings per share of $1.3-$1.4 for the quarter under review. For fiscal 2021, management expects GAAP earnings of $4.30-$4.40 per share and adjusted earnings of $6.05-$6.15 per share.

Additionally, Hibbett highlighted that it gained from new customer acquisitions in stores and websites in fiscal 2021, thanks to pent-up demand, government stimulus and market disruptions. Certainly, the company’s efforts to boost omnichannel operations and expand loyalty programs bode well.

However, Hibbett has been witnessing higher SG&A expenses for quite some time now. Notably, increased investments in the e-commerce space as more and more consumers are now thronging its website has been causing the downside. This is likely to have impacted performance in the quarter under review.

What the Zacks Model Unveils

Our proven model doesn’t conclusively predict an earnings beat for Hibbett 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.

Hibbett sports a Zacks Rank #1 and an Earnings ESP of 0.00%.

Stocks With Favorable Combinations

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

DICK’S Sporting Goods, Inc. DKS currently has an Earnings ESP of +3.70% and carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Dollar Tree, Inc. DLTR currently has an Earnings ESP of +1.94% and a Zacks Rank #2.

Dollar General Corporation DG currently has an Earnings ESP of +1.23% and carries a Zacks Rank #3.

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