Advertisement
Canada markets close in 2 hours 55 minutes
  • S&P/TSX

    22,176.52
    +69.44 (+0.31%)
     
  • S&P 500

    5,251.94
    +3.45 (+0.07%)
     
  • DOW

    39,778.63
    +18.55 (+0.05%)
     
  • CAD/USD

    0.7388
    +0.0016 (+0.21%)
     
  • CRUDE OIL

    82.77
    +1.42 (+1.75%)
     
  • Bitcoin CAD

    95,656.91
    +1,925.74 (+2.05%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • GOLD FUTURES

    2,242.00
    +29.30 (+1.32%)
     
  • RUSSELL 2000

    2,127.72
    +13.37 (+0.63%)
     
  • 10-Yr Bond

    4.1910
    -0.0050 (-0.12%)
     
  • NASDAQ

    16,380.49
    -19.03 (-0.12%)
     
  • VOLATILITY

    12.98
    +0.20 (+1.56%)
     
  • FTSE

    7,952.62
    +20.64 (+0.26%)
     
  • NIKKEI 225

    40,168.07
    -594.66 (-1.46%)
     
  • CAD/EUR

    0.6837
    +0.0032 (+0.47%)
     

Will Wolverine (WWW) Miss Q2 Earnings on Strong Dollar? - Analyst Blog

Wolverine World Wide Inc. WWW, one of the leading footwear brands, is set to report its second-quarter fiscal 2015 results on Jul 21. Last quarter, it posted a positive surprise of 8.8%. Let's see how things are developing prior to this announcement.

Factors to Consider This Quarter

Strengthening of the U.S dollar is expected to have an adverse impact on the company’s second-quarter performance given its widespread overseas operations. Moreover, exit of the Patagonia Footwear license, store closures and extensive brand building exercise will weigh on Wolverine’s performance.

Earnings Whispers

Our proven model does not conclusively project Wolverine as likely to beat earnings this quarter. That is because a stock needs to have both a positive  Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) for this to happen. This is not the case here as you will see below.

Zacks ESP: ESP for Wolverine is 0.00%. This is because both the Most Accurate Estimate and the Zacks Consensus Estimate stand at 21 cents.

Zacks Rank: Wolverine’s Zacks Rank #3 increases the predictive power of ESP but we need to have a positive ESP to be confident about an earnings surprise.

We caution against stocks with a Zacks Rank #4 and #5 (Sell-rated stocks) going into an earnings announcement, especially when the company is seeing negative estimate revisions.

Stocks to Consider

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

Skechers USA Inc. SKX has an Earnings ESP of +2.02% and a Zacks Rank #1.

Amazon.com Inc. AMZN has an Earnings ESP of +33.33% and a Zacks Rank #2.

Hanesbrands Inc. HBI has an Earnings ESP of +6.00% and a Zacks Rank #2.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
WOLVERINE WORLD (WWW): Free Stock Analysis Report
 
AMAZON.COM INC (AMZN): Free Stock Analysis Report
 
SKECHERS USA-A (SKX): Free Stock Analysis Report
 
HANESBRANDS INC (HBI): Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research