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YETI Holdings (YETI) to Report Q1 Earnings: What's in Store?

Zacks Equity Research

YETI Holdings, Inc. YETI is scheduled to report first-quarter fiscal 2020 results on May 7, before the opening bell. In the last-reported quarter, the company delivered a positive earnings surprise of 11.6%. Moreover, it beat the Zacks Consensus Estimate in the trailing four quarters, the average beat being 50.9%.

How Are Estimates Placed?

The Zacks Consensus Estimate for fiscal first-quarter earnings is pegged at 8 cents per share, suggesting no movement from the prior-year quarter level. For revenues, the consensus mark is pegged at $158 million, indicating an increase of 1.7% from the year-ago figure.

Let's take a look at how things have shaped up in the quarter.

YETI Holdings, Inc. Price and EPS Surprise

 

YETI Holdings, Inc. Price and EPS Surprise

YETI Holdings, Inc. price-eps-surprise | YETI Holdings, Inc. Quote

Factors at Play

Robust segmental performances, brand presence and supply chain are likely to have aided first-quarter performance. Also, initiatives like product innovation and expansion strategies along with adoption of its new distribution channel (Lowe's) are likely to have boosted the top line in the to-be-reported quarter. 

Moreover, cost improvements across its portfolios and favorable shift in the channel mix are likely to have driven earnings in first-quarter 2020 despite currency headwinds. Its four strategic growth drivers — expansion of the customer base, introduction of products, acceleration of direct-to-consumer and international expansion — are commendable as well.

However, the coronavirus pandemic is expected to have materially affected YETI Holdings’ performance in the fiscal first quarter owing to reduced traffic in the wake of retail store closures. 

What Our Model Says

Our proven model does not conclusively predict an earnings beat for YETI Holdings this time around. A stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to beat estimates. That is not the case here.

Earnings ESP: YETI Holdings has an Earnings ESP of -37.39%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: YETI Holdings, which shares space with Clarus Corporation CLAR, Pool Corporation POOL and Vista Outdoor Inc. VSTO in the Leisure and Recreation Products industry, currently has a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

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