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Columbia Sportswear (COLM) to Post Q4 Earnings: Things to Note

Columbia Sportswear Company COLM is likely to register top-line growth when it reports fourth-quarter 2022 earnings on Feb 2. The Zacks Consensus Estimate for revenues is pegged at $1,170 million, suggesting a jump of 3.6% from the prior-year quarter’s reported figure.

The Zacks Consensus Estimate for the fourth-quarter bottom line has gone up by a penny in the past 30 days to $2.31 per share. However, the projection indicates a decline of 3.4% from the year-ago quarter’s reported figure.

Columbia Sportswear has a trailing four-quarter earnings surprise of 59.2%, on average. This outdoor, active and everyday lifestyle apparel, footwear, accessories and equipment company reported an earnings surprise of 7.8% in the last reported quarter.

Columbia Sportswear Company Price, Consensus and EPS Surprise

Columbia Sportswear Company Price, Consensus and EPS Surprise
Columbia Sportswear Company Price, Consensus and EPS Surprise

Columbia Sportswear Company price-consensus-eps-surprise-chart | Columbia Sportswear Company Quote

Factors to Consider

Columbia Sportswear’s focus on its strategic priorities has been helping. Toward this end, the company has been committed to its demand creation investments, which are aimed at driving brand awareness and aiding sales. Further, the company remains committed to enhancing consumers’ experience and its digital capacity in all networks and regions.

It has also been exploring growth opportunities in the Direct-to-Consumer business and improving support processes. The company is keen on investing in its people and optimizing its organization across its brand portfolio. Columbia Sportswear undertakes brand-enhancing and unique marketing initiatives, which have been strengthening its presence in the apparel industry.

In its third-quarter earnings release, management stated that it remains encouraged about its innovative products for the Fall season, including the expanded Omni-Heat Infinity collection and the new poly fleece innovation – Omni-Heat Helix. This bodes well for the quarter under review. For the fourth quarter of 2022, the company expects net sales growth of 1-7% to the $1.14-$1.21 billion band.

That said, COLM has been seeing higher SG&A costs for a while now. SG&A expenses are anticipated to have risen nearly in line with sales growth in 2022. Also, elevated inbound freight costs, and the adverse channel and regional sales mix are concerns.

For 2022, management expects gross margin contraction of 250-220 bps to 49.1-49.4%. In its third-quarter earnings release, management stated that it continues to expect order cancelation risks and an increased promotional environment in the fourth quarter.

What the Zacks Model Unveils

Our proven model doesn’t conclusively predict an earnings beat for Columbia Sportswear this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is not the case here.

Columbia Sportswear has a Zacks Rank #3 and an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks With the Favorable Combination

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

lululemon athletica LULU currently has an Earnings ESP of +0.07% and a Zacks Rank of 3. LULU is likely to register a top-line improvement when it reports fourth-quarter fiscal 2022 numbers. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for lululemon athletica’s quarterly revenues is pegged at $2.7 billion, calling for growth of 26.4% from the prior-year quarter’s reported figure. The Zacks Consensus Estimate for the quarterly EPS of $4.24 suggests a 25.8% increase from the figure reported in the year-ago fiscal quarter. LULU has a trailing four-quarter earnings surprise of 6.7%, on average.

Freshpet, Inc. FRPT is likely to register top and bottom-line growth when it reports fourth-quarter 2022 results. FRPT has an Earnings ESP of +2.04% and a Zacks Rank #3. The Zacks Consensus Estimate for Freshpet’s bottom line has remained unchanged at a loss of 8 cents in the past 30 days, indicating 61.9% growth from the year-ago period reported figure.

FRPT has a trailing four-quarter negative earnings surprise of roughly 88%, on average. The consensus mark for Freshpet’s top line is pegged at $151.1 million, calling for growth of 30.4% from the prior-year quarter’s reported figure.

Kellogg Company K currently has an Earnings ESP of +3.39% and a Zacks Rank of 3. K is expected to register a top-line improvement when it reports fourth-quarter 2022 numbers.

The Zacks Consensus Estimate for Kellogg's quarterly revenues is pegged at $3.7 billion, calling for growth of 6.7% from the prior-year quarter’s reported figure. The Zacks Consensus Estimate for the quarterly EPS of 84 cents suggests a 1.2% increase from the figure reported in the year-ago fiscal quarter. K has a trailing four-quarter earnings surprise of 10.6%, on average.

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

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Columbia Sportswear Company (COLM) : Free Stock Analysis Report

lululemon athletica inc. (LULU) : Free Stock Analysis Report

Freshpet, Inc. (FRPT) : Free Stock Analysis Report

Kellogg Company (K) : Free Stock Analysis Report

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