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Factors to Know Ahead of Ollie's Bargain (OLLI) Q1 Earnings

Ollie's Bargain Outlet Holdings, Inc. OLLI is likely to register an increase in the top line when it reports first-quarter fiscal 2023 numbers on Jun 7 before market open. The Zacks Consensus Estimate for revenues is pegged at $450.9 million, indicating an increase of 10.9% from the prior-year quarter.

The bottom line of this extreme-value retailer of brand-name merchandise is anticipated to have more than doubled year over year. We note that the Zacks Consensus Estimate for first-quarter earnings per share has been stable at 49 cents over the past 30 days. The figure suggests a sharp increase from 20 cents reported in the year-ago period.

The company has a trailing four-quarter negative earnings surprise of 17.9%, on average. In the last reported quarter, this Harrisburg, PA-based company’s bottom line outperformed the Zacks Consensus Estimate by 5%.

Key Factors to Consider

Ollie's Bargain’s business operating model of “buying cheap and selling cheap,” cost-containment efforts, focus on store productivity and the expansion of the customer loyalty program, Ollie's Army, are likely to have contributed to the top-line performance.

The company’s focus on value-driven merchandise assortments positioned it well to capitalize on opportunities in the marketplace and effectively meet consumer demand. Ollie's Army continued to be a major sales driver, with membership increasing continuously.

Ollie's Bargain Outlet Holdings, Inc. Price, Consensus and EPS Surprise

Ollie's Bargain Outlet Holdings, Inc. Price, Consensus and EPS Surprise
Ollie's Bargain Outlet Holdings, Inc. Price, Consensus and EPS Surprise

Ollie's Bargain Outlet Holdings, Inc. price-consensus-eps-surprise-chart | Ollie's Bargain Outlet Holdings, Inc. Quote

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While the aforementioned factors raise optimism about the outcome, margins still remain an area to watch. Any deleverage in SG&A expenses due to higher selling expenses associated with new store unit growth, as well as investments in wages and higher utility costs, may have a direct bearing on margins.

What the Zacks Model Unveils

Our proven model does not conclusively predict an earnings beat for Ollie's Bargain this time. 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. However, that’s not the case here.

Ollie's Bargain has a Zacks Rank #2 but 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 this season:

Bath & Body Works BBWI currently has an Earnings ESP of +0.39% and a Zacks Rank #3. The company is likely to register a decrease in the bottom line when it reports second-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for the quarterly earnings per share of 32 cents suggests a decline of 38.5% from the year-ago quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.

Bath & Body Works’ top line is expected to decrease year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $1.57 billion, which indicates a decline of 3% from the figure reported in the prior-year quarter. Bath & Body Works has a trailing four-quarter earnings surprise of 44.6%, on average.

Costco COST currently has an Earnings ESP of +0.16% and a Zacks Rank #3. The company is expected to register an increase in the bottom line when it reports fourth-quarter fiscal 2023 results. The Zacks Consensus Estimate for quarterly earnings per share of $4.65 suggests an increase of 10.7% from the year-ago quarter.

Costco’s top line is anticipated to have risen year over year. The consensus mark for Costco’s revenues is pegged at $78.87 billion, indicating an increase of 9.4% from the figure reported in the year-ago quarter. Costco has a trailing four-quarter earnings surprise of 1.8% on average.

Deckers DECK currently has an Earnings ESP of +1.24% and a Zacks Rank of #3. The company is likely to register an increase in the bottom line when it reports first-quarter fiscal 2024 results. The Zacks Consensus Estimate for quarterly earnings per share of $2.13 suggests an increase of 28.3% from the year-ago quarter.

Deckers’ top line is expected to have increased year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $664.4 million, which suggests a rise of 8.1% from the figure reported in the prior-year quarter.

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

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Deckers Outdoor Corporation (DECK) : Free Stock Analysis Report

Costco Wholesale Corporation (COST) : Free Stock Analysis Report

Ollie's Bargain Outlet Holdings, Inc. (OLLI) : Free Stock Analysis Report

Bath & Body Works, Inc. (BBWI) : Free Stock Analysis Report

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