Yahoo Finance Factors Shaping Stitch Fix's (SFIX) Fate in Q3 Earnings
Stitch Fix, Inc. SFIX is scheduled to report third-quarter fiscal 2020 numbers on Jun 8, after market close. Notably, this online personal styling service company has a trailing four-quarter positive earnings surprise of 147.9%, on average.
However, the Zacks Consensus Estimate for fiscal third-quarter bottom line is pegged at a loss of 17 cents, suggesting a significant decline from earnings of 7 cents reported in the year-ago quarter. Moreover, the consensus estimate for quarterly revenues stands at $391.6 million, which indicates a decline of 4.2% from the year-ago quarter’s tally.
Stitch Fix, Inc. Price and EPS Surprise
Stitch Fix, Inc. price-eps-surprise | Stitch Fix, Inc. Quote
Key Factors to Note
Owing to coronavirus, Stitch Fix withdrew its guidance for the third quarter and fiscal 2020. Management also informed that it had temporarily shuttered two distribution centers in South San Francisco, CA, and Bethlehem, PA, in compliance with local regulations. In addition, the company has been grappling with elevated SG&A expenses for a while now. Any deleverage in SG&A expenses and other costs may show on the company’s bottom line in the quarter under review. Furthermore, heightened promotional activity in retail and concerns related to Brexit are other deterrents.
Nonetheless, management had cited that the company continued to ship products via distribution centers in the United States. It had also informed that the company’s four distribution centers across the United States were operational. Additionally, Stitch Fix’s direct-buy initiative, which allows customers to select and buy items directly from its website or app, is impressive. Also, strength in the women’s and men’s categories bode well. Encouragingly, the Zacks Consensus Estimate for active clients currently stands at 3.3 million, suggesting a rise of 6.5% from the year-ago quarter.
What Does the Zacks Model Say?
Our proven model does not predict an earnings beat for Stitch Fix 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. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Although Stitch Fix carries a Zacks Rank #3, its Earnings ESP of 0.00% makes surprise prediction difficult.
Stocks With a 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:
Fastenal FAST has an Earnings ESP of +2.37 and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here..
Casey’s CASY has an Earnings ESP of +40.82% and a Zacks Rank #3.
Chico's FAS CHS has an Earnings ESP of +67.74% and a Zacks Rank #3.
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Stitch Fix, Inc. (SFIX) : Free Stock Analysis Report
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