Hibbett, Inc. HIBB is likely to witness year-over-year increases in the top and bottom lines when it reports first-quarter fiscal 2024 earnings on May 26. The Zacks Consensus Estimate for revenues is pegged at $462.6 million, suggesting growth of 9.1% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for earnings has been unchanged in the past 30 days at $3.18 per share, indicating a rise of 10% from the figure reported in the prior-year period.
Hibbett, which engages in the retail of athletic-inspired fashion products, has a negative trailing four-quarter earnings surprise of 13.9%, on average. HIBB’s earnings missed the Zacks Consensus Estimate by 1.7% in the last reported quarter.
Hibbett, Inc. Price and EPS Surprise
Hibbett, Inc. price-eps-surprise | Hibbett, Inc. Quote
Key Factors to Consider
Hibbett’s first-quarter fiscal 2024 results are expected to reflect gains from strong product demand, robust omni-channel capabilities and store-related initiatives. Strength in footwear and accessories has been a major growth driver.
The company’s strength in e-commerce and store expansion plans bode well. Hibbett has been benefiting from increased investments in customer acquisition and retention, store growth, improved store productivity, and better omni-channel capabilities. Strong vendor relationships have been contributing to growth in the Hibbett and City Gear brands. The company is likely to have gained from the progress on the e-commerce front and the expansion of the loyalty program.
The company has been focused on increasing its customer base by connecting with more customers through e-commerce and selective store expansion. It has been leveraging its omni-channel capabilities to fulfill online orders and serve customers. Growth in e-commerce sales is likely to have contributed to sales gains in the to-be-reported quarter.
However, the adverse impacts of the ongoing supply-chain disruptions, rising inflation, wage pressures and geopolitical challenges have been acting as deterrents. Lower product margins, and higher freight and transportation costs are likely to have marred the company’s bottom line.
On the last reported quarter’s earnings call, management anticipated witnessing inflation, an increased promotional environment, wage pressures, higher interest rates, supply-chain disruptions and more cautious consumer spending throughout fiscal 2024. This is expected to have weighed on the gross and operating margins in the to-be-reported quarter.
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for Hibbett 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, which is not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Hibbett currently has a Zacks Rank #3 and an Earnings ESP of 0.00%.
Stocks With Favorable Combination
Here are some 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:
Macy's M currently has an Earnings ESP of +2.81% and a Zacks Rank #3. The company is expected to register top and bottom-line declines when it reports first-quarter fiscal 2023 results. The Zacks Consensus Estimate for quarterly earnings per share of 46 cents suggests a decline of 57.4% from the year-ago quarter’s reported figure.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Macy’s top line is anticipated to move down year over year. The consensus mark for revenues is pegged at $5.1 billion, indicating a decrease of 4.4% from the figure reported in the year-ago quarter.
Ulta Beauty ULTA currently has an Earnings ESP of +1.38% and a Zacks Rank of 3. The company is likely to register increases in the top and bottom lines when it reports first-quarter fiscal 2023 numbers. The consensus mark for ULTA’s quarterly earnings has moved up 0.9% in the past seven days to $6.81 per share. The consensus estimate suggests 8.1% growth from the year-ago quarter’s reported number.
The Zacks Consensus Estimate for Ulta Beauty’s quarterly revenues is pegged at $2.6 billion, which suggests an increase of 11.5% from the figure reported in the prior-year quarter.
Costco Wholesale COST currently has an Earnings ESP of +0.04% and a Zacks Rank of 3. The company is likely to register top and bottom-line growth when it reports third-quarter fiscal 2023 results. The consensus mark for COST’s quarterly revenues is pegged at $54.6 billion, which suggests a rise of 3.8% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Costco Wholesale’s earnings has moved down 1.2% to $3.32 per share in the past 30 days. The consensus estimate indicates 4.7% growth from the year-ago quarter’s reported figure.
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