Can Kirkland's (KIRK) Continue the Earnings Streak? - Analyst Blog
2013年11月21日 - 12:00AM
Zacks
Kirkland’s Inc.
(KIRK) is set to report third-quarter fiscal 2013 results on Nov
22. Last quarter, it posted a 70.0% positive surprise. Let us see
how things are shaping up for this announcement.
Factors to be Considered
this Quarter
Kirkland’s has been witnessing
strong traffic in its stores for the past few months, which is
expected to boost comps in the third quarter. Kirkland’s expects
earnings per share between 80 cents and 90 cents, up from the
previous guidance range of 75 cents–85 cents. Kirkland’s raised its
guidance outlook following decent conversion and customer traffic,
Kirkland’s expects fiscal 2013 total sales to increase
approximately 3% to 4% compared with fiscal 2012, instead of 3% to
5% as expected earlier.
We are encouraged by the optimistic
outlook and strong comps of the home furnishing retailer. Moreover,
with a flourishing housing sector, demand for home furnishings is
growing and it is expected to boost sales during the quarter.
Kirkland’s is also expected to improve its margins during the third
quarter as it has started to close down its smaller
under-performing stores in the malls and is opening bigger off-mall
stores at popular locations.
Earnings
Whispers?
Our proven model does not
conclusively show that KIRK is likely to beat earnings this
quarter. A stock needs to have both a positive Earnings ESP and a
Zacks Rank of #1, 2 or 3 for this to happen. However, that is not
the case here due to the following factors:
Zacks ESP: ESP for
KIRK is 0.00%
Zacks
Rank:Kirkland’s Earnings ESP of 0.00% combined with Zacks
Rank #1 (Strong Buy) makes surprise prediction difficult. So we are
not confident about an earnings beat.
We caution against stocks with
Zacks Ranks #4 and 5 (Sell-rated stocks) going into the earnings
announcement, especially when the company is seeing negative
estimate revisions momentum.
Other Stocks to
Consider
Here are some other companies you
may want to consider as our model shows that they have the right
combination of elements to post an earnings beat this quarter:
Best Buy Co.,
Inc.(BBY), with Earnings ESP of +9.09% and a Zacks Rank #1
(Strong Buy).
Tivo Inc.(TIVO),
with Earnings ESP of +16.67% and a Zacks Rank #2 (Buy).
Trina Solar
Limited (TSL), with Earnings ESP of +77.78% and a Zacks
Rank #2 (Buy).
BEST BUY (BBY): Free Stock Analysis Report
KIRKLANDS INC (KIRK): Free Stock Analysis Report
TIVO INC (TIVO): Free Stock Analysis Report
TRINA SOLAR LTD (TSL): Free Stock Analysis Report
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