Buckle (BKE) Q2 Earnings: What's In The Cards For The Stock?

The Buckle, Inc. (NYSE:BKE) is slated to release second-quarter fiscal 2016 results on Aug 19. The question lingering in investors’ minds is whether this retailer of casual apparel, footwear and accessories will be able to deliver a positive earnings surprise in the quarter to be reported. In the preceding quarter, it underperformed our estimate by 11.1%. Let’s see how things are shaping up for this announcement.

Zacks Model Shows Unlikely Earnings Beat

Our proven model does not conclusively show that Buckle is likely to beat earnings estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1, 2 or 3 for this to happen. Buckle has an Earnings ESP of 0.00% as the Most Accurate estimate and the Zacks Consensus Estimate both stand at 33 cents. Moreover, the company carries a Zacks Rank #4 (Sell). We caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.

Factors Influencing this Quarter

Buckle has not been able to turn the performance of its struggling Women’s business around. Women's merchandise sales were down about 12.5% during the first quarter. Moreover, a competitive retail landscape and cautious consumer spending have been weighing upon the company’s performance. We observe that Buckle’s net sales decreased 9.8% in July, 10.1% in June and 10.4% in May. On the other hand, comparable sales also declined 10.9% in July, 10.6% in June and 11% in May. Further, analysts covering the stock are cautious about the upcoming results. This is clearly evident from the downward revision in the Zacks Consensus Estimate for the second quarter over the past 30 days. The Zacks Consensus Estimate declined approximately 5.7% over the said time frame.

BUCKLE INC Price, Consensus and EPS Surprise

BUCKLE INC Price, Consensus and EPS Surprise | BUCKLE INC Quote

Stocks Poised to Beat Earnings Estimates

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:

Hibbett Sports, Inc. (NASDAQ:HIBB) has an Earnings ESP of +7.14% and a Zacks Rank #2 (Buy).

Lowe's Companies, Inc. (NYSE:LOW) has an Earnings ESP of +2.13% and a Zacks Rank #2.

Best Buy Co., Inc. (NYSE:BBY) has an Earnings ESP of +7.14% and a Zacks Rank #2.