Hibbett Sports (NASDAQ:HIBB), Inc. HIBB is slated to release third-quarter fiscal 2021 results on Nov 20, before the opening bell. The company delivered a negative earnings surprise of 68.6% in the last reported quarter. However, the bottom-line beat estimates by 44.2%, on average, in the trailing four quarters.
The Zacks Consensus Estimate for fiscal third-quarter earnings is pegged at 41 cents, suggesting growth of 24.2% from 33 cents reported in the year-ago period. The consensus estimate has been stable in the past 30 days.
Factors to Note
Owing to the closure of competitor stores, Hibbett has been gaining from improved traffic in stores. Meanwhile, the pandemic-led shift in consumers’ shopping preference is aiding online sales. Solid performance across apparel and footwear, athletic brands and performance business is likely to have acted as a tailwind in the to-be-reported quarter.
Further, it has been leveraging its omni-channel capabilities such as home delivery, buy online and pick-up in store, reserve online and pick-up in store, buy online ship to store facility, same day delivery and mobile app services to fulfill online orders and serve customers. Gains from these efforts will get reflected in the company’s fiscal third-quarter sales.
Moreover, it remains focused on increasing customer base by connecting with more customers through e-commerce and selective store expansion. In sync with its store expansions efforts, Hibbett launched a concept store with fulfillment options like Curbside Pick Up and “Buy Online, Pick Up In Store”. Additionally, management has been increasing focus on promotions and marketing strategies for the online business given the robust online demand.
On its last earnings call, the company noted that initial fiscal third-quarter sales remained robust. It anticipated comps growth of mid-single digit for second half of fiscal 2021. Moreover, it projected earnings between 85 cents and $1 per share. Gross margin is estimated to expand nearly 50-70 bps in the second half of fiscal 2021.
However, it has been witnessing elevated expenses owing to increased investments in the e-commerce space. Also, uncertain impacts of COVID-19 remain a concern.
Hibbett Sports, Inc. Price and EPS Surprise
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Hibbett this season. 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.
Hibbett has a Zacks Rank #3 and an Earnings ESP of 0.00%.
Stocks Poised to Beat Earnings Estimates
Here are some companies that you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this time around.
Signet Jewelers (NYSE:SIG) Limited SIG has an Earnings ESP of +13.95% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Best Buy Co (NYSE:BBY)., Inc. BBY has an Earnings ESP of +14.92% and a Zacks Rank #2.
DICK’S Sporting Goods, Inc. DKS has an Earnings ESP of +16.18% and a Zacks Rank #3.
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