Foot Locker (FL) To Post Q3 Earnings: A Beat In The Cards?

Foot Locker, Inc. (NYSE:FL) is slated to release third-quarter fiscal 2016 results on Nov 18. The question lingering in investors’ minds is whether this retailer of athletic shoes and apparel will be able to deliver a positive earnings surprise in the quarter to be reported. In the trailing four quarters, the company outperformed the Zacks Consensus Estimate by an average 3.1%. Let’s see how things are shaping up for this announcement.

Zacks Model Shows Likely Earnings Beat

Our proven model shows that Foot Locker is likely to beat earnings estimates this quarter. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

The Most Accurate estimate stands at $1.11 and the Zacks Consensus Estimate is pegged at $1.10. So the ensuing +0.91% ESP and the company’s Zacks Rank #2 make us reasonably confident of an earnings beat.

Factors Influencing this Quarter

Foot Locker’s stellar performance is backed by effective implementation of its operational and financial initiatives. We believe that the company is likely to gain by persistently utilizing opportunities like kids’ and women’s business, shop-in-shop expansion in collaboration with its vendors, store banner.com business, store refurbishment and enhancement of assortments. Further, the company is focusing on augmenting its eCommerce platform, growing direct-to-consumer operations, margin expansion and tapping underpenetrated markets. However, a competitive retail landscape, fashion obsolescence and foreign currency headwinds remain concerns.

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:

Burlington Stores, Inc. (NYSE:BURL) has an Earnings ESP of +6.06% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Dave & Buster's Entertainment, Inc. (NASDAQ:PLAY) has an Earnings ESP of +15.39% and a Zacks Rank #3.

Express Inc. (NYSE:EXPR) has an Earnings ESP of +16.67% and a Zacks Rank #3.

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