Will Zumiez (ZUMZ) Beat Earnings Estimates? - Analyst Blog

Zumiez Inc. (ZUMZ), a Washington-based retailer of sports-related teen apparel, is slated to report its first-quarter fiscal 2014 results on May 22, 2014. In the last quarter, it posted a positive surprise of 6.6%. Let's see how things are shaping up for this announcement.

Factors Influencing This Quarter

The year 2014 opened on a soft note due to severe winter.  However, following the improvement in weather conditions through the second half of February and a better job scenario, the business of this teen apparel retailer started to look up.

The company projects a loss per share of 2 cents to earnings per share of 3 cents in the first quarter. The earnings expectation also includes estimated charges of 2 cents per share related to the Blue Tomato acquisition.

However, we believe that the company's well-balanced store expansion and e-Commerce strategies will help drive its top and bottom lines, going forward.

Earnings Whispers?

Our proven model does not conclusively show that Zumiez 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 to surpass earnings estimates. However, this is not the case here, as you will see below:

Zero Zacks ESP: ESP (Expected Surprise Prediction) for Zumiez is 0.00%. This is because the Most Accurate estimate stands at 5 cents, which is in line with the Zacks Consensus Estimate.

Zacks Rank: Zumiez carries a Zacks Rank #2 (Buy). Though Zacks Rank #1, 2 or 3 increases the predictive power of ESP, the company's ESP of 0.00% makes surprise prediction difficult.

Stocks that Warrant a Look

Here are some companies you may want to consider as our model shows they have the right combination to post an earnings beat:

Abercrombie & Fitch Co. ANF has an Earnings ESP of +22.22% and a Zacks Rank #3 (Hold).

Aeropostale, Inc. ARO has an Earnings ESP of +6.94% and carries a Zacks Rank #3.

Ross Stores Inc. ROST holds an Earnings ESP of +0.86% and a Zacks Rank #3.