Is PVH Corp. (PVH) Likely to Miss Earnings? - Analyst Blog

PVH Corp. PVH is slated to report its first-quarter fiscal 2014 results after the market closes on June 4, 2014. In the last quarter, it posted a negative surprise of 0.69%. Let's see how things are shaping up for this announcement.

Factors Influencing the Quarter

PVH Corp. has shifted its focus from lower-margin products to expanding higher-margin businesses in order to drive long-term growth and enhance shareholder value. Progressing in this direction, the company recently entered into agreements to market its Calvin Klein and IZOD brands in various countries. However, we believe the company's soon to be announced quarter's results will bear the impact of diminished sale due to the adverse weather conditions early in the quarter as well as the shift of Easter into April this year. Nevertheless, the company's results will slightly benefit from the Easter sales in April.

Earnings Whispers?

Our proven model does not conclusively show that PVH Corp. 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:

Zacks ESP: ESP (Expected Surprise Prediction) for PVH Corp. is 0.00%. This is because the Most Accurate estimate stands at $1.49, which is in line with the Zacks Consensus Estimate.

Zacks Rank #4 (Sell): PVH Corp's Zacks Rank #4 when combined with 0.00% ESP makes surprise prediction unlikely. We caution against stocks with a Zacks Ranks #4 and #5 (Sell-rated stocks) going into earnings announcement, especially when the company is seeing negative estimate revisions.

Stocks That Warrant a Look

Here are some other companies you may want to consider as our model shows they have the right combination of elements:

The Cooper Companies Inc. COO has an Earnings ESP of +0.62% and a Zacks Rank #2 (Buy).

HD Supply Holdings Inc. HDS Earnings ESP stands at +11.77% and it carries a Zacks Rank #3 (Hold).

Joy Global Inc. JOY with an Earnings ESP of +4.29% holds a Zacks Rank #3.