Will PVH Corp. (PVH) Miss Earnings? - Analyst Blog

PVH Corp. PVH is slated to report its fourth-quarter and fiscal 2013 results on March 25, 2014. In the last quarter, it posted a positive surprise of 2.2%. Let's see how things are shaping up for this announcement.

Factors this Past Quarter

PVH Corp. delivered better-than-expected third-quarter fiscal 2013 results. Strong revenue growth from the acquisition of The Warnaco Group Inc. and improved margins were the driving factors behind the sturdy results. Revenue growth during the quarter was attributed to robust sales performances across all segments of the company. Following the lackluster holiday sales, the company lowered its revenue forecast while it retained its earnings per share guidance.

PVH Corp. is now focused on brand building, asset management, global expansion and effective implementation of business strategies to drive long-term growth. We believe that the company is moving in the right direction, which will help it to exploit opportunities in the lifestyle apparel market.

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 for this to happen. This is not the case here, as you will see below.

Negative Zacks ESP: ESP for PVH Corp. is -2.08%. This is because the Most Accurate estimate stands at $1.41, while the Zacks Consensus Estimate is pegged at $1.44.

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

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:

G-III Apparel Group Ltd. GIII has an Earnings ESP of +4.26% and a Zacks Rank #2 (Buy).

CarMax Inc. KMX has an Earnings ESP of +1.89% and a Zacks Rank #2 (Buy).

Lululemon Athletica Inc. LULU has an Earnings ESP of +1.39% and a Zacks Rank #3 (Hold).