Wolverine World Wide Earnings Preview

Wolverine World Wide (NYSE: WWW) will be reporting its second-quarter 2011 results Tuesday, July 12, before the markets open. Investors will be watching to see if the Hush Puppy maker can continue its long string of quarterly earnings beats.Analysts are looking for the company to report per-share earnings of $0.46, which is up from $0.39 per share in the same period of last year. The consensus earnings estimate is unchanged in the past 60 days. Analysts also expect to see revenues of $294.3 million, an increase of 14.0% from a year ago.As mentioned, analysts have underestimated Wolverine World Wide quarterly earnings in the past few years. And analysts so far are looking for sequential and year-over-year growth of earnings and revenue in the current quarter.The CompanyMichigan-based Wolverine World Wide manufactures, markets, licenses, and distributes footwear, apparel, and accessories primarily in North America and Europe. Its products are available worldwide through department and specialty stores, independent distributors, Internet retailers, and about 90 company-owned retail stores in the U.S. and the UK.During the three months that ended in June, the company reported record first-quarter results and raised its full-year guidance. The Cat Footwear division teamed with Mike Rowe, creator and host of TV's Dirty Jobs to offer a line of work boots.PerformanceThe long-term earnings per share growth forecast is 13.5%, the return on equity is 20.8%, and the dividend yield is 1.0%. The P/E ratio is less than the industry average. The consensus recommendation is to buy the stock; three of 11 analysts rate it a Strong Buy.The share price is about 38% higher than six months ago. During that time, the stock has outperformed competitors Deckers (NASDAQ: DECK) and Skechers (NYSE: SKX), as well as the industry average and the broader markets.Action Items:Bullish: Traders looking for exchange traded funds with positions in Wolverine World Wide might want to consider the following trades:

• PowerShares S&P SmallCap Consumer Discretionary Portfolio (NASDAQ: PSCD)
• iShares S&P SmallCap 600 Growth Index Fund (NYSE: IJT)

Bearish:
Traders looking for stronger growth than Wolverine World Wide has to offer may want to consider these alternate positions:

• Timberland (NYSE: TBL)
• Crocs (NASDAQ: CROX)

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