Have you ever been trying to find a inventory that is likely to be well-positioned to take care of its earnings-beat streak in its upcoming report? It’s price contemplating Bathtub & Physique Works (BBWI), which belongs to the Zacks Retail – Miscellaneous trade.
This proprietor of Victoria’s Secret, Bathtub & Physique Works and different chain shops has a longtime file of topping earnings estimates, particularly when trying on the earlier two experiences. The corporate boasts a median shock for the previous two quarters of 6.12%.
For the final reported quarter, Bathtub & Physique Works got here out with earnings of $0.49 per share versus the Zacks Consensus Estimate of $0.46 per share, representing a shock of 6.52%. For the earlier quarter, the corporate was anticipated to put up earnings of $0.35 per share and it truly produced earnings of $0.37 per share, delivering a shock of 5.71%.
With this earnings historical past in thoughts, latest estimates have been transferring larger for Bathtub & Physique Works. In actual fact, the Zacks Earnings ESP (Anticipated Shock Prediction) for the corporate is optimistic, which is a superb signal of an earnings beat, particularly while you mix this metric with its good Zacks Rank.
Our analysis reveals that shares with the mixture of a optimistic Earnings ESP and a Zacks Rank #3 (Maintain) or higher produce a positive surprise nearly 70% of the time. In different phrases, when you have 10 shares with this mixture, the variety of shares that beat the consensus estimate may very well be as excessive as seven.
The Zacks Earnings ESP compares the Most Correct Estimate to the Zacks Consensus Estimate for the quarter; the Most Correct Estimate is a model of the Zacks Consensus whose definition is expounded to vary. The thought right here is that analysts revising their estimates right before an earnings release have the most recent info, which may probably be extra correct than what they and others contributing to the consensus had predicted earlier.
Bathtub & Physique Works has an Earnings ESP of +1.72% in the intervening time, suggesting that analysts have grown bullish on its near-term earnings potential. While you mix this optimistic Earnings ESP with the inventory’s Zacks Rank #2 (Purchase), it reveals that one other beat is probably across the nook. The corporate’s subsequent earnings report is anticipated to be launched on February 27, 2025.
When the Earnings ESP comes up adverse, buyers ought to observe that this may cut back the predictive energy of the metric. However, a adverse worth just isn’t indicative of a inventory’s earnings miss.
Many firms find yourself beating the consensus EPS estimate, although this isn’t the one cause why their shares achieve. Moreover, some shares could stay steady even when they find yourself lacking the consensus estimate.
Due to this, it is actually necessary to examine an organization’s Earnings ESP forward of its quarterly launch to extend the chances of success. Be certain that to make the most of our Earnings ESP Filter to uncover the very best shares to purchase or promote earlier than they’ve reported.
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Bath & Body Works, Inc. (BBWI) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the writer and don’t essentially replicate these of Nasdaq, Inc.
