Can Hibbett (HIBB) Stay On Earnings Surprise Track In Q1?
Zacks Investment Research | May 12, 2016 06:12AM ET
Hibbett Sports Inc. (NASDAQ:HIBB) is slated to report first-quarter fiscal 2017 results on May 20. In the last quarter, the company had delivered a positive earnings surprise of 1.3%.
Additionally, the company delivered an average positive earnings surprise of 1.4% in the trailing four quarters. Let’s see how things are shaping up for this announcement.
Factors Influencing This Quarter
Following the soft fourth-quarter fiscal 2016 sales results, the company remains encouraged by its merchandising initiatives and expects to gain from them in the spring season, which should benefit first quarter fiscal 2017 sales. Also, the company is confident of succeeding in its ongoing omni-channel initiative under the guidance of the recently appointed Vice President of Digital Commerce. Moreover, the company’s strong balance sheet bodes well as it provides the required financial flexibility to take up strategic endeavors such as expansion of store base.
However, the company provided a soft guidance for fiscal 2017 citing increased costs from its ongoing omni-channel initiatives, which will impact fiscal 2017 earnings by nearly 14–16 cents per share. The soft guidance makes us somewhat cautious about the upcoming results.
Earnings Whispers
Our proven model does not conclusively show that Hibbett is likely to beat on earnings this quarter. This is because a stock needs to have both a positive Zacks Investment Research
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