Will Citi Trends (CTRN) Miss Earnings Estimates? - Analyst Blog
21 May 2014 - 12:00AM
Zacks
Citi Trends, Inc.
(CTRN), a value-priced retailer of urban fashion apparel and
accessories, is slated to report its first-quarter fiscal 2014
results on May 21, 2014. In the last quarter, it posted a negative
surprise of 10.0%. Let’s see how things are shaping up for this
announcement.
Factors Influencing
This Quarter
We believe that the severe winter
will have an impact on the company’s first-quarter results as the
industry witnessed lower footfall at the stores as consumers were
unable to step out of their homes.
However, following the improvement
of weather conditions through the second half of February and an
extended winter (colder than usual) weather throughout March, the
businesses of most retailers picked up. Increased promotions and
demand for winter products helped clear the stocked up winter
inventory in the second half of the first quarter. From
profitability perspective, the colder-than-usual weather in March
would have helped retailer to recover a portion of the loss
suffered earlier in the quarter.
Earnings
Whispers?
Our proven model does not
conclusively show that Citi Trends 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 (Expected Surprise Prediction) for Citi Trends is
-1.92% since the Most Accurate estimate stands at 51 cents per
share, which is lower than the Zacks Consensus Estimate of 52
cents.
Zacks Rank #3
(Hold): Citi Trends’ Zacks Rank #3 increases the
predictive power of ESP. However, we need to have a positive ESP to
be confident of an earnings surprise.
Other Stocks to
Consider
Here are some companies you may
want to consider as our model shows they have the right combination
to post an earnings beat:
L Brands, Inc.
(LB) has an Earnings ESP of +1.96% and a Zacks Rank #3.
The Gap, Inc.
(GPS) holds an Earnings ESP of +1.79% and a Zacks Rank #3.
Tiffany & Co.
(TIF) with an Earnings ESP of +1.30% carries a Zacks Rank #3.
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CITI TRENDS INC (CTRN): Free Stock Analysis Report
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