Columbia Sportswear (COLM) to Release Fourth Quarter Results: Factors to Note

Columbia sportswear company COLM is likely to see improved revenue and earnings when it reports fourth quarter 2021 results results on February 3, after market close. Zacks’ consensus estimate for its quarterly revenue is pegged at $1,060 million, indicating about a 15.8% improvement over the prior year’s figure.

Zacks’ consensus estimate for fourth-quarter earnings per share currently stands at $1.78, suggesting a sharp increase from the $1.44 per share reported a year ago. The consensus mark is up a penny in the last 30 days.

For 2021, the revenue consensus mark is set at $3.06 billion, indicating growth of 22.2% over last year. Again, the consensus earnings per share estimate for the full year stands at $4.73, suggesting a significant improvement from the $1.62 reported a year ago.

This designer, marketer and marketer of outdoor, active and everyday apparel, footwear and accessories has a four-quarter earnings surprise of 199.5%, on average. In the most recently reported quarter, the company’s net income beat Zacks’ consensus estimate by a margin of 16%.

Key Factors to Note

Strong consumer demand, innovative product pipeline, expected price increases and better inventory management likely contributed to Columbia Sportswear‘s performance. Lower promotional activity and improved in-store traffic levels may have contributed to higher average order values. Impressively, the company’s focus on improving digital and analytical capabilities as well as improving direct-to-consumer operations bodes well.

Columbia Sportswear is committed to improving the consumer experience and its digital capability across all networks and regions. The company made a point of investing in its staff and optimizing its organization through the brand portfolio.

For fiscal 2021, management estimated net sales growth of 21.5-23% to $3.04-3.08 billion. He guided gross margin expansion by 190-210 basis points to 50.8% to 51%. The company expected an operating margin in the 12.6-13.2% range, compared to an operating margin of 5.5% in 2020.

While the aforementioned factors give rise to optimism, we cannot rule out supply chain headwinds that are only becoming acute. On its latest earnings call, management pointed out that inbound shipping delays, port congestion and other logistical delays have lengthened the transit time from factory to inventory receipt.

Columbia Sportswear Company Price, Consensus and Surprise EPS

Columbia Sportswear Company price-consensus-eps-surprise-chart | Columbia Sportswear Company Quote

What the Zacks Model Reveals

Our proven model does not conclusively predict a pace for Columbia Sportswear this earnings season. The combination of a positive ESP Earnings and a Zacks rank of #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of beating gains. You can discover the best stocks to buy or sell before they’re flagged with our Income ESP Filter. You can see the full list of today’s Zacks #1 Rank stocks here.

Columbia Sportswear has an earnings ESP of +3.37% but a Zacks rank of #4 (sell).

Stocks with a favorable combination

Here are three companies you might want to consider, as our model shows that they have the right combination of elements to show a rhythm of profits:

Macy’s M currently has a +7.71% Earnings ESP and a #1 Zacks Rank. The company is expected to report improved results when it releases fourth quarter fiscal 2021 numbers. Zacks’ consensus estimate for quarterly earnings per share of $1.97 suggests substantial improvement from 80 cents reported in the quarter of the previous year.

Macy’s revenue is expected to grow year over year. Zacks’ consensus estimate for quarterly revenue is pegged at $8.44 billion, indicating a 24.5% improvement over the year-ago quarter. M has a surprise on earnings for the last four quarters of 313.5% on average.

Tapestry TPR currently has a +0.85% Earnings ESP and a #2 Zacks Rank. The company will likely see an increase in net income when it releases second-quarter fiscal 2022 numbers. Zacks’ consensus estimate for quarterly earnings per share of $1.18 suggests a 2.6 increase. % compared to the figure declared a year ago.

Tapestry’s revenue is expected to increase year by year. Zacks’ consensus estimate for quarterly revenue is pegged at $1.99 billion, suggesting a 17.8% improvement over the year-ago quarter. TPR has a four-quarter earnings surprise of 29%, on average.

Target TGT currently has a Gain ESP of +0.50% and Zacks Rank #3. The company is expected to report earnings growth when it reports fourth quarter fiscal 2021 results. Zacks’ consensus estimate for quarterly earnings per share of $2.85 suggests growth of 6.7% compared to the figure published a year ago.

Target’s revenue is expected to grow year over year. The revenue consensus mark is set at $31.53 billion, indicating an 11.3% increase over the prior year quarter. TGT has a surprise on earnings for the last four quarters of 19.7% on average.

Stay up to date with upcoming results announcements with the Zacks Earnings Schedule.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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