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Johnson Outdoors Inc. JOUT is scheduled to report first-quarter fiscal 2025 results on Feb. 3, before market open. In the last reported quarter, the company’s earnings missed the Zacks Consensus Estimate by 241.8%.

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

Trend in JOUT’s Estimate Revision

The Zacks Consensus Estimate for the to be reported quarter’s loss per share have widened to $1.30 from a loss of $1.27 in the past 30 days. In the year ago quarter, the company reported adjusted earnings per share of 38 cents.

The consensus mark for revenues is pegged at $104.7 million, indicating a 24.5% decline from the year-ago reported figure of $138.6 million.

Key Factors to Note Ahead of JOUT’s Q1 Results

Johnson Outdoors’ fiscal first-quarter results are likely to be hurt by challenging market conditions for outdoor recreation products. Increased competition in the industry has forced the company to adjust its strategy and pricing.

The company's bottom line is likely to have been affected by deferred compensation expenses. Elevated warranty expenses and professional services costs are concerns as well. Margins in the quarter to be reported are likely to have been negatively affected by promotional pricing, an unfavorable product mix and increased inventory reserves.

However, the company has been enhancing its product development strategy by allocating more resources to consumer insights and key talent. Efficiency improvements in manufacturing, logistics and sourcing bode well. These efforts are likely to have aided the company’s performance.

What the Zacks Model Unveils About JOUT

Our proven model does not conclusively predict an earnings beat for Johnson Outdoors this time. That is because a stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. This is not the case here, as elaborated below.

Earnings ESP of JOUT: The company has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

JOUT’s Zacks Rank: JOUT carries a Zacks Rank #4 (Sell).

Johnson Outdoors Inc. Price and EPS Surprise

Johnson Outdoors Inc. price-eps-surprise | Johnson Outdoors Inc. Quote

Stocks Poised to Beat on Earnings

Here are some stocks from the Zacks Consumer Discretionary sector that investors may consider, as our model shows that these have the right combination of elements to post an earnings beat:

Life Time Group Holdings, Inc. LTH has an Earnings ESP of +14.29% and sports a Zacks Rank of 1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

LTH is expected to register a 5.3% increase in earnings in the to-be-reported quarter. It reported earnings beat in three of the trailing four quarters and missed on one occasion, with an average surprise of 46.2%.

Trip.com Group Limited TCOM currently has an Earnings ESP of +0.97% and flaunts a Zacks Rank of 1.

TCOM reported earnings beat in each of the trailing four quarters, with an average surprise of 42.8%. Its earnings for the to-be-reported quarter are expected to decrease 7.1%.

Rush Street Interactive, Inc. RSI currently has an Earnings ESP of +22.22% and sports a Zacks Rank of 1.

RSI’s earnings for the to-be-reported quarter are expected to increase 800%. It reported earnings beat in each of the trailing four quarters, the average surprise being 225%.

Zacks Investment Research

Mattel, Inc. MAT is scheduled to report fourth-quarter 2024 results on Feb. 4, after the closing bell. In the last reported quarter, the company’s earnings surpassed the Zacks Consensus Estimate by 21.3%.

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

Trend in MAT’s Estimate Revision

For the quarter to be reported, the Zacks Consensus Estimate for earnings is pegged at 24 cents per share, down 17.2% year over year. In the past seven days, earnings estimates for the quarter have been revised upward by 1 cent per share.

For revenues, the consensus mark is pegged at nearly $1.68 billion. The metric indicates a gain of 3.4% from the year-ago figure.

Let us discuss the factors that are likely to be reflected in the quarter to be reported.

Factors to Note Ahead of MAT’s Q4 Release

Mattel's fourth-quarter 2024 top line is likely to have been aided by strong demand for Hot Wheels. This and initiatives toward capturing the full value of MAT’s IPs and transforming itself into a high-performing toy company bode well.

Contributions from the IP-driven toy business, innovations across the toy portfolio and the expansion of entertainment offerings are tailwinds. Also, the focus on demand creation (in collaboration with retail partners) and licensing partnerships are likely to have aided the company’s performance in the to-be-reported quarter.

The Zacks Consensus Estimate for Worldwide gross billings by the top three Power Brands, Barbie, Fisher-Price and Hot Wheels is pegged at $419 million, $250 million and $467, respectively, down 11.4%, up 2% and 11.7% year over year.

On the other hand, the company’s bottom line is likely to have been hurt by higher input cost inflation, unfavorable fixed cost absorption and other supply-chain costs. Also, higher severance and restructuring expenses, incentive compensation and pay increases are likely to have negatively impacted the bottom line.

What Our Model Predicts About MAT

Our proven model does not conclusively predict an earnings beat for Mattel this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here.

MAT’s Earnings ESP: Mattel currently has an Earnings ESP of -11.02%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

MAT’s Zacks Rank: Mattel has a Zacks Rank #3 at present.

Mattel, Inc. Price and EPS Surprise

Mattel, Inc. price-eps-surprise | Mattel, Inc. Quote

Stocks Poised to Beat Earnings Estimates

Here are some stocks you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season.

Life Time Group Holdings, Inc. LTH has an Earnings ESP of +14.29% and a Zacks Rank of 1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

LTH is expected to register a 5.3% increase in earnings for the to-be-reported quarter. It reported earnings beat in three of the trailing four quarters and missed on one occasion, with an average surprise of 46.2%.

Trip.com Group Limited TCOM currently has an Earnings ESP of +0.97% and a Zacks Rank of 1.

TCOM reported earnings beat in each of the trailing four quarters, with an average surprise of 42.8%. Its earnings for the to-be-reported quarter are expected to decrease 7.1%.

Rush Street Interactive, Inc. RSI currently has an Earnings ESP of +22.22% and a Zacks Rank of 1.

RSI’s earnings for the to-be-reported quarter are expected to increase 800%. It reported earnings beat in each of the trailing four quarters, the average surprise being 225%.

Zacks Investment Research