Tecnoglass Q4 Earnings Beat Estimates, Revenues Rise 23% Y/Y

The Kroger Co. KR is likely to register decreases in the top and bottom lines when it reports fourth-quarter fiscal 2024 results on March 6. The Zacks Consensus Estimate for revenues is pegged at $34,594 million, indicating a decline of 6.7% from the prior-year reported figure.

The consensus mark for the bottom line has increased a penny in the past seven days and is pegged at $1.10. The consensus figure implies a decline of 17.9% from the prior-year quarter. The company delivered a trailing four-quarter earnings surprise of 6.8%, on average. In the last reported quarter, the bottom line was in line with the Zacks Consensus Estimate.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

The Kroger Co. Price, Consensus and EPS Surprise

The Kroger Co. price-consensus-eps-surprise-chart | The Kroger Co. Quote

Things to Know Before KR’s Q4 Earnings

Kroger continues to navigate a challenging operating environment, shaped by tightening consumer spending and stiff competition. Budget-conscious households remain under pressure due to multiyear inflation and higher interest rates, which might have impacted Kroger’s sales and customer behavior in the fourth quarter.

The company has been grappling with rising operating, general and administrative (OG&A) expenses. In the third quarter, the OG&A rate, excluding fuel and adjustment items, increased 22 basis points, caused by higher incentive plan expenses and the divestiture of Kroger Specialty Pharmacy. Any deleverage in OG&A could weigh on profitability.

The Zacks Consensus Estimate for total retail sales, excluding fuel, is pinned at $30,895 million, indicating a 7.3% year-over-year decline. Identical sales without fuel are predicted to grow 1.8%, which shows a deceleration from 2.3% increase registered in the preceding quarter. The consensus mark indicates supermarket fuel sales to fall 4.2% year over year to $3,323 million. Meanwhile, the consensus estimate for other sales is pegged at $293 million, up from $285 million in the prior year.

Despite challenges, Kroger’s customer segmentation strategy, emphasis on value-driven offerings and expansion of ‘Our Brands’ portfolio are likely to have helped it maintain a competitive position. The company remains committed to its core strengths, including a diverse fresh product selection, personalized shopping experiences and a seamless digital ecosystem. These strategic endeavors are likely to have played a key role in supporting Kroger’s performance in the fourth quarter.

What the Zacks Model Predicts for KR

Our proven model does not conclusively predict an earnings beat for Kroger 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. However, that is not the case here.

Kroger has a Zacks Rank #3 and an Earnings ESP of -0.20% at present. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Stocks With the Favorable Combination

Here are some stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.

DICK'S Sporting Goods, Inc. DKS currently has an Earnings ESP of +0.11% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

The company's top line is anticipated to have decreased year over year when it reports fourth-quarter fiscal 2024 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $3.8 billion, which indicates a 3.3% decrease from the figure reported in the year-ago quarter.

The company is expected to register a decline in the bottom line. The consensus estimate for DICK'S Sporting Goods’ fourth-quarter earnings is pegged at $3.47 per share, down 9.9% from the year-ago quarter. DKS delivered a trailing four-quarter earnings surprise of 11.4%, on average.

Costco Wholesale Corporation COST currently has an Earnings ESP of +0.14% and a Zacks Rank of 2. The company is likely to register growth in both top and bottom lines when it reports second-quarter fiscal 2025 numbers. The Zacks Consensus Estimate for Costco’s quarterly revenues is pegged at $63.2 billion, which indicates 8.2% growth from the prior-year quarter.

The Zacks Consensus Estimate for Costco’s quarterly earnings per share is pegged at $4.09, indicating a 10.2% increase from the year-ago period. COST delivered a trailing four-quarter earnings surprise of 2%, on average.

Five Below, Inc. FIVE has an Earnings ESP of +1.45% and a Zacks Rank of 3 at present. FIVE is likely to register top-line growth when it reports fourth-quarter fiscal 2024 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $1.4 billion, indicating 2.9% growth from the figure reported in the year-ago quarter.

The consensus estimate for Five Below’s fiscal fourth-quarter earnings is pegged at $3.35 per share, implying an 8.2% decline from the figure reported in the year-ago quarter. FIVE delivered delivered an average earnings surprise of 39% in the trailing four quarters.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

Bath & Body Works BBWI posted fourth-quarter fiscal 2024 results, wherein the top and bottom lines surpassed the Zacks Consensus Estimate. Revenues improved and earnings declined year over year.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

The company delivered better-than-expected performances, driven by product innovation, strong execution and an exceptional customer experience. Growth continues to be supported by innovation, enhanced marketing, technology investments, category expansion and international growth. Despite challenges in the retail sector, the company ended the year strong and remains optimistic about sustaining momentum in fiscal 2025.

Bath & Body Works, Inc. Price, Consensus and EPS Surprise

Bath & Body Works, Inc. price-consensus-eps-surprise-chart | Bath & Body Works, Inc. Quote

BBWI’s Quarterly Performance: Key Metrics & Insights

The company reported adjusted earnings of $2.09 per share in the fiscal fourth quarter and beat the Zacks Consensus Estimate of $2.04. Also, the figure increased 1.5% from adjusted earnings of $2.06 in the year-ago quarter.

Revenues decreased 4.3% year over year to $2,788 million and surpassed the Zacks Consensus Estimate of $2,772 million. Fiscal fourth-quarter revenues faced a headwind of approximately 500 basis points due to the shifted fiscal calendar, which included an extra week in 2023.

Revenues for Stores - U.S. and Canada declined 2.4% year over year to $2.11 billion, which surpassed the Zacks Consensus Estimate of $2.07 billion. Direct - U.S. and Canada revenues tumbled 9.4% to $595 million, missing the consensus estimate of $616.3 million. Also, International operations’ revenues declined 10.1% to $84 million, which came below the Zacks Consensus Estimate of $87.2 million.

Buy online pick up in store demand grew 45% year over year in the quarter, accounting for approximately 25% of total digital demand.

Sneak Peek Into BBWI’s Margins

The gross profit decreased 2.7% year over year to $1.30 billion. However, the gross margin expanded 80 basis points to 46.7% in the quarter under review, driven by cost savings, distribution productivity and the timing of certain costs. General, administrative and store operating expenses decreased 2.8% to $623 million.

Bath & Body Works reported an operating income of $678 million in fourth-quarter fiscal 2024, down 2.6% from the year-ago quarter. BBWI’s operating margin increased 40 basis points to 24.3% in the quarter.

Adjusted net income was $453 million, down 3.4% from $469 million in the year-ago quarter.

Bath & Body Works’ Store Update

The company ended the quarter with 1,895 stores, wherein it operated 1,782 stores in the United States and 113 in Canada. During 12 months of fiscal 2024, it opened 106 stores in total and closed 61.

BBWI Stock Past Six-Month Performance

BBWI’s Financial Health Snapshot

Bath & Body Works ended the quarter with cash and cash equivalents of $674 million, long-term debt of $3.88 billion, and long-term operating lease liabilities of $883 million. In fiscal 2024, the company provided $886 million in net cash for operating activities.

Bath & Body Works’ FY25 Outlook

For fiscal 2025, net sales growth is expected between 1% and 3%, with North American square footage expanding 2-3% and international net sales returning to growth.

The gross margin is projected at 44%, supported by cost discipline, while SG&A is expected to be 27%, including continued marketing investments at 3.5% of sales and increased technology spending. Net non-operating expenses are forecast at $255 million, reflecting lower interest expenses due to debt reduction in 2024.

Full-year earnings per share are projected to be $3.25-$3.60 versus the $3.61 reported in fiscal 2024. Adjusted earnings are expected to be $3.29 per share. In terms of capital allocation, the company plans to invest $250-$270 million in capital expenditure, primarily in real estate and technology, with some supply-chain projects shifting from 2024 to 2025.

The free cash flow is projected between $750 million and $850 million, including working capital improvements from the Fuel for Growth initiatives. The annual dividend is expected to be 80 cents per share, with $300 million in share repurchases planned for the year.

BBWI’s Q1 Guidance

For the first quarter of fiscal 2025, net sales growth is expected between 1% and 3%, with international retail sales increasing in the high-single digits and reported net sales growing in the double digits due to shipment timing. The gross margin is projected at 43.3%, implying a 50-basis-point decline due to a higher mix of international sales.

SG&A is expected to be 30.2%, in line with the prior year. Fiscal first-quarter net non-operating expenses are forecast at $65 million. Earnings per share for the fiscal first quarter are anticipated to be 36-43 cents, whereas it reported 38 cents in the first quarter of fiscal 2024.

Shares of this Zacks Rank #2 (Buy) company have gained 15.7% in the past six months compared with the industry’s growth of 3.3%.

Other Key Picks

We have highlighted three other top-ranked stocks, namely, Deckers Outdoor Corporation DECK, Ulta Beauty Inc. ULTA and Arhaus Inc. ARHS.

Deckers is a leading designer, producer and brand manager of innovative, niche footwear and accessories developed for outdoor sports and other lifestyle-related activities. It sports a Zacks Rank of 1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for DECK’s fiscal 2025 earnings and sales indicates growth of 21.2% and 15.6%, respectively, from the fiscal 2024 reported levels. Deckers has a trailing four-quarter average earnings surprise of 36.8%.

Ulta Beauty is a leading beauty retailer in the United States. It currently carries a Zacks Rank #2.

The consensus estimate for ULTA’s fiscal 2025 earnings and sales indicates a decline of 8.2% and an increase of 0.6%, respectively, from the fiscal 2024 reported levels. Ulta Beauty has a trailing four-quarter average earnings surprise of 6.2%.

Arhaus is a lifestyle brand and omni-channel retailer of premium home furnishings. The company offers an assortment of heirloom quality products. It currently has a Zacks Rank of 2.

The Zacks Consensus Estimate for ARHS’s current financial-year earnings and sales indicates growth of 12.5% and 8.4%, respectively, from the 2024 reported levels. Arhaus has a trailing four-quarter average earnings surprise of 119.3%.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

The Gap, Inc. GAP is expected to register top and bottom-line decline when it reports fourth-quarter fiscal 2024 results on March 6, after the closing bell. For revenues, the Zacks Consensus Estimate is pegged at $4.07 billion, indicating a 5.4% drop from the year-ago quarter’s figure.

The consensus estimate for the bottom line is pegged at 36 cents per share, indicating a 26.5% decline from the year-ago quarter’s figure. The consensus estimate for fourth-quarter fiscal earnings has been stable in the past 30 days.

The San Francisco, CA-based company has been reporting steady earnings outcomes, as evident from its bottom and top-line surprise trends in the trailing four quarters. GAP has a trailing four-quarter earnings surprise of 101.2%, on average. In the last reported quarter, the company’s earnings beat the Zacks Consensus Estimate by 28.6%.

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

Factors Likely to Impact Gap’s Q4 Results

Gap’s quarterly results are likely to reflect the adverse impacts of a volatile macroeconomic landscape, including inflationary pressures and other headwinds. Soft spending patterns on evolving consumer preferences and adverse foreign currency translations are likely to have been other deterrents. The company has been witnessing soft store sales for a while now. We anticipate store and franchise sales to decline 12.7% year over year.

In addition, tough comparisons and weather-related headwinds are likely to hurt results. These factors, coupled with any deleverage in operating and other expenses, are expected to hurt the company’s top and bottom-line results. We expect total revenues to decrease 3.1% year over year at Gap, 6% at Old Navy, 6.2% at Banana Republic and 6.5% at Athleta.

On the flip side, Gap has been smoothly progressing on the reinvigoration of its brands. Management has been committed to creating a trend-right merchandise assortment, deepening relations with customers via marketing, enhancing the digital commerce agenda and efficiently controlling expenses. Gains from these actions are expected to have somewhat offered a cushion to the company’s performance.

On its last reported quarter’s earnings call, management had anticipated the gross margin to be similar year over year for the fourth quarter of fiscal 2024. This excludes roughly one percentage point of deleveraged ROD from soft sales in the quarter, owing to the absence of the 53rd week.

What the Zacks Model Unveils for GAP

Our proven model predicts an earnings beat for Gap 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. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Gap currently has an Earnings ESP of +11.55% and a Zacks Rank of 2.

The Gap, Inc. Price and EPS Surprise

The Gap, Inc. price-eps-surprise | The Gap, Inc. Quote

Valuation Picture of GAP Stock

Gap stock is trading at an attractive valuation relative to the industry. Going by the price/earnings ratio, the stock is currently trading at 10.44 on a forward 12-month basis, lower than 18.32 of the industry. Also, it is trading lower than its median of 14.15.

The recent market movements show that Gap’s shares have lost 0.6% in the past six months against the industry's 3.3% growth.

Other Stocks With the Favorable Combination

Here are three more companies, which according to our model, have the right combination of elements to post an earnings beat this season:

Abercrombie & Fitch ANF currently has an Earnings ESP of +0.59% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

The company is likely to register growth in its top and bottom lines when it reports fourth-quarter fiscal 2024 results. The Zacks Consensus Estimate for quarterly revenues is pegged at $1.6 billion, which indicates an increase of 7.6% from the figure reported in the prior-year quarter.

The consensus estimate for ANF’s earnings per share is pegged at $3.49, indicating an increase of 17.5% from the year-ago quarter’s figure. The consensus mark for earnings has moved down 0.6% in the past seven days. ANF has delivered a trailing four-quarter earnings surprise of 14.8%, on average.

Ulta Beauty, Inc. ULTA has an Earnings ESP of +1.62% and a Zacks Rank of 2 at present. ULTA is likely to register a decline in its top and bottom lines when it reports fourth-quarter fiscal 2024 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $3.5 billion, which indicates a 2.6% drop from the figure reported in the year-ago quarter.

The consensus estimate for Ulta Beauty’s fourth-quarter earnings is pegged at $7.06 per share, indicating a 12.6% decline from the figure in the year-ago quarter. The consensus mark for earnings has moved down a penny in the past 30 days. ULTA has delivered an earnings beat of 6.2%, on average, in the trailing four quarters.

DICK'S Sporting Goods, Inc. DKS currently has an Earnings ESP of +0.98% and a Zacks Rank of 2. DKS is expected to report a decline in its top and bottom lines when it reports fourth-quarter fiscal 2024 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $3.75 billion, which indicates a 3.3% decrease from the figure in the year-ago quarter.

The consensus estimate for DICK'S fiscal fourth-quarter earnings is pegged at $3.47 per share, down 9.9% from the year-ago quarter. The consensus mark for earnings has moved up 0.6% in the past 30 days. DKS has delivered a trailing four-quarter earnings surprise of 11.4%, on average.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

Beauty stocks have shown remarkable resilience in a challenging market, outperforming many of their peers despite economic headwinds. Through innovation, strong brand loyalty, and targeted marketing, luxury and prestige brands in the beauty sector continue to capture market share.

Therefore, investors might consider adding three fundamentally stable beauty stocks, The Estée Lauder Companies Inc. , Ulta Beauty, Inc. , and Sally Beauty Holdings, Inc. , to their watchlists.

Emerging trends such as clean beauty, anti-aging solutions, and sustainable formulations are where beauty companies are mostly tapping in. The growing demand for sustainable, personalized, and scientifically-backed solutions drives brands to invest in advanced research and technology. This relentless focus on innovation attracts new customers and drives revenue.

Additionally, with the rise of smartphones and internet access, AI technology is emerging as a promising solution for diagnosing skin conditions. Advancements in AI technology focus on utilizing new techniques and incorporating more variables to detect fine lines, wrinkles, hydration levels, and sun damage and monitor skin conditions. The AI in the beauty and cosmetics market is set to be worth $4.4 billion in 2025. Also, the global cosmetics market is anticipated to reach $445.98 billion by 2030, growing at a CAGR of 6.1%.

Considering these conducive trends, let’s examine the fundamentals of the above-mentioned retail stocks in detail:

The Estée Lauder Companies Inc. (EL)

EL is a manufacturer, marketer, and seller of skincare, makeup, fragrance, and hair care products worldwide. It offers its products under the Estée Lauder, Clinique, Origins, M·A·C, Bobbi Brown Cosmetics, La Mer, Aveda, Jo Malone London, TOM FORD, Too Faced, Dr.Jart+, and The Ordinary brands.

On February 26, EL announced a collaboration with biotechnology company Serpin Pharma to deliver significant skincare ingredients to advance longevity benefits for consumers around the world. The collaboration will focus on how Serpin’s anti-inflammatory research will accelerate EL’s transformative product innovation. This partnership will bring novel technology and advance EL’s Transformative innovation agenda.

On January 29, EL collaborated with the Massachusetts Institute of Technology (MIT) and its laboratory, led by the renowned Dr. Robert Langer, to fuel ingredient innovation in the development of biodegradable materials for cosmetic applications and explore new solutions to combat the effects of visible light from the sun. This partnership aims further to forge EL’s leadership in green chemistry and innovation.

The stock’s trailing-12-month gross profit margin of 73.15% is 103.9% higher than the industry average of 35.87%. Similarly, its 12.49% trailing-12-month levered FCF margin is 99.8% above the industry average of 6.25%.

In the fiscal second quarter that ended on December 31, 2024, EL’s net sales amounted to $4.00 billion. Its adjusted operating income for the quarter came in at $462 million, while its adjusted earnings per share stood at $0.62.

Analysts expect EL’s revenue for the fiscal year (ending June 2025) to be $14.44 billion and its EPS to $1.38. For the fiscal year 2026, its revenue is expected to increase 2.6% year-over-year to $14.82 billion, while its EPS is forecasted to settle at $2.35, indicating a 70.7% improvement over the prior year.

Over the past three months, the stock has surged marginally, closing the last trading session at $73.28.

EL’s stance is apparent in its POWR Ratings. The stock has a B grade for Quality. The POWR Ratings are calculated by considering 118 different factors, each weighted to an optimal degree.

Among the 59 stocks in the B-rated Fashion & Luxury industry, it is ranked #52. Click here to see the additional EL ratings (Growth, Value, Momentum, Stability, and Sentiment).

Ulta Beauty, Inc. (ULTA)

ULTA operates as a specialty beauty retailer offering branded and private label beauty products, including cosmetics, fragrance, haircare, skincare, bath, and body products, through its Ulta Beauty stores, shop-in-shops, website, and mobile applications.

In terms of the trailing-12-month net income margin, ULTA’s 10.58% is 151.2% higher than the 4.21% industry average. Similarly, its 20.18% trailing-12-month ROTA is 425.7% higher than the industry average of 3.84%. Also, its trailing-12-month ROCE of 55.18% compares to the industry average of 11.48%.

ULTA’s net sales for the fiscal third quarter that ended on November 2, 2024, increased marginally year-over-year, amounting to $2.53 billion. Its gross profit amounted to $1.01 million, increasing 1.4% year-over-year. In addition, the company’s net income amounted to $242.18 million. Also, its net income per share came in at $5.14, representing a marginal increase from the last year.

Street expects ULTA’s EPS for the fiscal first quarter (ending April 2025) to decline marginally year-over-year to $6.22. Its revenue for the same period is expected to register a 3.2% growth from the prior year, settling at $2.81 billion. In addition, it surpassed the consensus revenue and EPS estimates in three of the trailing four quarters, which is promising.

ULTA shares have surged marginally over the past three months to close the last trading session at $366.73.

ULTA’s fundamentals are reflected in its POWR Ratings. It is ranked #29 out of 37 stocks in the B-rated Specialty Retailers industry.

Beyond what is stated above, we’ve also rated ULTA for Growth, Value, Momentum, Stability, Sentiment, and Quality. Get all ULTA’s ratings here.

Sally Beauty Holdings, Inc. (SBH)

SBH operates as an international specialty retailer and distributor of professional beauty supplies. The company operates through two segments: Sally Beauty Supply and Beauty Systems Group.

On February 6, SBH’s segment Beauty Systems Group signed a distribution agreement with K18, one of the most admired hair care brands in the professional channel. The partnership will launch on April 1, 2025, in all Beauty Systems Group stores in the United States and Canada, including the e-commerce channel. This partnership with a high-efficacy brand should boost sales and customer growth.

SBH's trailing-12-month ROCE and ROTA of 29.39% and 6.49% are 156.1% and 69.2% higher than their respective industry averages of 11.48% and 3.84%. Likewise, its trailing-12-month asset turnover ratio of 1.37x is 37% above the industry average of 1.00x.

During the fiscal first quarter that ended on December 31, 2024, SBH’s net sales increased marginally year-over-year, amounting to $937.89 million. Its gross profit amounted to $476.84 million, increasing 2.1% year-over-year.

Its operating earnings improved by 45.1% from the prior year’s value to $100.32 million. In addition, the company’s non-GAAP net earnings rose 6.9% from the year-ago value to $44.85 million, while its EPS stood at $0.43, up 10.3% year-over-year.

The consensus revenue estimate of $3.72 billion for the fiscal year 2025 (ending September 2025) remains stagnant year-over-year. The consensus EPS estimate of $1.83 for the ongoing quarter indicates an 8.1% improvement year-over-year.

The stock has declined 4.2% intraday to close the last trading session at $9.18.

SBH’s bright prospects are reflected in its POWR Ratings. The stock has an overall rating of B, which translates to a Buy in our proprietary rating system.

It also has an A grade for Value and a B for Growth and Quality. Within the same Specialty Retailers industry, it is ranked #8 out of 37 stocks. Click here to see SBH’s ratings for Momentum, Stability, and Sentiment.

What To Do Next?

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EL shares were trading at $73.32 per share on Thursday afternoon, up $0.04 (+0.05%). Year-to-date, EL has declined -2.21%, versus a 0.03% rise in the benchmark S&P 500 index during the same period.

(Updates with latest stock movement in the headline and first paragraph.)

Tecnoglass shares were up more than 10% in recent Thursday trading after the company beat Q4 consensus estimates for net income and revenue.

The company reported Q4 adjusted net income Thursday of $1.05 per diluted share, up from $0.80 per share a year earlier.

Four analysts polled by FactSet expected $1.02 per share.

Operating revenue for the quarter ended Dec. 31 was $239.6 million up from $194.6 million a year earlier.

Four analysts surveyed by FactSet expected $239.4 million.

The company said it expects full-year 2025 revenue of $940 million to $1.02 billion. Four analysts surveyed by FactSet expect $977.2 million.