Chico’s FAS, Inc. (CHS) is expected to experience a decline in its second-quarter fiscal 2023 results, both in terms of revenue and earnings. The company is set to release its earnings report on Aug 29. Analysts predict earnings of 27 cents per share, a decrease of over 20% compared to the same quarter last year. Consensus estimates have remained steady over the past month.
Over the past four quarters, Chico’s FAS has delivered an average earnings surprise of 34.7%. The projected revenue for the quarter is $555 million, a decrease of 0.7% from the previous year.
Factors to Consider
Chico’s FAS may face challenges due to the current macroeconomic environment, including inflationary pressures and fluctuations in foreign currency exchange rates. Additionally, any increase in selling, general, and administrative expenses could impact the company’s performance negatively.
However, Chico’s FAS remains focused on cost management and growth initiatives. The company has seen positive reception for its brands, attributed to product and marketing improvements, which may provide some cushion to its quarterly performance.
Insights from Zacks Model
According to the Zacks model, Chico’s FAS is not expected to exceed earnings projections this quarter. A combination of positive earnings expectations and a favorable Zacks Rank usually indicates a higher likelihood of beating estimates. However, this is not the case for Chico’s FAS.
For investors looking at potential earning beats, American Eagle Outfitters (AEO), Five Below (FIVE), and Casey’s General Stores (CASY) are worth considering. These companies have a favorable combination of factors according to the Zacks model.
Download FREE: How To Profit From Trillions On Spending For Infrastructure >>
Stay informed with the Zacks Earnings Calendar.
Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect those of Nasdaq, Inc.