Core Viewpoint - Abercrombie & Fitch is anticipated to report a year-over-year decline in earnings despite an increase in revenues, which could significantly influence its stock price in the near term [1][2]. Earnings Expectations - The upcoming earnings report is expected to be released on May 28, 2025, with a consensus estimate of 1.07 billion, indicating a 5.3% increase compared to the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised down by 0.22% over the last 30 days, suggesting a collective reassessment by analysts regarding the company's earnings outlook [4]. - The Most Accurate Estimate is lower than the Zacks Consensus Estimate, leading to an Earnings ESP of -4.22%, indicating a bearish sentiment among analysts [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive or negative reading can predict the likelihood of actual earnings deviating from consensus estimates, with a strong predictive power for positive readings [7][8]. - Stocks with a positive Earnings ESP and a Zacks Rank of 1, 2, or 3 have historically shown a nearly 70% chance of delivering a positive surprise [8]. Historical Performance - In the last reported quarter, Abercrombie exceeded the expected earnings of 3.57, resulting in a surprise of +2.59% [12]. - Over the past four quarters, the company has consistently beaten consensus EPS estimates [13]. Conclusion - Despite the potential for an earnings beat, various factors can influence stock movement, and the current indicators suggest that Abercrombie may not be a strong candidate for an earnings surprise [14][16].
Earnings Preview: Abercrombie & Fitch (ANF) Q1 Earnings Expected to Decline