Analysts Estimate Dillard's (DDS) to Report a Decline in Earnings: What to Look Out for

Core Viewpoint - Dillard's (DDS) is anticipated to report a year-over-year decline in earnings due to lower revenues, with the consensus outlook indicating a potential impact on its near-term stock price [1][3]. Earnings Expectations - The upcoming earnings report is expected to show quarterly earnings of $6.43 per share, reflecting a year-over-year decrease of 16.8% [3]. - Revenues are projected to be $1.42 billion, which is a slight decline of 0.2% compared to the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised down by 0.42% over the last 30 days, indicating a reassessment by analysts [4]. - The Most Accurate Estimate for Dillard's is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +2.70%, suggesting a recent bullish sentiment among analysts [12]. Historical Performance - Dillard's has consistently beaten consensus EPS estimates, achieving this in the last four quarters [14]. - In the last reported quarter, Dillard's exceeded expectations by delivering earnings of $4.66 per share against an expected $3.79, resulting in a surprise of +22.96% [13]. Predictive Indicators - A positive Earnings ESP is a strong predictor of an earnings beat, especially when combined with a favorable Zacks Rank; however, Dillard's currently holds a Zacks Rank of 4, complicating predictions of an earnings beat [10][12]. - The predictive power of the Earnings ESP model is significant primarily for positive readings, indicating that a negative reading does not necessarily predict an earnings miss [9][11]. Conclusion - While Dillard's does not appear to be a compelling candidate for an earnings beat, investors should consider other factors influencing stock performance ahead of the earnings release [17].