Earnings Preview: Bath & Body Works (BBWI) Q3 Earnings Expected to Decline

Core Viewpoint - Wall Street anticipates a year-over-year decline in earnings for Bath & Body Works despite an increase in revenues, with the actual results being crucial for stock price movement [1][2]. Earnings Expectations - Bath & Body Works is expected to report quarterly earnings of $0.40 per share, reflecting an 18.4% decrease year-over-year, while revenues are projected to be $1.63 billion, a 1.2% increase from the previous year [3]. Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating that analysts have not significantly altered their initial projections [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model shows a positive Earnings ESP of +1.26% for Bath & Body Works, suggesting recent bullish sentiment among analysts, although the stock holds a Zacks Rank of 4, complicating predictions of an earnings beat [12]. Historical Performance - In the last reported quarter, Bath & Body Works met the expected earnings of $0.37 per share, resulting in no surprise, and has beaten consensus EPS estimates three times over the last four quarters [13][14]. Market Reaction Factors - The stock's movement may not solely depend on earnings results, as other factors can influence investor sentiment, leading to potential gains or losses regardless of earnings performance [15][17].