Arhaus, Inc. (ARHS) Expected to Beat Earnings Estimates: Should You Buy?

Core Viewpoint - Arhaus, Inc. (ARHS) is anticipated to report a year-over-year decline in earnings due to lower revenues, with the earnings report expected on March 7, 2024, potentially impacting stock price based on actual results compared to estimates [1][2]. Group 1: Earnings Estimates - The consensus estimate for quarterly earnings is $0.17 per share, reflecting a 50% decrease year-over-year [2]. - Revenues are projected to be $336.73 million, which is a 5.5% decline from the same quarter last year [2]. Group 2: Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating stability in analysts' assessments [3]. - The Most Accurate Estimate for Arhaus is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +8.62%, suggesting a bullish outlook from analysts [6]. Group 3: Earnings Surprise Prediction - A positive Earnings ESP is a strong indicator of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [5]. - Arhaus has a Zacks Rank of 3, indicating a likelihood of beating the consensus EPS estimate [6]. Group 4: Historical Performance - In the last reported quarter, Arhaus was expected to post earnings of $0.11 per share but exceeded expectations with earnings of $0.14, resulting in a surprise of +27.27% [7]. - The company has successfully beaten consensus EPS estimates in the last four quarters [7]. Group 5: Market Reaction Considerations - An earnings beat or miss may not solely dictate stock movement, as other factors can influence investor sentiment [8]. - Despite the potential for an earnings beat, it is essential to consider additional factors before making investment decisions regarding Arhaus [8].