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Finish Line (FINL) Q2 Earnings: Stock to Post a Beat Again?


We expect leading mall-based specialty retailer, Finish Line Inc. FINL to beat expectations when it reports second-quarter fiscal 2017 results on Sep 23. Last quarter, the company had delivered a positive earnings surprise of 4.6%, which marked its second consecutive beat.

FINISH LINE-CLA Price and EPS Surprise


Why a Likely Positive Surprise?

Our proven model shows that Finish Line is likely to beat earnings estimates this quarter. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1, 2 or 3 for this to happen. The Most Accurate estimate is 54 cents and the Zacks Consensus Estimate is pegged at 53 cents. So the ensuing +1.89% ESP and the company’s Zacks Rank #3 (Hold) make us reasonably confident of an earnings beat.

What is Driving the Better-than-Expected Earnings?

Management remained impressed with its performance in the last quarter – wherein despite a tough retail scenario, the company managed to top earnings and sales estimates, following which it retained its fiscal 2017 earnings and comparable store sales (comps) guidance. Coming to the second quarter, some analysts anticipate comps to witness a sequential improvement, gaining from the improved trends witnessed in the sneaker industry, backed by various product launches. Moreover, Finish Line’s second-quarter performance is expected to benefit from the Rio Summer Olympics that took place during the quarter.

These factors, along with the company’s progress with regard to supply-chain optimization and overall business execution bode well, thus making us reasonably confident about the upcoming results.

Stocks to Consider

Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:

Coca-Cola European Partners Plc CCE has an Earnings ESP of +4.11% and a Zacks Rank #3.

Carnival Corp. CCL has an Earnings ESP of +2.13% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Fastenal Company FAST has an Earnings ESP of +2.22% and a Zacks Rank #3.

See our video article on Finish Line's expected Q2 earnings here.

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