Investors are stretching at the starting line waiting for athleisure brand Lululemon to report earnings after the market closes on Tuesday.
Analysts on average expect the company to report revenue of $2.7 billion and earnings of $4.26 per share for the quarter ended January 31. On earnings, Lululemon has beaten expectations for at least the past four consecutive quarters.
The Street opinion of Lululemon has trended higher in recent months thanks to this pattern of earnings surprises, according to Barchart. The stock also has a positive Zacks Earnings Expected Surprise Prediction (ESP).
“Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time,” a Barchart report said.
“In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.”
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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