Regis (RGS), delivered unexpected earnings and revenue surprises at -825.00%, 7.17% and respectively for the three months ended June 2021. Are the numbers telling us something?
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This story originally appeared on Zacks
Regis (RGS), which posted a quarter-end loss of $0.74 per shares, was lower than the Zacks Consensus Estimate loss of $0.08. This is compared to a loss of $1.01 for the same quarter a year earlier. These numbers are adjusted to account for non-recurring expenses.
The earnings surprise for this quarter is -825%. It was predicted that the owner of Supercuts and MasterCuts hair salon chain chains would report a loss per share of $0.02, but it produced a surprise loss of $0.70.
The company’s EPS forecasts have not exceeded consensus over the past four quarters.
Regis is part of the Zacks Retail-Miscellaneous sector. It posted revenue revenues $99.13 millions for the quarter ending June 2021. This was higher than the Zacks Consensus Estimate (7.17%). This is compared to the $60.14million revenues year ago. Over the past four quarters, only once has the company surpassed consensus revenue estimates.
Based on recently released numbers, the sustainability of the stock’s price movement and future earnings outlook will largely depend on management’s comments on the earnings conference.
Regis shares lost 23.5% over the past year, compared to the 19.4% gain by the S&P 500.
Next Steps for Regis
Regis’ performance has been below the market this year. Investors are asking: What’s the next step for Regis?
Although there aren’t easy answers, investors can use the earnings outlook to help them make informed decisions. This includes current expectations of earnings for the next quarter, as well as how they have changed in recent months.
Research shows that there is a strong relationship between stock movement and earnings revision trends. These revisions can be tracked by investors or they can rely on a proven rating tool such as the Zacks Rank. This has a strong track record in harnessing earnings estimate revisions’ power.
The trend in estimate revisions for Regis before this earnings report was mixed. The company just released its earnings report and the direction of the estimate revisions may change, but the current Zacks rank for Regis is #3 (Hold). The shares should perform well in the future. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
We will see how the estimates for the next quarters and the current fiscal year evolve in the days to come. Current consensus EPS estimates are -$0.21 for $72.6million in revenue for the next quarter, and -$0.60 for $298.1million in revenues in the current fiscal year.
The outlook for an industry’s performance can also have a significant impact on the stock’s performance. Investors need to be aware of this fact. The Zacks Industry Rank currently ranks Retail – Miscellaneous in the top 23% among the 250+ Zacks Industries. Research shows that the Zacks top 50 percent outperforms the bottom half by more than two to one.
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Publiated at Thu 26 August 2021, 02:27:18 (+0000).