Unifi (UFI) got here out with quarterly earnings of $0.18 per share, beating the Zacks Consensus Es
Unifi (UFI) got here out with quarterly earnings of $0.18 per share, beating the Zacks Consensus Estimate of a lack of $0.38 per share. This compares to earnings of $0.20 per share a yr in the past. These figures are adjusted for non-recurring objects.
This quarterly report represents an earnings shock of 147.37%. 1 / 4 in the past, it was anticipated that this polyester and nylon yarn maker would put up a lack of $0.24 per share when it really produced a lack of $1.05, delivering a shock of -337.50%.
During the last 4 quarters, the corporate has surpassed consensus EPS estimates two instances.
Unifi, which belongs to the Zacks Textile – Merchandise trade, posted revenues of $141.51 million for the quarter ended September 2020, surpassing the Zacks Consensus Estimate by 9.78%. This compares to year-ago revenues of $179.95 million. The corporate has topped consensus income estimates two instances over the past 4 quarters.
The sustainability of the inventory’s speedy value motion based mostly on the recently-released numbers and future earnings expectations will principally rely upon administration’s commentary on the earnings name.
Unifi shares have misplaced about 47.4% for the reason that starting of the yr versus the S&P 500’s acquire of seven.3%.
What’s Subsequent for Unifi?
Whereas Unifi has underperformed the market to this point this yr, the query that involves buyers’ minds is: what’s subsequent for the inventory?
There aren’t any simple solutions to this key query, however one dependable measure that may assist buyers tackle that is the corporate’s earnings outlook. Not solely does this embody present consensus earnings expectations for the approaching quarter(s), but in addition how these expectations have modified these days.
Empirical analysis exhibits a robust correlation between near-term inventory actions and developments in earnings estimate revisions. Traders can observe such revisions by themselves or depend on a tried-and-tested score device just like the Zacks Rank, which has a powerful observe document of harnessing the facility of earnings estimate revisions.
Forward of this earnings launch, the estimate revisions development for Unifi was unfavorable. Whereas the magnitude and course of estimate revisions may change following the corporate’s just-released earnings report, the present standing interprets right into a Zacks Rank #4 (Promote) for the inventory. So, the shares are anticipated to underperform the market within the close to future. You possibly can see the entire listing of as we speak’s Zacks #1 Rank (Sturdy Purchase) shares right here.
Will probably be attention-grabbing to see how estimates for the approaching quarters and present fiscal yr change within the days forward. The present consensus EPS estimate is -$0.17 on $145.20 million in revenues for the approaching quarter and -$0.43 on $602.80 million in revenues for the present fiscal yr.
Traders ought to be conscious of the truth that the outlook for the trade can have a cloth affect on the efficiency of the inventory as properly. When it comes to the Zacks Business Rank, Textile – Merchandise is at the moment within the backside 6% of the 250 plus Zacks industries. Our analysis exhibits that the highest 50% of the Zacks-ranked industries outperform the underside 50% by an element of greater than 2 to 1.
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Unifi, Inc. (UFI): Free Inventory Evaluation Report
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