Bath & Body Works(BBWI) ZACKS·2025-02-20 16:05Core Viewpoint - Bath & Body Works (BBWI) is anticipated to report a year-over-year decline in earnings due to lower revenues for the quarter ended January 2025, with the consensus outlook indicating potential impacts on its near-term stock price [1][2]. Earnings Expectations - The upcoming earnings report is scheduled for February 27, 2025, with expectations of quarterly earnings at 2.77 billion, down 4.8% from the previous year [3][2]. Estimate Revisions - The consensus EPS estimate has been revised 0.74% higher in the last 30 days, indicating a collective reassessment by analysts [4]. - The Most Accurate Estimate for Bath & Body Works is higher than the Zacks Consensus Estimate, resulting in a positive Earnings ESP of +1.72%, suggesting a bullish outlook on the company's earnings prospects [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive reading is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1 (Strong Buy), 2 (Buy), or 3 (Hold) [8]. - Bath & Body Works currently holds a Zacks Rank of 2, enhancing the likelihood of beating the consensus EPS estimate [11]. Historical Performance - In the last reported quarter, Bath & Body Works exceeded the expected earnings of 0.49, resulting in a surprise of +6.52% [12]. - The company has successfully beaten consensus EPS estimates in the last four quarters [13]. Conclusion - While an earnings beat may not solely dictate stock movement, the combination of a positive Earnings ESP and a favorable Zacks Rank increases the odds of success for investors [14][15]. - Bath & Body Works is positioned as a compelling earnings-beat candidate, but investors should consider other influencing factors as well [16].