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Wolverine World Wide, Inc. (NYSE:WWW), one of the leading designers, manufacturers and marketers of branded footwear and apparel, is scheduled to report its third-quarter 2011 financial results before the bell on Monday, October 3, 2011. The current Zacks Consensus Estimate for the quarter is 75 cents a share. For the quarter under review, revenue is $357 million, according to the Zacks Consensus Estimate.

Second-Quarter 2011, a Synopsis

On July 12, 2011, Wolverine reported second-quarter 2011 results that topped the Zacks Consensus Estimate on the heels of double-digit growth across its brands.

The quarterly earnings of 48 cents a share outpaced the Zacks Consensus Estimate of 46 cents and grew 23.1% from 39 cents earned in the prior-year quarter. Wolverine, which sells its products under the brands Harley-Davidson Footwear, Hush Puppies, Merrell, and others, said its total revenue for the quarter climbed 20.1% to $310.1 million from the prior-year quarter, and handily beat the Zacks Consensus Estimate of $294 million.

Guidance

The company reiterated its outlook for fiscal 2011 on the back of better-than-expected results. Wolverine projected total revenue in the range of $1,380 million to $1,420 million, reflecting year-over-year growth of 10.5% to 13.7%. Earnings are expected between $2.40 and $2.50 per share, representing a growth of 10.6%-15.2% from the prior year.

Third-Quarter 2011 Consensus

Analysts polled by Zacks, expect Wolverine to post third-quarter 2011 earnings of 75 cents a share. The current Zacks Consensus Estimate represents a year-over-year growth of 7.1%. The current Zacks Consensus Estimate for the quarter range from a low of 73 cents to a high of 79 cents.

Zacks Agreement & Magnitude

Of the 9 analysts following the stock, none of them revised their estimates either upwards or downwards in the last 30 and 7 days, thereby keeping the Zacks Consensus Estimate constant at 75 cents.

Positive Earnings Surprise History

With respect to earnings surprises, Wolverine has topped the Zacks Consensus Estimate over the last four quarters in the range of 4.4% to 13.0%. The average remained at 7.7%. This suggests that Wolverine has beaten the Zacks Consensus Estimate by an average of 7.7% in the trailing four quarters. Given the past performance we expect the company to outperform the Zacks Consensus Estimate.

Wolverine Holds Zacks #3 Rank

Rockford, Michigan-based Wolverine enjoyed increased momentum in fiscal 2010 that continues into fiscal 2011. Moreover, we believe that the company remains well positioned to increase its market share on the strength of its brand portfolio. The Merrell brand has been the key growth driver for the past decade, and we expect it to catalyze future growth. The company’s multi-brand portfolio, geographical diversification, and multi-distribution channel strategy remain its key growth drivers.

However, given the current global macroeconomic environment and intense competition from Timberland Co. (NYSE:TBL), Deckers Outdoor Corporation (NYSE:DECK) and Skechers USA Inc. (NYSE:SKX), we prefer to have a short-term “Hold” recommendation on the stock, which is well defined by our Zacks #3 Rank.

Disclosure / Disclaimer Link

Source: Wolverine World Wide Earnings Preview