Shoe Carnival is expected to release its first quarter earnings report after close of trading on May 19th
Schuh Carnival, Inc. (NASDAQ: SCVL) is an American shoe retailer. The company operates 383 stores in approximately 30 states in the Midwest, South, and Southeast of the United States Shoe Carnival, and primarily sells men’s, women’s, children’s, and athletic shoes through its retail stores. SCVL stores also sell accessories such as handbags, wallets, shoe care items, and socks. The company offers both branded and private label goods.
Last week Shoe Carnival announced that it would release its first quarter results after the market closed on Wednesday May 19th. SCVL will also host a quarterly conference call to discuss first quarter results on the same day.
Shoe Carnival has managed to beat earnings expectations in three of the last four earnings reports published. For the first quarter of 2020, SCVL missed analyst estimates by a margin of $ 0.53 and reported a loss of $ 1.16 per share. For the second quarter of 2020, earnings per share (EPS) of Shoe Carnival’s stock rose back into positive territory to $ 0.71, beating expectations with a margin of $ 0.10. For the third quarter of 2020, SCVL posted another surge in earnings, rising to $ 1.03 per share, well beating estimates by $ 0.33. For the final quarter of 2020, Shoe Carnival reported earnings per share of $ 0.52, beating expectations with a margin of $ 0.01. Analysts forecast earnings per share of USD 1.40 for the first quarter tomorrow.
SCVL is up about 163% over the past 12 months with continued support for the 60-day moving average. In addition, the security hit its record high May 10 of $ 66.28 within striking distance today. The company also offers a forward dividend of $ 0.56, which translates to a dividend yield of 0.85%.
From a fundamental standpoint, the shoe carnival inventory can be viewed as a decent game of values. The company still has a small market cap of $ 932 million, making it easy for SCVL to appreciate. The shoe carnival saw constant growth prior to 2020 when the Covid-19 pandemic hit. Between 2018 and 2019, SCVL increased sales by a modest 1.7%. During the same period, the company also increased its net income by a whopping 127%. SCVL sales decreased by around 6% in 2020. Additionally, the company’s net income was hurt even more in 2020, declining 63% year over year. As a result, Shoe Carnival stock traded at a very high price-earnings-ratio of 58.71. However, SCVL’s price-to-earnings ratio of 15.77 is a much better indicator of the stock’s intrinsic value.