Investors keen on tracking stocks poised for continued success in earnings reports might want to keep an eye on Lululemon (LULU), a prominent player in the Zacks Textile – Apparel industry. This athletic apparel manufacturer has carved out a commendable record of surpassing earnings estimates, particularly demonstrated through its last two quarterly performances.
Lululemon’s recent earnings report showcased earnings of $3.1 per share, a notable increase from the expected $2.84, resulting in a surprise of 9.15%. In the preceding quarter, the company also exceeded expectations, reporting earnings of $2.6 per share against a consensus estimate of $2.59, which corresponds to a surprise of 0.39%. Such consistent outperformance highlights Lululemon’s essential position in the market.
This positive trend has led to upward revisions in earnings estimates for the company. Notably, the Zacks Earnings ESP (Expected Surprise Prediction) for Lululemon currently exhibits a positive outlook, providing a strong indicator of potential earnings beats ahead. This is further bolstered by the company’s solid Zacks Rank. Research indicates that stocks characterized by both a positive Earnings ESP and a Zacks Rank of #3 (Hold) or better yield a positive surprise nearly 70% of the time. This suggests that, among ten stocks with such traits, as many as seven could exceed consensus estimates.
The Zacks Earnings ESP metric assesses the Most Accurate Estimate against the Zacks Consensus Estimate for a given quarter, with the Most Accurate Estimate reflecting recent analyst revisions. This method is grounded in the principle that updates from analysts just before an earnings announcement are likely to possess the most relevant information, potentially offering a more accurate forecast than earlier estimates.
At present, Lululemon’s Earnings ESP stands at +0.49%, signaling a burgeoning confidence among analysts in the company’s near-term earnings outlook. Coupled with a Zacks Rank of #3, these indicators suggest that another earnings beat may be on the horizon. The upcoming earnings report from Lululemon is anticipated on December 11, 2025.
It is also pertinent for investors to recognize that a negative Earnings ESP could diminish the predictive efficacy of this metric. However, a negative value does not conclusively indicate an impending earnings miss. There are instances where companies outperform the consensus EPS estimates, yet this alone may not dictate substantial upward movement in stock prices. Conversely, some stocks may maintain their valuation even after falling short of consensus estimates, underscoring the complexities of the market.
