Kohl's Corporation (KSS Quick Quote – ) is likely to report revenue growth on March 1. The Zacks Consensus Estimate for quarterly revenue is $6,782 million, up 10.3%-quarter-over-quarter from the previously reported figure.

The Zacks Consensus Estimate for Kohl's quarterly earnings has fallen 3 cents in the last 7 days to $2.10 per share. The forecast represents a 5.4% decline from the $2.22-per-share earnings reported in the same period last year.

The branded apparel, footwear, accessories, beauty and home furnishings retailer's profit surpassed the Zacks Consensus Estimate by 139.1% in the last quarter.

Key factors to keep in mind

Kohl's has benefited from its strategic framework, which focuses on four key areas such as driving revenue growth, expanding operating margins, implementing disciplined capital management and promoting a culture of flexibility, accountability and inclusion. KSS's strategic efforts to consolidate its omnichannel business have contributed to its performance. In this regard, KSS is to be commended for its online purchase, in-store pickup, online purchase delivery to store, curbside pickup and Amazon return initiatives. In addition, KSS's solid brand portfolio and partnerships are growing significantly. These factors are likely to have boosted revenue performance in the quarter to be reported.

On the last quarterly earnings call, management expects fourth quarter sales to grow in the low double-digit percentage range for fiscal 2020 with an operating margin of 6.6 percent, which represents a 140 basis point level of growth over the prior year. For fiscal 2021, management expects net sales growth to be in the mid-20s range of percentages. It forecasts operating margins of 8.4-8.5 percent and adjusted earnings per share of $7.10-$7.30 for the full fiscal year mentioned above.

Kohl's, on the other hand, has been battling supply chain headwinds and has increased SG&A costs. KSS's stores and distribution centers are facing higher wage pressures. It is also grappling with higher transportation costs and freight pressures. These headwinds could impact profitability in the quarter. Guidance for the fourth fiscal quarter includes headwinds that are more than 350 basis points higher than the same period in 2019. This includes increased digital penetration, freight and holiday surcharges, and higher wages and incentives.

What the Zacks Model Reveals

Our proven model does not ultimately predict Kohl's earnings growth this time around. The combination of a positive and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that's not the case here. You can find more information about Kohl's in our .

Although Kohl's ranks third in Zacks, its -2.14% gain ESP surprising forecast is inconclusive.

Stocks with favorable portfolios

Here are some companies to consider that our model shows have the right mix of elements to beat in this quarter's earnings.

Casey's General Stores (CASY Quick Quote – ) currently has an Earnings ESP of +5.19% and a Zacks Rank of 3. CASY is expected to report revenue growth when it reports third-quarter fiscal 2022 results. The Zacks Consensus Estimate for Casey's General Stores revenue is $3,061 million, up 52.3% from the figure reported in the same quarter last year. You can see that.

The Zacks Consensus Estimate for Casey's General Stores' quarterly earnings is $1.45 per share, which represents a 39.4% improvement over the figure reported in the same quarter last year. CASY has averaged earnings growth of 20.1% over the past four quarters.

American Eagle Outfitters (AEO Quick Quote -) currently has an earnings ESP of +0.69% and a Zacks Rank #3. AEO will likely see a summary decline when it reports its numbers for the fourth quarter of fiscal 2021. The Zacks Consensus Estimate for quarterly earnings per share of 36 cents suggests a decline of 7.7% from the figure reported in the year-ago quarter.

American Eagle Outfitters' revenue is expected to rise from the figure reported in the year-ago quarter. The Zacks Consensus Estimate for quarterly revenue is $1.521 billion, up 17.6% from the figure reported a year ago. AEO's average earnings surprise over the past four quarters has been 12.7%.

Costco (COST Quick Quote – ) currently has an earnings ESP of +0.75% and is a Zacks #3 rank. COST is likely to increase its profit when it reports its Q2 FY2022 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $2.67 indicates a 24.8% increase from the figure reported in the same quarter last year.

Costco's revenue is expected to increase from the figure reported in the year-ago quarter. The Zacks Consensus Estimate for quarterly revenue is $51.1 billion, which suggests a 14% increase over the figure reported in the same quarter last year. COST's average revenue surprise over the past four quarters has been 8.3%.

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