Earnings Expectations for the Week of November 7
Many of the S&P 500 have already reported results for the most recent quarter. But lots of earnings reports are scheduled for this week. Among those reporting are General Motors (NYSE: GM), as well as the first of a wave of results from retailers: Macy's (NYSE: M), Kohl's (NYSE: KSS) and Nordstrom (NYSE: JWN). Entertainment giant Disney (NYSE: DIS) will also share its results this week.
Recovering Big Three automaker General Motors is expected to report Wednesday that its third-quarter earnings came to $0.96 per share. And revenues are expected to total $36.7 billion. So far, the full-year forecast calls for per-share earnings 39.5% higher than a year ago with revenues up 11.3%. Note that analysts have underestimated per-share earnings in the past three quarters, since GM's reemergence from bankruptcy. EPS are predicted to grow 12.4% over the next five years. But despite a more than 5% rise in the past week, the share price has drifted downward since early this year and is now about 36% lower year to date. The stock has underperformed that of competitor Ford (NYSE: F) since the beginning of the year.
Analysts are looking for iconic department store operator Macy's, scheduled to report Wednesday, to post per-share earnings that have doubled year over year, or $0.16. And for the third quarter during which the retailer saw strong same-store sales, revenues are expected to total $5.9 billion. That would be an increase of 4.7% from a year ago. Analysts so far predict that full-year EPS will be up more than 20% and sales more than 5% higher. Note that consensus EPS estimates have been better than expected in recent quarters. The stock has more than recovered from its sell-off in August, rising more than 18% in the past month and recently hitting a 52-week high. Over the past six months, the stock has outperformed competitors JCPenney (NYSE: JCP) and Kohl's.
Kohl's was one of the few retailers whose October same-store sales growth was better than the analysts' forecast. When the Wisconsin-based department store operator posts its third-quarter results on Thursday, it is expected to offer up $0.78 per share earnings on $4.4 billion in revenues. A year ago, earnings were $0.63 per share and revenues totaled $4.2 billion. In most recent quarters, Kohl's earnings have come within a penny or three of consensus estimates. The company has a dividend yield of 1.8%. The share price is up about 33% since reaching a 52-week low back in September and is again in the neighborhood of its 52-week high. Over the past six months, the stock also has outperformed JCPenney's, as well as the broader markets.
The consensus forecast for Nordstrom, which also has a dividend yield of 1.8%, calls for $0.58 per share earnings in Thursday's report. That would be up a nickel per share from the third quarter a year ago. Revenues are expected to have jumped 13.3% to $2.4 billion for the quarter in which the luxury retailer saw strong same-store sales. Analysts have underestimated Nordstrom's per-share earnings in three of the past four quarters. The company has a healthy return on equity of 35.2%. The share price has pulled back more than 5% from a recent 52-week high but is still more than 20% higher year to date. Over the past six months, the stock has outperformed competitor Saks (NYSE: SKS).
During the three months that ended in September, Walt Disney announced a deal to bring James Cameron's Avatar to Disney parks and it also named a new president of Disney Consumer Products. On Thursday, the Burbank, Calif.-based company is expected to post $0.54 per share earnings for the fiscal fourth quarter, on revenues of $10.4 billion. That compares to earnings of $0.45 per share and $9.7 billion in revenues a year ago. The full-year forecast calls for EPS up 16.9% and revenues up 7.2%. The long-term EPS growth forecast is 13.8% and the dividend yield is 1.2%. The share price has risen more than 23% from a 52-week low in early October. But the stock has underperformed the broader markets since the beginning of the year.
Other companies expected to report year-over-year EPS growth this week include Advance Auto Parts (NYSE: AAP), Dish Network (NASDAQ: DISH), homebuilder DR Horton (NYSE: DHI), Green Mountain Coffee Roasters (NASDAQ: GMCR), Priceline.com (NASDAQ: PCLN), Ralph Lauren (NYSE: RL), Rockwell Automation (NYSE: ROK) and Viacom (NYSE: VIA-B). Lower per-share earnings are anticipated from video game publisher Activision Blizzard (NASDAQ: ATVI), Cisco Systems (NASDAQ: CSCO) and hamburger chain operator Wendy's (NYSE: WEN).
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