Market Overview

Earnings Expectations for the Week of February 20

The focus turns to earnings from retailers this week. Abercrombie & Fitch (NYSE: ANF) and Nordstrom (NYSE: JWN) kicked things off last week. The former posted lower earnings per share in line with estimates, while the latter narrowly beat EPS expectations but revenues fell short. Here is a look at what analysts are anticipating this week.

The consensus forecast for Wal-Mart Stores (NYSE: WMT), the world's largest retailer, calls for $1.45 per share earnings and revenues of $124.2 billion. That would be up from $1.34 and $116.4 billion in the fourth quarter of the previous year. Full-year earnings are predicted to be 9.4% higher to $4.49 per share and revenues to be up 6.0% to $447.3 billion in Tuesday's report. Walmart missed EPS estimates by a penny in the third quarter.

See also: Payroll Tax Cut Not Enough to Bring Shoppers to Wal-Mart, Costco, Family Dollar

Big-box home improvement store operator Home Depot (NYSE: HD) is expected to say Tuesday that its fourth-quarter earnings are 14.3% higher than a year ago to $0.42 per share. The full-year EPS forecast calls for $2.39, or 5.1% year-over-year growth. And revenues are expected to have risen about 2.5% for both the quarter and the full year. Note that analysts have underestimated Home Depot's EPS for more than ten quarters.

Results from Minneapolis-based Target (NYSE: TGT) are among Thursday's reports. EPS are estimated to total $1.40 and revenues to come to $21.2 billion. That compares to $1.38 and $20.7 billion in the same quarter of last year. Full-year earnings also are forecast to be up 8.5% to $4.24 per share and revenues 3.4% higher to $69.7 billion. Target beat the consensus EPS forecast by 10.8% in the third quarter.

See also: Target, Costco More Popular, Higher Costs Remain a Threat

Analysts expect Macy's (NYSE: M) fourth-quarter EPS will have risen eight cents year over year to $1.65 per share. And the consensus forecast for the full year is $2.81 per share, or 25.6% higher. Estimates for both the quarter and the year have inched up three cents over the past 60 days. Revenues for the quarter and the full year are expected to be more than 5% higher.

On Friday, JCPenney (NYSE: JCP) is expected to say that its fourth-quarter earnings totaled $0.68 per share on revenues of $5.5 billion. That would be down from $1.09 and $5.7 billion in the same period of last year, and also down from an EPS estimate of $1.09 some 60 days ago. Full-year earnings also are predicted to be down 23.9% to $1.21 per share and revenues 2.4% lower to $17.3 billion.

Fourth-quarter earnings from Kohl's (NYSE: KSS) are estimated to total $1.80 per share on revenues of $6.0 billion. In the same quarter of last year, the department store operator posted $1.66 per share and $6.0 billion. The full-year forecast has earnings up 15.1% to $4.30 per share and revenues 2.3% higher to $18.8 billion in Thursday's report.

Gap (NYSE: GPS) has not fallen short of consensus EPS estimates in the past 12 quarters. But analysts are looking for $0.42 per share earnings and revenues of $4.3 billion, down from $0.60 and $4.4 billion in the fourth quarter of the previous year. Full-year earnings and sales are expected to have declined year over year as well.

In Wednesday's report, earnings from Dollar Tree (NASDAQ: DLTR) are estimated to come to $1.59 per share for the fourth quarter and $4.02 per share for the full year. That would be a year-over-year rise from $1.29 and $3.24, respectively. Quarterly revenues are expected to total $1.9 billion, up 11.8%, as well as $6.6 billion for the year, or 12.4% higher. Analysts have underestimated EPS from this discount variety store operator for more than 10 quarters.

California-based grocery store operator Safeway's (NYSE: SWY) fourth-quarter earnings are forecast to be up two cents from a year ago to $0.64 per share. For the full-year, $1.72 EPS are predicted, or a 9.9% increase from the previous year. Both EPS estimates are the same as 60 days ago. Also, revenues are expected to be up more than 5% for both the quarter and the full year.

See also: Credit Suisse Upgrades Safeway to Outperform

Here is a peek at what analysts expect from some other retailers this week:

  • Barnes & Noble (NYSE: BKS): EPS down 8.0% to $0.92 (reports Tuesday)
  • Chicos FAS (NYSE: CHS): EPS down 8.3% to $0.11 (reports Wednesday)
  • Cracker Barrel Old Country Store (NASDAQ: CBRL): EPS down 5.0% to $1.14 (reports Tuesday)
  • HSN (NASDAQ: HSNI): EPS up 14.8% to $0.81 (reports Thursday)
  • Limited Brands (NYSE: LTD): EPS up 10.9% to $1.46 (reports Thursday)
  • RadioShack (NYSE: RSH): EPS down 76.5% to $0.12 (reports Tuesday)
  • TJX Companies (NYSE: TJX): EPS up 14.5% to $0.62 (reports Wednesday)
  • Winn-Dixie Stores (NASDAQ: WINN): a net loss of $0.26 per share (reports Tuesday)
  • Zale (NYSE: ZLC): EPS down 2.5% to $0.77 (reports Wednesday)

This week's other prominent quarterly reports include those from Dell (NASDAQ: DELL), Hewlett-Packard (NYSE: HPQ), Hormel Foods (NYSE: HRL) and Washington Post (NYSE: WPO). Analysts expect them to report year-over-year EPS declines. Also, American International Group (NYSE: AIG), Intuit (NASDAQ: INTU) and Kraft Foods (NYSE: KFT) are expected to say their per-share earnings are higher than a year ago.

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