Market Overview

Retail Earnings Previews: Staples, American Eagle Outfitters and Others

While most of the big retailers already have posted their most recent quarterly results, Wednesday will bring fourth-quarter and full fiscal-year reports from specialty retailers American Eagle Outfitters (NYSE: AEO), Big Lots (NYSE: BIG), PetSmart (NYSE: PETM) and Staples (NASDAQ: SPLS).

Analysts surveyed by Thomson/First Call expect to see at least a little year-over-year earnings per share (EPS) and revenue growth from all four of them for their most recent quarters.

American Eagle Outfitters

Analysts on average predict that this Pittsburgh-based purveyor of apparel for teens and young adults will report before the markets open that revenue rose more than seven percent year-over-year to $1.12 billion for the fourth quarter. But per-share earnings are expected to come to $0.56 for the quarter, up from $0.35 per share in same quarter of last year.

The full-year forecast calls for $1.40 per share on sales of $3.48 billion. That would be up from EPS of $0.86 and revenue of $3.16 billion a year ago. That consensus EPS estimate, like the quarterly one, has been steady over the past 60 days.

The price to earnings (P/E) ratio is higher than the industry average and the return on equity is more than 16 percent. The retailer's dividend yield is about 2.1 percent. Shares are up about eight percent year to date. But over the past six months, the stock has narrowly underperformed competitor Gap (NYSE: GPS).

Big Lots

The consensus forecast calls for this Columbus, Ohio-based broadline closeout retailer to post earnings of $1.98 per share for the quarter and $2.90 per share for the full year. That compares to the previous year's EPS of $1.75 and $2.99, respectively. Both consensus EPS estimates have slipped by a penny over the past 60 days.

Analysts also are looking for quarterly revenues of $1.75 billion, which would be up almost five percent year-over-year, and $5.40 billion for the full year, which would be more than three percent higher.

Big Lots' P/E ratio is less than the industry average and its return on equity is more than 24 percent. Note that the short interest is more than 18 percent of the float. Shares are up about 16 percent year to date, and the stock has outperformed the likes of Dollar General (NYSE: DG) over the past six months.

PetSmart

Analysts anticipate that EPS here will be more than 24 percent higher year-over-year to $1.21 for the quarter. And the quarterly revenue is also expected to have grown, by more than 15 percent to $1.89 billion. This Phoenix-based provider of products and services for pets has topped analysts' earnings expectations in the past eight quarters.

For the full year, EPS of $3.53 per share on sales of $6.77 billion are expected. That would be up year-over-year from $2.55 per share and revenue of $6.11 billion. PetSmart reports Wednesday after the market close.

The long-term EPS growth forecast is more than 17 percent and the return on equity is about 31 percent. The dividend yield is about one percent. Shares have fallen more than seven percent over the past six months, and the stock has underperformed Walmart (NYSE: WMT) in that time.

Staples

Fiscal fourth-quarter earnings are expected to come to $0.45 per share, while revenues totaled $6.72 billion, when Staples reports Wednesday morning. That would be up from $0.41 per share and $6.46 billion in the equivalent period of last year. But this office products company only exceeded EPS estimates in two of the past four quarters.

Full-year EPS are expected to be flat year-over-year at $1.38. And annual revenue is predicted to decline less than two percent to $24.69 billion. That consensus EPS estimate, like the quarterly one, has not changed in the past 60 days.

The dividend yield is about 3.4 percent, but the long-term EPS growth forecast is only about four percent. And the short interest is more than 11 percent of the float. The share price is more than 13 percent higher since the beginning of the year. But the stock has underperformed competitors Office Depot (NYSE: ODP) and OfficeMax (NYSE: OMX) over the past six months.

Posted-In: American Eagle Outfitters big lots dollar generalEarnings Long Ideas Short Ideas Previews Trading Ideas Best of Benzinga

 

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