Market Overview

Earnings Expectations For The Week Of November 11: Walmart And Other Retailers

Here is a preview of what earnings to expect for the week starting November 11.

While Cisco Systems (NASDAQ: CSCO), Dish Network (NASDAQ: DISH) and Viacom (NASDAQ: VIAB) are expected to post earnings growth when they report quarterly results this week, the focus really will be on retailers like Walmart (NYSE: WMT), Macy's (NYSE: M) and Kohl's (NYSE: KSS) as the holiday shopping season gets underway.

Last week, the retail earnings season kicked off when CVS Caremark (NYSE: CVS) posted better-than-expected earnings and raised its guidance, and Office Depot (NYSE: ODP) and OfficeMax each said earnings declined more than expected in their final reports before they merged.

Below is a quick look at what analysts expect from some of this week's most prominent reports from retailers.

See also: Abbreviated Holiday Season Will Cost Stores $1.5 Billion

Walmart

Analysts expect the world's largest retailer to say that its earnings per share (EPS) grew more than four percent year-over-year to $1.13 in the fiscal third quarter. Also, revenues for the quarter are estimated to be more than two percent higher to total $116.75 billion.

Note that Walmart just missed consensus EPS estimates in the previous two quarters. Furthermore, the estimate for the third quarter has slipped by a penny in the past 60 days. Walmart is scheduled to share its results Thursday morning before the opening bell.

Macy's

In its report early Wednesday, the venerable department store operator is expected to post third-quarter earnings that were more than seven percent higher than in the year-ago period, to $0.39 per share. Note that the consensus EPS estimate was $0.42 just 60 days ago, indicating a decline in analysts' sentiment.

Revenues for the quarter are predicted to have grown about two percent year-over-year to $6.20 billion. Looking ahead, revenues for the current quarter are so far expected to have declined marginally, while they are essentially flat for the full fiscal year.

Kohl's

The fiscal third-quarter forecast for America's largest department store chain calls for EPS of $0.86 and for revenues to total $4.55 billion. That compares to a profit of $0.91 per share and $4.49 billion in sales in the year-ago period. Analysts seem certain, as their consensus EPS estimate has not changed in the past 60 days.

For the current quarter, which includes most of the holiday shopping season, sequential and year-over-year growth in EPS is expected, but revenues are predicted to be lower than a year ago. Look for the company to share its results Thursday before the markets open.

Nordstrom

Third-quarter earnings from one of the largest upscale retailers in the United States are forecast to come to $0.66 per share in Thursday's report. That would be down about seven percent from in the year-ago period. Nordstrom (NYSE: JWN) topped consensus EPS estimates by more than five percent in the previous quarter.

The Seattle-based company also is expected to say that revenues totaled $2.87 billion in the third quarter, which would be higher than a year ago by more than two percent. So far, a smaller revenue increase and a marginal decline in earnings are forecast for the current quarter as well.

Dick's Sporting Goods

One of the largest sporting goods retailers in the world, Dick's Sporting Goods (NYSE: DKS) is expected to report that for its fiscal third quarter it had earnings of $0.39 per share and $1.37 billion in revenue. In the same period of the previous year, it reported $0.40 EPS on revenue of $1.31 billion.

Note that the company only topped EPS expectations in one of the past four quarters. But the consensus estimate for the most recent quarter has ticked up by a penny over the past 60 days. So far, modest growth of both EPS and revenue is forecast for the current quarter.

And Others

Other companies likely to report year-over-year earnings growth this week include Applied Materials (NASDAQ: AMAT), Canadian Solar (NASDAQ: CSIQ), D.R. Horton (NYSE: DHI), NetApp (NASDAQ: NTAP) and NRG Energy (NYSE: NRG).

Agilent Technologies (NYSE: A) and Dean Foods (NYSE: DF) are expected to say per-share earnings declined from a year ago. Analysts are looking for narrower net losses from Dendreon (NASDAQ: DNDN) and Sotheby's (NYSE: BID).

The following week, quarterly reports are expected from many more retailers, including Abercrombie & Fitch (NYSE: ANF), Best Buy (NYSE: BBY), Dollar Tree (NASDAQ: DLTR), GameStop (NYSE: GME), Home Depot (NYSE: HD), J.C. Penney (NYSE: JCP) and Target (NYSE: TGT).

See also: Black Friday Stocks To Watch: Department Stores, Apparel/Footwear Retail

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