Market Overview

Earnings Expectations For The Week Of November 18: More Retailers On Deck

Earnings Expectations For The Week Of November 18: More Retailers On Deck

The focus is on retail as the as the crucial holiday shopping season is set to get underway.

Last week, Walmart (NYSE: WMT) and Kohl's (NYSE: KSS) offered weak third-quarter results, while Macy's (NYSE: M) and Nordstrom (NYSE: JWN) turned in earnings beats.

Plenty more retailers are on deck this week, including big-box chain operators Best Buy (NYSE: BBY), Home Depot (NYSE: HD) and Target (NYSE: TGT). Analysts are looking for growth on the top and bottom lines from Home Depot, but declining earnings per share (EPS) from Target and declining revenue from Best Buy, relative to a year ago.

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

Abercrombie & Fitch

Analysts expect the hip apparel retailer to say that its per-share earnings fell almost 56 percent year-over-year to $0.45 in the fiscal third quarter. Also, revenues for the quarter are estimated to be more than nine percent lower to total $1.06 billion.

Note that Abercrombie & Fitch (NYSE: ANF) missed consensus EPS estimates in the previous two quarters by 50 percent or more. However, the estimate for the third quarter has inched up two cents in the past 30 days. Look for the report Thursday morning before the opening bell.

Best Buy

In its report early Tuesday, this consumer electronics superstore operator is expected to post third-quarter earnings that were more than 63 percent higher than in the year-ago period, to $0.11 per share. Analysts seem certain, as the consensus EPS estimate is unchanged in the past 60 days.

However, revenues for the quarter are predicted to have fallen about 13 percent year-over-year to $9.36 billion. Looking ahead, revenues for the current quarter are so far expected to have declined more than 10 percent, as well as more than 13 percent for the full fiscal year.

See also: Best Buy Earnings Preview: Is The Turnaround Real?

Home Depot

The fiscal third-quarter forecast for America's largest home improvement store chain calls for EPS of $0.89 and for revenues to total $19.17 billion. That would be up from a profit of $0.74 per share and $18.13 billion in sales in the year-ago period. Note though that the consensus EPS estimates has slipped by a penny in the past 60 days.

For the current quarter, which includes most of the holiday shopping season, sequential growth in EPS is expected, but revenues are predicted to be marginally lower than a year ago. The company is scheduled to share its results Tuesday before the markets open.

See also: Home Depot Earnings Preview: Keeping Ahead Of Lowe's?

J.C. Penney

This struggling department store operator is forecast to report a net loss of $1.72 per share in its Wednesday morning's report. That would be deeper than the $0.93 per share net loss in the year-ago period. Note that net losses were much larger than predicted in the previous four quarters.

J.C. Penney (NYSE: JCP) also is expected to say that revenues totaled $2.80 billion in the third quarter, which would be lower than a year ago by more than four percent. So far, a marginal revenue increase and a narrower net loss are forecast for the current quarter.

Target

Third-quarter earnings from this Minneapolis-based retailer are expected to come to $0.63 per share on $17.37 billion in revenue in Thursday's report. In the same period of the previous year, the company reported $0.81 per share on sales of $16.93 billion.

Note that the company narrowly missed EPS expectations in two of the past four quarters. And the consensus estimate for the most recent quarter has ticked down by a penny over the past 60 days. So far, a modest decline in both EPS and revenue is forecast for the current quarter.

And Others

Other retails predicted to report year-over-year earnings growth this week include ANN (NYSE: ANN), Buckle (NYSE: BKE), Dollar Tree (NASDAQ: DLTR), Foot Locker (NYSE: FL), Fresh Market (NASDAQ: TFM), GameStop (NYSE: GME), Gap (NYSE: GPS), L Brands (NYSE: LTD), Lowe's (NYSE: LOW), PetSmart (NASDAQ: PETM), Ross Stores (NASDAQ: ROST), TJX Companies (NYSE: TJX), Urban Outfitters (NASDAQ: URBN) and Williams-Sonoma (NYSE: WSM).

Earnings declines are forecast for Dick's Sporting Goods (NYSE: DKS), Hibbett Sports (NASDAQ: HIBB) and Staples (NASDAQ: SPLS).

Other companies likely to report year-over-year earnings growth this week include ADT (NYSE: ADT), Deere (NYSE: DE), Green Mountain Coffee Roasters (NASDAQ: GMCR) , Medtronic (NYSE: MDT) , Pandora Media (NYSE: P) , Salesforce.com (NYSE: CRM) and Tyson Foods (NYSE: TSN).

Campbell Soup (NYSE: CPB) is expected to say per-share earnings declined from a year ago. Analysts are looking for deeper net loss from Intuit (NASDAQ: INTU).

See also: Weekly Preview: PMI Data In Focus

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