Market Overview

Earnings Expectations For The Week Of December 1

Earnings Expectations For The Week Of December 1
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The holiday shopping season has begun, and a flurry of earnings reports from retailers is on tap this week. Analysts are on average looking for year-over-year earnings growth from American Eagle Outfitters (NYSE: AEO), Dollar General Corp. (NYSE: DG) and The Kroger Co. (NYSE: KR) in their most recent quarters.

However, they see a decline in earnings from Abercrombie & Fitch Co. (NYSE: ANF) and a wider net loss from Aeropostale Inc (NYSE: ARO) in this week's results.

Here is a closer look at these and some of this week's other most anticipated quarterly reports.

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Abercrombie & Fitch

The fiscal third-quarter forecast for this apparel retailer calls for earnings per share to have slipped from $0.52 in the year-ago period to $0.41 in Wednesday morning's report. Revenues for the period that ended in October are expected to have dropped more than 11 percent to $916.03 million.

That consensus EPS estimate has dropped dramatically from $0.71 per share just 60 days ago. However, Abercrombie has handily topped per-share earnings estimates in recent periods, including by more than 72 percent in the second quarter. So far though, expectations are not high for the current quarter either.


The forecast for this mall-based specialty retailer calls for a net loss of $0.45 per share and for revenue to come to $444.73 million for its fiscal third quarter. In the year-ago period, the company posted a net loss of $0.29 and revenue totaled $514.59 million. The consensus EPS estimate is unchanged in 60 days.

For the current quarter, the net loss is expected to be lower sequentially and nearly flat year on year. Revenue will be sequentially higher, but still down almost 12 percent from a year ago, if analysts are correct. Look for Aeropostale to share its results Thursday after the closing bell.

American Eagle Outfitters

In its report late Wednesday, this competitor to Abercrombie and Aeropostale is expected to say that earnings rose more than 16 percent year over year to $0.22 per share for the three months that ended in October. Note that EPS matched consensus estimates in three of the past four quarters.

Revenues for the third quarter are predicted to be less than 2 percent lower to $845.95 million, relative to the same period of last year. So far the consensus forecast for the current quarter has revenue essentially flat but per-share earnings up almost 23 percent.

Dollar General

Analysts expect this variety store operator to say that it had a profit of $0.80 per share in its most recent quarter. That would be up from $0.72 in the year-ago period. Revenues are forecast to have swelled more than 8 percent from a year ago to $4.75 billion for the three months that ended in October.

The consensus EPS estimate is the same as it was 60 days ago, but Dollar General matched expectations on two of the past three quarters and missed in one. The Tennessee-based company is scheduled to report its results Thursday before the U.S. markets open.


When it posts its results first thing Thursday, this grocer is expected to say earnings for the most recent quarter were $0.61 per share. That would more than 13 percent higher than in the year-ago period. EPS exceeded expectations in three of the past four quarters.

The consensus forecast also calls for revenue to be up more than 10 percent from a year ago to $24.81 billion for the fiscal third quarter. So far, sequential and year-on-year growth is forecast for both the top and bottom lines in the current quarter, a good sign for the holiday shopping period.

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And Others

Other retailers expected to show earnings growth this week include Barnes & Noble and Ulta Salon. However, shrinking earnings are anticipated from Ascena Retail Group, Express and Guess, as well as a wider net loss from Sears Holdings.

The week's other anticipated earnings gainers include Avago Technologies, Bank of Montreal and PVH, but declines in earnings are predicted for Finisar and for Smith & Wesson.

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Posted-In: abercrombie & fitch Aeropostale American Eagle Outfitters dollar generalEarnings News Previews Trading Ideas Best of Benzinga


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