2 Specialty Retail Earnings Calls To Watch On Thursday

• Specialty retailers Gap Inc GPS and Best Buy Co Inc BBY will report their third quarter financial results on Thursday.
• According to Estimize, Gap is expected to deliver a year-over-year decline in earnings of at approximately 21 percent.
• On the other hand, the Street and the crowd are expecting Best Buy to report a year-over-year increase in earnings of at least 9 percent.

Gap

In the third quarter of 2014, Gap retrieved earnings of $0.80 per share on revenue of $3.972 billion. For the third quarter of 2015, the Street is modeling consensus earnings of $0.63 per share (in line with the high end of the $0.62 to $0.63 per share guidance) on revenue of $3.875 billion.

The crowd is slightly more optimistic, and projects consensus earnings of $.65 per share on revenue of $3.892 billion.

A couple of things should be noted from the chart above. In the first place, that, quarter-over-quarter, these estimates imply pretty much flat earnings. In the second place, that, leaving the miss from the first quarter aside, Gap has tended to beat (or at least meet) estimates over the past couple of years.

Best Buy

Opposite if the case of Best Buy, which is expected to deliver considerable year-over-year growth. The mid-cap tech retailer, which reported earnings of $0.32 per share on revenue of $9.38 billion, is now anticipated to announce earnings of at least $0.35 per share (the Street’s consensus), on sales of $8.842 billion.

The crowd, for its part, is modeling consensus earnings of $0.38 per share on revenue of $8.871.

Once again, investors should note that the company has tended to beat estimates over the past eight quarters, but also that the current consensus implies a decline from last quarter’s earnings of $0.49 per share – although Best Buy’s earnings are quite cyclical and the second quarter is usually better than the third.

Disclosure: Javier Hasse holds no positions in any of the securities mentioned above.