Kohl's Earnings: Wall Street Expects Worst Quarter In Years

Shares of Kohl's Corporation (NYSE: KSS) are slightly down on Wednesday afternoon, as the company prepares to announce its first quarter financial results on Thursday morning, before the market opens.

Like many other retailers, Kohl’s earnings are quite cyclical. They peak in the fourth quarter and fall substantially in odd quarters -- the first and third.

For the current quarter, Wall Street analysts expect earnings of $0.57 per share on revenue of $4.182 billion, while the crowd projects earnings of $0.60 per share on revenue of $4.187 billion.

These figures compare to earnings of $0.60 per share and revenue of $4.07 billion reported in the first quarter of 2014. While revenue is expected to come in higher than a year ago, earnings are projected around the same level.

As seen in the chart above, Kohl’s has a history of reporting earnings quite in line with consensus.

The table above includes a history of estimates versus actual results for the past couple of years. Earnings are expected to hit their lowest point in at least two years this quarter.

Upside Potential

In a report published Tuesday, analysts at MKM Partners previewed Kohl’s earnings.

They noted, "While there were a few challenges in the quarter, including adverse weather in February and the ports disruptions, we expect a solid print and see slight upside potential to Street expectations. We believe key initiatives, including a renewed focus on national brands (50% of sales LY vs. 48% in FY13), as well as the new loyalty and beauty programs, are gaining traction against a generally constructive macro backdrop."

Related Link: Kohl's Earnings: MKM Analysts See Upside Potential

The analysts model earnings of $0.56 per share, and same-store sales growth of 3 percent. For 2015 and 2016, they expect EPS of $4.55 to $4.58 and $5.10 to $5.13, respectively.

The firm reiterated a Buy rating on Kohl's, setting a price target of $87.

Telsey Advisory Group also previewed the company's earnings, and projected EPS of $0.54 and same-store sales growth of 2.7 percent.