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Wall Street Is Hungry For Costco, Kroger Earnings

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Wall Street Is Hungry For Costco, Kroger Earnings
  • Two specialty retailers are expected to report their latest quarterly results this week.
  • Consensus forecasts call for modest earnings growth from both companies.
  • But only one of them has exceeded expectations in the past few quarters.

The parade of quarterly results from the big retailers begins to wind down this week. Among those taking their turns on the earnings stage in the first week in March are Costco Wholesale Corporation (NASDAQ: COST) and The Kroger Co (NYSE: KR).

By and large, Wall Street analysts predict there will be modest growth on the top and bottom lines for both companies. Yet one of them has handily topped earnings expectations in recent quarters, while the other had earnings that fell short in the most recent report.

Below is a closer look at what is expected from the reports of these two stocks. That is followed by a quick peek at some of the week's other most anticipated earnings reports from retailers.

Costco

When the membership warehouse operator shares its results late Wednesday, the consensus forecast of Estimize calls for a profit of $1.29 per share for the fiscal second quarter. That would be up from earnings per share (EPS) of $1.25 in the same period of last year. Earnings fell well short expectations in the previous quarter, and the Wall Street estimate has slipped two cents in the past 60 days.

Revenue for the three months that ended in February will be $28.72 billion, or up around 4 percent year over year, if the 45 survey respondents are correct. Wall Street analysts are looking for just $28.51 billion for the quarter. Note that here too the analysts overestimated the results in the previous period.

Related Link: Can JD.Com And Staples Overcome Low Earnings Expectations?

Kroger

Wall Street's fourth-quarter forecast for the largest U.S. supermarket chain by revenue calls for EPS to have risen by two cents from the year-ago period to $0.54. Some 23 Estimize respondents predict EPS will be $0.55. Note that Kroger has topped EPS expectations in recent quarters, but the Wall Street estimate has not changed in the past 60 days.

Revenue narrowly missed estimates back in the third quarter, and now Estimize respondents are looking for $26.07 billion. Wall Street is a bit more optimistic, predicting it will total $26.26 billion, or up more than 4 percent year over year. However, the analysts see full-year revenue less than 2 percent higher to $109.94 billion. Look for the company to report its results before Thursday's opening bell.

And Others

American Eagle Outfitters, AutoZone, Barnes & Noble, Big Lots, Burlington Stores and Ross Stores are among the retail companies that Wall Street analysts expect to show earnings growth this week.

Earnings declines are in the works for Abercrombie & Fitch, Dollar Tree, Stage Stores and Staples, as well as net losses for Ascena Retail and JD.Com, if the consensus forecasts are correct.

At the time of this writing, the author had no position in the mentioned equities.

Image Credit: Public Domain

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