Retail Earnings Parade Begins: Target, Wal-Mart in the Spotlight

  • The big retailers continue taking their turns on the earnings stage this week.
  • Highlights include the most recent quarterly results from two leading big-box retailers.
  • Wall Street analysts are looking for earnings growth from one but revenue declines from both.
  • So far the most recent quarterly results from retailers have not been encouraging. But the parade of
    reports from big retailers continues this week, with some of the largest big-box store operators expected to take their turns. That includes the latest results from world's largest brick-and-mortar retailer,
    Wal-Mart Stores, Inc.WMT
    , and fellow big-box store chain
    Target CorporationTGT
    . Wall Street analysts forecast shrinking top line number from both of them, but of the two only Target is expected to show any earnings growth year over year. Below is a quick look at what analysts expect from these two reports, followed by a glance at some of the other most anticipated earnings results scheduled for this week.


    When this Minneapolis-based retailer shares its fiscal first-quarter results Wednesday morning, the Estimze consensus forecast calls for a profit of $1.21 per share, a penny higher than the estimate from Wall Street analysts. Note that earnings were $1.10 per share in the year-ago period, and that Target has not offered a positive surprise in the past two quarters. Revenue for the three months that ended in April will be $16.36 billion, or down more than 4 percent year over year, if the 28 Estimize survey respondents are correct. Wall Street analysts are looking for $16.32 billion. Either estimate would be the lowest quarterly revenue in the past two years.
    See also:Retail Earnings Parade Continues: Home Depot, Lowe's in the Spotlight


    Wall Street's forecast for this Dow Jones Industrial Average component sees earnings down 14 cents from the year-ago period to $0.89 per share, the same as the consensus forecast from 45 Estimize respondents. Both Wall Street and Estimize underestimated earnings numbers in the previous period. However, revenue fell short of consensus estimates in previous quarter, and now Estimize respondents are looking for $112.91 billion for the most recent period. The Wall Street forecast pegs the number at $113.14 billion, which that would be down less than 2 percent year over year to the lowest level in the past two years. Look for Wal-Mart's fiscal first-quarter report before regular trading begins on Thursday.

    And Others

    Other retailers that Wall Street analysts expect to show at least some earnings growth when they report this week include Advance Auto Parts, American Eagle Outfitters, Cato, Children's Place, Citi Trends, Foot Locker, Hibbett Sports, Home Depot, Lowe's, New York & Company, Ross Stores, Shoe Carnival, TJX Companies and Vipshop. The consensus forecast calls for EPS at Urban Outfitters to be the same as in the year-ago period. On the other hand, EPS at Boot Barn, Buckle, Dick's Sporting Goods, Gap, L Brands, Staples and Stein Mart will be smaller than a year ago, according to the consensus estimates. And net losses are in the cards for Bon-Ton Stores, Gordmans Stores, HHGregg and Stage Stores, if expectations are accurate.
    At the time of this writing, the author had no position in the mentioned equities.
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    Posted In: Earnings ExpectationsTargetWal-MartWal-Mart StoresWalmartEarningsNewsPreviewsTrading Ideas