Market Overview

Earnings Expectations for the Week of August 6

Earnings Expectations for the Week of August 6

Analysts on average expect to see per-share earnings that are less than a year ago when Dish Network (NASDAQ: DISH), MGM Resorts (NYSE: MGM), Molson Coors (NYSE: TAP), News Corp. (NASDAQ: NWSA), Sotheby's (NYSE: BID) and Sirius XM Radio (NASDAQ: SIRI) share their quarterly results this week. Retail earnings will be the focus with second-quarter results due from the following prominent department store operators.


In its Wednesday report, earnings from Cincinnati-based Macy's (NYSE: M) are expected to come to $0.64 per share for the second quarter. That compares to $0.55 a share in the same period of last year. The stock had a consensus EPS estimate of $0.65 a month ago. In the previous quarter, Macy's exceeded consensus estimates by three cents per share, or 7.5 percent year-over-year. Second-quarter revenues are expected to total about $6.1 billion, which would be around 3 percent higher than a year ago. The company just announced better-than-expected same-store sales in July and it is looking to build on four-straight revenue increases.


This department store operator is expected to say Thursday that for its second quarter it had a profit of $0.96 per share. That would be down from the $1.08 per share that Kohl's (NYSE: KSS) reported in the same period a year ago. Its per-share earnings have not fallen short of consensus estimates in the past four quarters -- the earnings beat in the first quarter was by a couple of pennies per share. Analysts on average expect revenues to total $4.2 billion, which is about the same as in the year-ago quarter. Kohl's said last week that its same-store sales rose 1.7 percent in July but were down 2.7 percent for the quarter.

See also: Retail Stocks Scooped Up Despite Scary Headlines


Second-quarter 2012 earnings for Seattle-based upscale retailer Nordstrom (NYSE: JWN) are forecast to come to $0.74 per share while revenues totaled $3.0 billion. In the same quarter of last year, the company beat EPS estimates when it posted $0.80 per share and $2.7 billion in sales. Note that Nordstrom fell short of analysts' estimates in the first quarter, its first miss in seven quarters. But it posted better-than-expected same-store sales for July, boosted by strength from its Nordstrom Rack discount stores. Nordstrom reports second-quarter results Thursday afternoon.


Analysts predict that struggling retailer JCPenney (NYSE: JCP) will say Friday that it saw a net loss of $0.22 per share in the second quarter as it continues to suffer from competition from the likes of Walmart (NYSE: WMT), Target (NYSE: TGT) and (NASDAQ: AMZN). The consensus estimate has dropped in the past 60 days from a loss of $0.13 per share. Revenues for the quarter are forecast to have fallen 17.5 percent from a year ago to $3.2 billion. Fitch downgraded the stock last week citing concerns about revenue heading into the back-to-school and holiday shopping seasons.

See also: JC Penney Strives to Bring Customers Back

And Others Retailers

Among other retailers scheduled to post results this week, analysts are looking for year-over-year earnings and revenue growth from CVS Caremark (NYSE: CVS) and Vitamin Shoppe (NYSE: VSI). But Advance Auto Parts (NYSE: AAP), Pantry (NASDAQ: PTRY) and TravelCenters of America (NYSEAMEX: TA) are expected to report a decline in earnings. A net loss is anticipated from Office Depot (NYSE: ODP).

Walt Disney (NYSE: DIS), Ralph Lauren (NYSE: RL) and Fossil (NYSE: FOSL) all have retail segments. Disney is expected to announce Tuesday after the markets close that overall EPS for the fiscal third quarter rose 16.1 percent from a year ago to $0.93 and revenue was 5.9 percent higher to $11.3 billion. However, Fossil and Ralph Lauren earnings are projected to have declined year-over-year.'s (NASDAQ: PCLN) EPS are predicted to be 25.5 percent higher than a year ago.

The largest retailer in the world Walmart is scheduled to share its quarterly results the following week. Also look for reports from retailers Abercrombie & Fitch (NYSE: ANF), Home Depot (NYSE: HD), Sears Holding (NYSE: SHLD) Target and many others that week.

See also: A Look Ahead: Next Week's ETFs to Watch


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