Earnings Expectations for the Week of August 13
Retail earnings season got off to a start last week when drug store chain CVS Caremark (NYSE: CVS) and department store operators Kohl's (NYSE: KSS), Macy's (NYSE: M) and Nordstrom (NYSE: JWN) bested second-quarter earnings estimates, while JCPenney (NYSE: JCP) reported a net loss. Many more retailers are scheduled to share their quarterly results this week. Here is a look at some of the most anticipated of those reports.
Second-quarter fiscal 2013 earnings for Bentonville, Ark.-based Walmart (NYSE: WMT) are forecast to come to $1.17 per share, while revenues totaled $115.5 billion. In the same quarter of last year, the company beat EPS estimates when it posted $1.09 per share and $109.4 billion in sales. Note that Walmart fell short of analysts' estimates in two of the past six quarters, but it beat estimates by a nickel per share in the first quarter. Walmart, which is trading near its all-time high, reports quarterly results Thursday before the markets open.
Analysts predict that big-box retailer Home Depot (NYSE: HD) will say Tuesday that it saw a profit of $0.97 per share in the second quarter, which would be up from $0.86 per share in the same period a year ago. The consensus estimate has remained unchanged in the past 60 days. Revenues for the quarter are forecast to have crept up 2.5 percent from a year ago to $20.7 billion. Last week, Home Depot announced that it would acquire U.S. Home Systems, a supplier of cabinet refacing products, bath-tub liners and closet-organization systems.
This shopping mall staple is expected to say Thursday that for its second quarter it had earnings of $0.48 per share. That would be up from the $0.35 per share that Gap (NYSE: GPS) reported in the same period a year ago. Sixty days ago, that consensus EPS estimate was only $0.37. And analysts on average expect revenues to total $3.5 billion, or 4.4 percent higher than in the year-ago quarter. Gap shares reached a 52-week high last week after the San Francisco-based retailer said same-store sales surged to 10 percent in July.
Dollar Tree (NASDAQ: DLTR), the discount variety store operator, is expected to report that its second quarter profit rose 17.0 percent year over year to $0.47 per share. That EPS estimate is unchanged over the past 60 days. Analysts have underestimated Dollar Tree's EPS in the past ten quarters. This specialty retailer had a two for-one share split on July 12, and analysts on average expect revenue for the quarter to total $1.7 billion. That would be a year-over-year increase of 10.9 percent. The company is scheduled to share its quarterly results Thursday before the opening bell.
In its Thursday report, Hoffman Estates, Ill.-based Sears Holdings (NASDAQ: SHLD) is expected offer up a net loss of $0.93 per share for the second quarter. That compares to a loss of $1.27 a share in the same period of last year, as well as to a consensus EPS estimate of $1.45 a month ago. In the previous quarter, Sear's exceeded consensus estimates by 53.7 percent, ending a four-quarter streak of earnings misses. Second-quarter revenues are expected to total $9.6 billion, which would be about 6.8 percent lower than a year ago.
And Other Retailers
Among other retailers scheduled to post results this week, analysts are looking for year-over-year earnings and revenue growth from America's Car-Mart (NASDAQ: CRMT), ANN (NYSE: ANN), Dick's Sporting Goods (NYSE: DKS), Foot Locker (NYSE: FL), Hibbett Sports (NASDAQ: HIBB), PetSmart (NASDAQ: PETM), Ross Stores (NASDAQ: ROST) and TJX Companies (NYSE: TJX).
EPS from Buckle (NYSE: BKE), Limited Brands (NYSE: LTD) and Staples (NASDAQ: SPLS) are expected to be about the same as a year ago. But Abercrombie & Fitch (NYSE: ANF), GameStop (NYSE: GME), and Target (NYSE: TGT) are expected to report a decline in earnings. And a net loss is anticipated from Bon-Ton Stores (NASDAQ: BONT), Children's Place Retail Stores (NASDAQ: PLCE) and Kirkland's (NASDAQ: KIRK).
Also look for reports the following week from retailers Best Buy (NYSE: BBY), Lowe's Companies (NYSE: LOW) and Urban Outfitters (NASDAQ: URBN), as well as PC makers Dell (NASDAQ: DELL) and Hewlett-Packard (NYSE: HPQ).
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