Market Overview

Earnings Expectations for the Week of November 12


While the consensus forecasts call for year-over-year earnings growth from the likes of Cisco Systems (NASDAQ: CSCO), J.M. Smucker (NYSE: SJM) and Viacom (NASDAQ: VIAB) -- as well as lower per-share earnings from Dell (NASDAQ: DELL) -- when they share their most recent quarterly results this week, the focus will again be on reports from big retailers. Here is a peak at what analysts expect to see from the following retailers for the period leading up to the holiday shopping season:

Walmart (NYSE: WMT). The consensus forecast calls the world's largest retailer to post fiscal third-quarter earnings of $1.07 per share, which would be up from $0.97 EPS in the year-ago period. That consensus estimate is unchanged in the past 60 days. And analysts see revenue rising more than four percent year-over-year to $115.04 billion. Look for Walmart's report Thursday before the opening bell.

Home Depot (NYSE: HD). Analysts on average anticipate largest home improvement retailer in the United States will say Tuesday morning that it saw a profit of $0.70 per share in the third quarter, compared with $0.60 per share a year ago. Revenue is predicted to have increased more than three percent to $17.92 billion. Note that Home Depot has not fallen short of consensus EPS estimates in more than ten quarters.

Target (NYSE: TGT). This Minneapolis-based big-box retailer is expected to report $0.77 per share earnings and sales of $16.93 billion for the third quarter. That compares with $0.82 per share and $16.40 billion in revenue in the same period of last year. Note that analysts have underestimated Target's per-share earnings in the past six quarters. The company is scheduled to share its results Thursday morning.

The Gap (NYSE: GPS). Analysts on average expect the largest specialty apparel retailer in the United States to report Thursday afternoon that its per-share earnings jumped by almost 40 percent to $0.63. That consensus EPS estimate has climbed from the $0.54 it was 60 days ago. The San Francisco-based company's revenue is expected to total $3.82 billion, which would be up more than six percent from the third quarter of last year.

The Children's Place (NASDAQ: PLCE). Third-quarter earnings from this Secaucus, N.J.-based specialty retailer are expected to come to $1.60 per share, or more than 16 percent higher year-over year. That EPS estimate is up from $1.58 in the past 60 days. Analysts are also looking for revenue to be less than four percent higher to $500.87 million. The company is on tap to report Wednesday before the opening bell.

TJX Companies (NYSE: TJX). The consensus forecast for the fiscal third quarter calls for EPS growth of about 13 percent year-over-year to $0.61 and sales up about 10 percent to $6.37 billion. Note that the consensus EPS estimate is unchanged in the past 60 days, and in the past eight quarters the EPS results have been within a penny or two per share of analysts' expectations. The largest off-price department store chain in the U.S. reports Tuesday Morning.

Dollar Tree (NASDAQ: DLTR). This Chesapeake, Va.-based discount variety store operator is expected to post $0.49 per share earnings and sales of $1.73 billion for the third quarter. That would be up from $0.44 per share and $1.60 billion in revenue in the same period of last year. But note that the consensus estimate has slipped in the past 60 days from $0.51 per share. Dollar Tree is scheduled to share its results Thursday morning.

Sears Holdings (NASDAQ: SHLD). The operator of the Sears and Kmart chains is expect to post a net loss of $2.17 per share for the third quarter on Thursday, as well as revenue of $8.59 billion. That would compare with a net loss of $2.57 and sales of $95.6 billion in the year-ago period. For what it is worth, 60 days ago the analysts on average estimated the net loss to be $2.23 per share.

Other retailers expected to report year-over-year EPS growth this week include Abercrombie & Fitch (NYSE: ANF), The Buckle (NYSE: BKE), PetSmart (NASDAQ: PETM), Hibbett Sports (NASDAQ: HIBB), Ross Stores (NASDAQ: ROST) and Williams-Sonoma (NYSE: WSM). Analysts anticipate earnings declines from GameStop (NYSE: GME), Limited Brands (NYSE: LTD) and Staples (NASDAQ: SPLS), as well as a net loss from Bon-Ton Stores (NASDAQ: BONT).

Posted-In: Earnings Long Ideas News Guidance Short Ideas Previews Analyst Ratings Trading Ideas


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