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Earnings Expectations for the Week of May 13

Earnings Expectations for the Week of May 13

It's time for the big retailers to step into the earnings spotlight once again. This week we will be hearing from Walmart, the king of retailers, which is expected to report some annual revenue and earnings growth. And then there is struggling J.C. Penney, from which analysts predict a deeper net loss.

Other retailers scheduled to share their quarterly results this week include Kohl's, Macy's and Nordstrom.


First-quarter fiscal 2014 earnings from Bentonville, Arkansas-based Walmart (NYSE: WMT) are expected to come to $1.15 per share, on revenues of $116.42 billion. In the same quarter of the previous year, the largest retailer in the world exceeded consensus earnings per share (EPS) estimates when it posted $1.09 and sales of $113.02 billion.

The consensus EPS estimate for the fiscal quarter has not changed in the past 60 days. But analysts underestimated Walmart earnings in the previous four quarters; the beat was by more than six percent in the fourth quarter. The company is scheduled to share its results Thursday before the markets open.

J.C. Penney

For its first quarter of 2013, once-iconic catalog and shopping mall standby J.C. Penney (NYSE: JCP) is expected to post a net loss of $0.86 per share, while revenues totaled $2.70 billion. That compares to a net loss of $0.25 and $3.15 billion in revenue the company reported in the same quarter of last year.

Analyst sentiment is deteriorating, as the consensus forecast 60 days ago called for a net loss of just $0.57. Then again, the losses were deeper than estimated in the past four quarters. Look for the earnings report Thursday afternoon.


First-quarter earnings from Macy's (NYSE: M) are forecast to come to $0.54 per share in Wednesday morning's report. That that would be up almost 19 percent from the year-ago period, though the consensus estimate has ticked down by a penny in the past 60 days. This Cincinnati-based department store operator beat analysts' EPS expectations in the past ten quarters.

Quarterly revenues are predicted to total $6.39 billion, which would be about four percent higher year-over-year. And thus far, revenues are expected to slip sequentially but be up marginally year-over-year in the current quarter.


In its report late Thursday, Nordstrom (NYSE: JWN), is expected to say that its first-quarter earnings rose almost eight percent from the year-ago period to $0.76 per share. That consensus EPS estimate has not changed in the past 60 days. But note that this retailer of upscale apparel and accessories fell short of expectations in two of the past six quarters.

Revenues from this Seattle-based company are forecast to total $2.80 billion for the most recent quarter. So far, analysts expect to see sequential and year-over-year growth of revenue and EPS in the current quarter.


Kohl's (NYSE: KSS), a Menomonee Falls, Wisconsin-based company, is expected to report Thursday morning that for its first quarter it saw a profit of $0.58 per share on $4.29 billion in revenue. In the same period of the previous year, EPS came to $0.63 and revenue totaled $4.24 billion.

This fourth-largest department store operator has not fallen short of analysts' expectations for earnings since the first quarter of 2011. But the beat in the most recent quarter was by less than two percent. And so far, EPS and revenues are predicted to be up sequentially and year-over-year in the current quarter.

Best Buy (NYSE: BBY), Home Depot (NYSE: HD), Target (NYSE: TGT) and many other retailers are on deck the following week.

And Others

Deere & Company (NYSE: DE). The consensus forecast calls for EPS to be up about four percent year-over-year to $2.72, with sales more than four percent higher to $9.81 billion, for the fiscal second quarter. The company missed consensus EPS expectations in two of the past four quarters. The farm and construction equipment maker is scheduled to report Wednesday before the markets open.

Cisco Systems (NASDAQ: CSCO). Analysts on average expect this networking products maker to report late Wednesday that its per-share earnings ticked up a penny to $0.49, while revenue rose about five percent year-over-year to $12.18 billion, in its fiscal third quarter. But analysts underestimated Cisco's EPS in the previous four quarters.

Take-Two Interactive Software (NASDAQ: TTWO). This producer of Grand Theft Auto and other games is expected to say earnings swung from a year-ago net loss to a profit of $0.23 per share for the fiscal fourth quarter. Revenue is expected to have surged more than 89 percent year-over-year to $280.36 million. The company will share its results Monday after the closing bell.

Computer Sciences (NYSE: CSC), Flowers Foods (NYSE: FLO) and Valspar (NYSE: VAL) are also expected to report year-over-year earnings growth this week. But analysts forecast earnings declines for Agilent Technologies (NYSE: A), Applied Materials (NASDAQ: AMAT), Autodesk (NASDAQ: ADSK) and Jack in the Box (NASDAQ: JACK).


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