Market Overview

Earnings Expectations For The Week Of November 10


If the earnings season seems to be starting to wind down, then it must be time for the big retailers to begin sharing their quarterly results. This will provide a look at where they stood ahead of the crucial holiday shopping season.

From Wal-Mart Stores, Inc. (NYSE: WMT), analysts are looking for a decline in fiscal third-quarter earnings. Also scheduled to step into the earnings spotlight this week are struggling retailer J C Penney Company Inc (NYSE: JCP) and competitor Macy's, Inc. (NYSE: M).

Aside from retailers, this week's earnings highlights will include reports from Cisco Systems, Inc. (NASDAQ: CSCO) and Viacom, Inc. (NASDAQ: VIAB). Consensus forecasts call for flat earnings from the former and solid results from the latter.

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The third-quarter forecast for the world's largest retailer by revenue calls for earnings per share (EPS) to have slipped from $1.14 in the year-ago period to $1.12 in Thursday morning's report. Yet revenues are expected to be more than 2 percent higher to $118.40 billion.

Note that the consensus EPS estimate has ticked down by a penny in the past 60 days, and that EPS did not beat consensus expectations in the previous two quarters. So far, the consensus forecast for the current quarter shows another small slip on the bottom line and marginal revenue growth.

J.C. Penney

In its report late Wednesday, this struggling retailer is expected to say that its net loss narrowed from $1.85 per share in the year-ago quarter to $0.79 for the three months that ended in October. Note that 60 days ago the consensus estimate was for a per-share net loss of $0.75, but the losses were smaller than expected in the past three periods.

Revenues for the third quarter are predicted to be marginally higher to $2.81 billion, relative to the same period of last year. So far the consensus forecast for the current quarter has revenue almost 3 percent higher and a profit of $0.14 per share.


Analysts expect this J.C. Penney rival to say that it had a profit of $0.52 per share in its fiscal third quarter. That would be up from $0.47 in the year-ago period. Revenues are forecast to have risen a little more than 1 percent from a year ago to $6.35 billion for the period that ended in October.

So far, stronger growth on the top and bottom lines are predicted for the holiday shopping period, as well as more than 9 percent EPS growth for the full year, on marginal revenue growth. The Cincinnati-based company is scheduled to share its results Wednesday before the markets open.

Competitors Kohl's and Nordstrom are scheduled to report this week as well. The former will post declines on the top and bottom lines, while the latter will show some growth for both, if the analysts are correct.


When it presents its results late Wednesday, this networking and communications equipment giant is expected to say earnings for the most recent quarter were $0.53 per share, which would be the same as in the year-ago period. Analysts seem certain, as that consensus estimate has not changed in the past 60 days, and the range of individual targets is narrow.

The consensus forecast also calls for revenue to be barely up year-on-year to $12.17 billion for the fiscal first quarter. So far, the estimates for the current quarter suggest some growth on both the top and bottom lines.


The forecast for this entertainment giant calls for earnings of $1.68 per share and for revenue to come to $3.90 billion for its fiscal fourth quarter. In the year-ago period, the company posted earnings of $1.55 per share and revenue totaled $3.65 billion.

For the full-year, analysts are looking for more than 12 percent EPS growth to $5.37, but for revenue to be slightly lower than a year ago to $13.69 billion. Both the quarterly and full-year EPS estimates have shrunk by six cents in the past 60 days. Look for Viacom to share its results Thursday before the opening bell.

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And Others

Others expected to report earnings gains this week include ADT, Applied Materials, Canadian Solar, NPS Pharmaceuticals, WhiteWave Foods and YY. However, IAMGOLD, SeaWorld Entertainment, Silver Wheaton and 3D Systems have forecasts for earnings declines.

Analysts are looking for a net loss from Caesars Entertainment, Dean Foods, Gogo, Halozyme Therapeutics, Merrimack Pharmaceuticals and Plug Power when they share their latest results this week.

In the following week, more retailers take their turns on the earnings stage, including Best Buy, Dollar Tree Stores, Gap, Home Depot, Staples, Target, TXJ Companies and Urban Outfitters.

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