Market Overview

Kohl's Earnings Outlook

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Kohl's (NYSE: KSS) announces its next round of earnings this Tuesday, November 17. Here is Benzinga's look at Kohl's Q3 earnings report.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Based on management's projections, Kohl's analysts modeled for a loss of $0.45 per share on sales of $3.84 billion. In the same quarter last year, Kohl's reported EPS of $0.74 on revenue of $4.62 billion.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

The Wall Street consensus estimate for earnings would represent a 160.81% decrease for the company. Revenue would have fallen 16.97% from the same quarter last year. Here is how the Kohl's reported EPS has stacked up against analyst estimates in the past:

Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2019
EPS Estimate -0.83 -1.75 1.88 0.86
EPS Actual -0.25 -3.20 1.99 0.74
Revenue Estimate 3.09 B 2.16 B 6.52 B 4.40 B
Revenue Actual 3.41 B 2.43 B 6.83 B 4.62 B

Stock Performance

Over the last 52-week period, shares are down 46.62%. Given that these returns are generally negative, long-term shareholders won't be happy going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Kohl's is scheduled to hold the call at 09:00:00 ET and can be accessed here.

 

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Posted-In: Earnings