Earnings Expectations for the Week of May 20

The start of the retail earnings season last week was a mixed bag. Quarterly results from Walmart WMT, Kohl's KSS and Nordstrom JWN ranged from so-so to disappointing, while J.C. Penney JCP posted a larger-than-expected net loss. Macy's M was the standout, with relatively strong first-quarter results. There are plenty more on the retail earnings front this week. On Tuesday, Home Depot HD is scheduled to report before the opening bell, while rival Lowe's Companies LOW shares its results Wednesday before the markets open. They both are projected to report per-share earnings more than 13 percent, relative to a year ago, to $0.77 for Home Depot and $0.51 for Lowe's. First-quarter revenue for the former is expected to be up about five percent year-over-year to $18.69 billion, while that of the latter crept up more than two percent to $13.45 billion. First-quarter fiscal 2014 earnings from Best Buy BBY are expected to come to $0.25 per share, on revenues of $10.64 billion. But in the same quarter of the previous year, the consumer electronics retailer posted $0.72 EPS and sales of $11.61 billion. The consensus EPS estimate for the quarter has ticked up a penny in the past 60 days, but Best Buy earnings fell well short of expectations in two of the past three quarters. The company is scheduled to share its results early Tuesday. Other specialty retailers expected to report earnings declines this week include Advance Auto Parts AAP, America's Car-Mart CRMT, GameStop GME and Staples SPLS. Analysts are looking for earnings growth from AutoZone AZO, Dick's Sporting Goods DKS, Foot Locker FL, Hibbett Sports HIBB, PetSmart PETM and Williams-Sonoma WSM. First-quarter earnings from Target TGT are forecast to come to $0.87 per share in Wednesday morning's report. That that would be down more than 16 percent from the year-ago period, and note that 60 days ago the consensus estimate was $0.96. Quarterly revenues are predicted to total $16.82 billion, which would be marginally lower year-over-year. For its first quarter of 2013, Abercrombie & Fitch ANF is expected to post a net loss of $0.05 per share, while revenues totaled $941.66 million. That compares to a net loss of $0.25 and $921.22 million in revenue the company reported in the same quarter of last year. Abercrombie had better-than-expected per-share profits in the previous three quarters. Look for the earnings report Friday morning. Other apparel retailers expected to report net losses this week include Aeropostale ARO, Bon-Ton Stores BONT, New York & Company NWY and Pacific Sunwear of California PSUN. The Gap GPS is expected to report Thursday afternoon that for its first quarter it saw a profit of $0.69 per share on $3.68 billion in revenue. That would be up from EPS of $0.47 and revenue of $3.49 billion in the same period of the previous year. And note that 60 days ago that EPS estimate was only $0.56. Analysts are also predicting year-over-year earnings growth from Buckle BKE, L Brands LTD and Urban Outfitters URBN when they report this week. EPS from Saks SKS are expected to be the same as a year ago, while those from Cato CATO, Citi Trends CTRN and Children's Place PLCE and anticipated to have declined. In its report early Thursday, Dollar Tree DLTR is predicted to say that its first-quarter earnings rose more than 12 percent from the year-ago period to $0.57 per share. That consensus EPS estimate has not changed in the past 60 days. This discount retailer's revenues for the quarter are forecast to total $1.87 billion, or more than eight percent higher year-over-year. Earnings growth is also anticipated from this week's quarterly reports from discount retailers Ross Stores ROST, Stein Mart SMRT and TJX Companies TJX. But Gordmans Stores GMAN and Kirkland's KIRK are expected to say their EPS declined by at least half. Aside from retail, the highlight this week may be the fiscal second-quarter report from Hewlett-Packard HPQ. The consensus forecast calls for $0.81 per share and revenues of $28.08 billion. That would be down from the $0.98 EPS and sales of $30.69 billion it posted in the same quarter of the previous year. HP is scheduled to share its results late Wednesday. Analog Devices ADI is also expected to post an earnings decline this week, while earnings growth is anticipated from Intuit INTU and NetApp NTAP. And analysts expect EPS from Campbell Soup CPB and Hormel Foods HRL to be about the same as in the year-ago period, but with some growth in revenues.