Mixed Earning Expectations for Retail Giants

Looking at the earnings this week, the big retailers stole the focus. Their quarterly reports are one of the most anticipated this week. They are due Tuesday morning.

Home Depot Inc., the big box specialty retailer, is expected to have a strong growth. Home Depot was identified as one of the retails, which could suffer from the proposed border adjustment tax by the new administration during this period.

Macy’s Inc. had a disappointing holiday quarter and their numbers are predicted to decline year over year.

WalMart Stores Inc. consensus forecast is giving out mixed results for this period as the company had outlined their growth goals for jobs for this year.

Some of the expectations from the results are mentioned below.

Macy’s Inc.

According to Estimize, this department store operator is going to have an expected earnings per share of $1.97 in its Q4. This is equal to Wall Street’s consensus estimate. This also is down from previous year’s per share earnings of $2.09. Macy’s also fell short of estimates by EPS in the previous quarter by 58%.

 

Home Depot

According to some Wall Street analysts, this company, which is based in Atlanta, is expected to have a fiscal Q4 profit of $1.33 per share showing a 12 percent gain as compared to the previous year. 113 Estimize’s consensus respondents have earnings set at $1.35 per share. Estimize also came almost exact to the earnings per share results in the past two quarters.

WalMart Inc.

The earnings per share of WalMart, the world’s largest retailer, for the fourth quarter of fiscal 2016, according to the forecast of the Wall Street consensus, is down by 13 percent as compared to the previous year coming to $1.29. For WalMart, the revenue is thought to have edged up to 131.22 billion dollars marginally. Also, the analysts have underestimated the bottom line in the previous five quarters. The revenue projection this time is the highest in the last two years.

Estimize, on the other hand, is a little more optimistic with EPS estimated at $1.32 by consensus of 97 respondents. The revenue is predicted to be $130.75 billion for this quarter.

Other Retailers

The anticipations on other retailers like Foot Locker, TJX Companies and J.C. Penney Companies is to report earnings gains in the current week. But according to analysts, Advance Auto Parts, Genuine Parts, Chico’s FAS, Gap, HSN, Kohl’s, L Brands, Sprouts Farmers Market and Nordstrom might show less earnings as compared to the previous year. And Lumber Liquidators and Wayfair might also have net losses.

Results from retailers like Abercrombie & Fitch, Barnes & Nobel, Best Buy, American Eagle Outfitters, Costco, Lowe’s, Office Depot, Target, Kroger and many other companies are expected in the following week. Let’s hope they show good earnings and revenue to keep their investors interested.

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