Dillard’s, Inc. , Kohl’s Corporation , Nordstrom, Inc. and JC Penney Company Inc are some of the biggest retail companies yet to report quarterly numbers this earnings season.
Following last week’s rout of media stocks, Wall Street is not very upbeat about the retailers. The consumer discretionary space took a severe beating last week, tumbling 2.5 percent, as investors offloaded media stocks amid concerns of falling demand. The same fate might await the retail stocks as these very consumers prefer to stash away their oil savings, rather than spend on discretionary items.
Dillard’s, Kohl’s and Nordstrom report on Thursday followed a day later by J.C. Penney. Here’s what investors can expect:
Dillard’s is all set to release quarterly earnings after the close of trade on Thursday. The consensus is for earnings of 75 cent a share. For the current fiscal, that figure should come in at $8.01, while the next fiscal year should see EPS rising to $8.74.
Shares of Dillard’s, Inc. closed Tuesday at $96.87, and have a 52-week high of $144.21, and a 52-week low of $95.55. Earlier in the week, analysts at JPMorgan downgraded the stock to “underweight” from “neutral” and slashed its price target to $89 from $114 a share.
The retail sector is filled with under-performers, and Kohl’s is among the hardest hit. The company has failed to meet analysts’ revenue projections in five of the last six quarters. The stock suffered a drubbing last quarter after results came in weaker than expected.
For the just ended quarter, analysts expect Kohl’s Corporation to report earnings-per-share of $1.18 on revenue of $4.33 billion that should translate to year-over-year increases of 4.5 percent and 2 percent, respectively. Full year earnings are forecast to increase 6.6 percent y-o-y to $4.52 a share, while sales should rise 2 percent to $19.38 billion.
Nordstrom is scheduled to issue its second quarter results on Thursday. The average analysts’ estimate calls for EPS OF $0.90. The company has set its FY16 guidance at between $3.65-$3.80 EPS.
Shares of Nordstrom, Inc. closed Tuesday at $76.24. The stock has a 52-week low of $64.92 and a 52-week high of $83.16.
J C Penney Company Inc
The discount retailer is in the midst of a long-term turnaround after having suffered huge losses for years. Even as the company appears to be making steady progress, the stock has remained by and large flat since the start of the year. As Penney gets set to release its second-quarter numbers on Friday, investors want more proof that the worst is behind, and that the turnaround will pick up steam going forward.
The consensus of analysts covering J C Penney Company Inc is for a net loss of $0.44 a share on revenue of $2.84 billion, compared to -$0.75 EPS and sales of $2.80 billion in the year-ago period.