Retail Earnings Season Winds Down This Week

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Like the summer, the retail
earnings
season is beginning to wind down. Quarterly reports from the likes of
Abercrombie & Fitch Co.ANF
,
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Best Buy Co IncBBY
and
Dollar General Corp.DG
will be among the highlights this week, but there is no clear trend in the consensus forecasts. Also on tap this week are
Avago Technologies LtdAVGO
and
Seadrill LtdSDRL
. Wall Street analysts are looking for year-on-year earnings growth from the semiconductor maker but a bottom line decline from the offshore drilling specialist. Below is a quick look at what is expected from these and some of the week's other most prominent reports.
See also:Say Hello To The Value Plays Consistently Crushing Earnings

Abercrombie & Fitch

This fashion retailer will post -$0.11 earnings per share (EPS) for its fiscal second quarter, if the consensus of 12 Estimize estimates is accurate. That would be down from a profit of $0.19 per share in the same period of last year. Note that the Wall Street estimate is for a net loss of only $0.04 per share. Revenue for the three months that ended in July is predicted to have pulled back from $890.60 million in the year-ago quarter to $797.95 million, says Estimize, which again is more pessimistic than Wall Street. They both overestimated revenue in the previous quarter. Watch for the report before Wednesday's opening bell.

Avago Technologies

The fiscal third-quarter forecast for this Singapore-based company calls for EPS to have jumped from $1.26 in the year-ago period to $2.14. Some 35 percent growth in revenue to $1.74 billion for the three months that ended in July is expected as well, according to a consensus of seven Estimize respondents. Note that both Estimize and Wall Street have underestimated EPS in recent periods. Analysts thus far anticipate revenue will be about 60 percent higher year over year for the full fiscal year. Avago is scheduled to release its results Wednesday after the regular trading session concludes.

Best Buy

When it shares its results early Tuesday, the consensus of 17 Estimize estimates is that this consumer electronics retailer will post earnings of $0.35 per share. That would be down by a dime from in the year-ago quarter. But Best Buy has managed to offer positive surprises in the past few quarters. Revenue for the three months that ended in July will be around 7 percent lower than a year ago to $8.32 billion, if the Estimize survey is correct. Top line results were in line with Estimize expectations in the previous quarter. Wall Street sees a smaller decline in revenue in the current period.

Dollar General

This variety store operator will report per-share earnings of $0.95 for its fiscal second quarter. That comes from just three Estimize respondents but is nearly in line with Wall Street expectations. Dollar General posted EPS of $0.84 back in the first quarter and $0.83 in the year-ago second quarter. The Estimize forecast also calls for revenue to be about 8 percent higher, relative to a year ago, at $5.07 billion for the most recent period. Wall Street's $5.14 billion consensus forecast is a bit more optimistic. Look for the report from this Tennessee-based retailer before markets open on Thursday.

Seadrill

The consensus of 10 estimates for this Bermuda-based driller calls for earnings of $0.63 per share and for revenue to total $1.20 billion for its second quarter, when it reports Thursday morning. That would be down from $0.70 EPS and revenue of $1.22 billion in the same period of last year. However, earnings handily exceeded both Estimize and Wall Street expectations in the previous two quarters. And note that analysts predict a minimal EPS decline year over year but on a stronger drop in revenue in the current quarter. So far, Wall Street expects revenue to be in the black next year.
See also:How To Protect Yourself In A Bear Market

And Others

Among the other retailers expected to report this week, Wall Street anticipates EPS gains from Big Lots, Chico's FAS, DSW, Express, GameStop, Signet Jewelers, ULTA Beauty and Williams-Sonoma, but they foresee smaller profits from Guess? and Tiffany. Net losses are forecast for Aéropostale, Bebe Stores and Children's Place. Elsewhere, Frontline, Royal Bank of Canada and Toronto-Dominion Bank also will show earnings gains, while Autodesk, J.M. Smucker, NQ Mobile and Toll Brothers report smaller EPS, if consensus forecasts are accurate. A net loss is expected from Workday. Keep up with all the latest breaking news and trading ideas by following
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on Twitter.
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Posted In: EarningsNewsPreviewsTrading Ideasabercrombie & fitchavago technologiesbest buydollar generalEarnings ExpectationsSeadrill
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