Big-Box Earnings Expectations For Best Buy, Target

• Earnings reports from two big-box store chains will be among highlights this week.
• Wall Street analysts expect earnings growth from only one of them.
• However, both have topped consensus earnings forecasts in recent quarters.

Retail earnings season rolls on this week, and among the highlights will be the latest quarterly results from big-box store operators Best Buy Co Inc BBY and Target Corporation TGT.

The Wall Street consensus forecasts call for earnings that are greater than a year ago from the consumer electronics superstore operator, which one analyst predicted during the most recent quarter would continue to see market share gains.

On the other hand, a decline on the bottom line growth is expected from the Minneapolis-based general merchandise giant, relative to the year ago period. Last month, Jim Cramer wasn't impressed by Target's strong growth in online sales.

Best Buy

When this retailer shares its fiscal fourth-quarter results before the opening bell on Wednesday, the analysts on average predict its earnings per share (EPS) will have risen more than 8 percent from a year ago to $1.67. But the $13.62 billion in expected revenue would be the same as last year. Best Buy exceeded consensus EPS estimates by more than 30 percent in the previous two quarters.

The forecast from 63 Estimize respondents is a little more optimistic on the bottom line, with EPS expected to come in at $1.69. That would be the highest level in at least two years. Yet the consensus revenue estimate for the three months that ended in January is $13.58 billion. Estimize has narrowly underestimated the top line in recent quarters.

See also: You Down With ODP? Office Depot Likely To Report An In-Line Q4

Target

Wall Street's consensus forecast calls for EPS to have slipped from $1.52 in the same period of last year to $1.51. The consensus estimate was $1.65 just 60 days ago. The 48 Estimize respondents have a consensus estimate of $1.52 per share for the three months that ended in January. Both estimates are a bit higher than the midpoint of the company's guidance.

Estimize underestimated revenue in the previous quarter, and this time the respondents are looking for $20.78 billion. That would be down from the $21.63 reported in the year ago quarter, and it also compares with the Wall Street consensus forecast of $20.74 billion. Look for Target to share its latest results first thing Tuesday morning.

And Others

Also this week, Wall Street anticipates smaller earnings from Abercrombie & Fitch, American Eagle Outfitters, Kroger and QVC. If the analysts are correct, JD.com will report a net loss.

However, at least some growth on the bottom line is expected at AutoZone, Barnes & Noble, Costco, Dollar Tree, Lowe's, Office Depot and Ross Stores.

The following week, retail earnings reports shrink to a trickle, but keep an eye out for those from Ascena Retail, Express, Michaels Companies, Signet Jewelers and Urban Outfitters.