Week in Preview: Macy's, Priceline, Others Kick Off Retail Earnings

This week, JCPenney JCP, Kohl's KSS and Macy's M are the first of the major retailers to report results for the most recent quarter. Macy's launched an American Express credit card and increased its mobile presence during the fiscal fourth quarter. The analysts surveyed by Thomson Reuters forecast Macy's earnings for that period come to three cents per share, which compares to a net loss of three cents per share in the same period of last year. The Cincinnati-based department store operator is expected to post revenue of $5.6 billion for the three months that ended in October, which is 5.2% more than a year earlier. For the full year, the forecast calls for earnings of $1.50 per share (+6.7%) and $8.2 billion in revenue (+4.3%). Macy's earnings results have been better than expected in recent quarters by a penny or a few per share. Macy's long-term EPS growth forecast is 8.7% and its forward price-earnings (P/E) ratio is 12.5, which less than the industry average. The dividend yield is 0.8%. Macy's raised its second-half forecasts due to strong same-store sales. The First Call recommendation is to buy the stock and the mean price target is $26.93 per share. Shares reached a 52-week high of $26.03 on Friday and are 29.3% higher than three months ago. More retailers will report the following week, including Abercrombie & Fitch Co. ANF, Home Depot HD, Sears SHLD, Target TGT and Walmart (WMT). Priceline.com Analysts anticipate that Priceline.com PCLN, the online source for name-your-own-price travel, will report on Monday that its third-quarter earnings grew 30.6% year over year to $4.97 per share. During the three months that ended in September, Priceline introduced a new price guarantee, and revenue for that period is predicted to have risen 33.3% to $973.6 million. Analysts also expect better than 25% year-over-year growth of earnings and revenue in the fourth quarter. Earnings results have topped consensus estimates in recent quarters, by as much as 53 cents per share. Priceline's long-term EPS growth forecast is 20.4%, which is higher than those of competitors Expedia EXPE and Orbitz OWW. Its forward P/E ratio is 28.3, but that's less than the industry average. Net cash flow from operations has grown in the past few quarters and the ROE is 42.2%. The consensus recommendation is to buy PCLN. Zacks considered the stock a powerful buy for its momentum. Shares reached a multi-year high of $388.88 at the end of the week, a pop of 78.0% from the beginning of the year. Agilent Technologies Santa Clara, Calif.-based Agilent Technologies A is anticipated to be one of this week's biggest earnings gainers. For a fiscal fourth quarter in which the scientific testing equipment maker won a military contract and continued to offer new products, Agilent is expected to post EPS of 60 cents. Continue reading the article.