Wall Street is likely gearing for a chill-out this week, and the spotlight will fall on retailers. As Consumer spending accounts for more than two-thirds of all economic activity in the U.S., signs of stronger consumer spending or sanguine projections from retailers may stimulate hope that the recession is receding.
May 18
Multimedia entertainment retailer Hastings Entertainment Inc. (HAST) will display first-quarter results before market opens on May 18. The company projects 2009 net income to range between $3.8 million and $4.3 million and earnings per share in the range of $0.40 - $0.45. Comparable store revenue for 2009 is expected to decline in low single digit. In the year-ago period, the company reported earnings of $0.28 per share on revenues of $131.9 million.
Most recently, Home improvement retailer Lowe's Companies (LOW) reaffirmed its prior earnings forecast of $0.23 - $0.27 per share for the first quarter, with total sales still projected to range from a decline of 3% to an increase of 1%. Wall Street analysts have a consensus earnings estimate of $0.25 per share on revenues of $11.62 billion for the quarter. The first-quarter results are due to be released on May 18.
Clothing retailer American Apparel Inc. (APP), Dr. Reddy's Laboratories Ltd. (RDY) are among others to roll out quarterly results on Monday.
May 19
Personal computer maker Hewlett-Packard Co. (HPQ) recently reaffirmed its second quarter earnings outlook, excluding one-time charge, between $0.84 and $0.86 per share. Analysts are looking for earnings of $0.85 per share on revenues of $27.40 billion for the second quarter, which is set to be reported after market closes on May 19. In the year-ago period, the company posted earnings $0.87 per share on non-GAAP basis, and revenues of $28.3 billion.
In addition, HP has also filed an appeal in a patent dispute with Cornell University and the Cornell Research Foundation. Paolo, Alto-based HP noted that it would be increasing its reserve to reflect the latest developments in the case, and expects to record a charge of $0.01 - $0.02 per share for the second quarter of fiscal year 2009.
Home improvement retailer Home Depot Inc. (HD) will publish first-quarter results before market opens on May 19, with analysts expecting earnings of $0.28 per share on revenues of $15.79 billion. The company expects 2009 earnings per share from continuing operations to decline about 7%, with total sales decreasing about 9% and forecast comparable sales in high single-digit negative. In the year-ago period, the company earned adjusted earnings of $0.41 per share on sales of $17.9 billion.
UK-based telecommunications giant Vodafone Group Plc (VOD) will broadcast fourth-quarter results before market opens on May 19. The company boosted fiscal 2009 adjusted operating profit outlook in the range of GBP 11.5 billion - GBP 12.0 billion, versus the prior issued guidance range of GBP 11.0 billion - GBP 11.5 billion. Full year revenue is now projected to range between GBP 40.6 billion and GBP 41.5 billion, up from prior forecast range of GBP 38.8 billion - GBP 39.7 billion.
Apparel maker Phillips-Van Heusen (PVH) expects first-quarter GAAP earnings to range between $0.33 and $0.43 per share and non-GAAP earnings in range of $0.40 - $0.50 per share, which excludes $6 million of pre-tax costs associated with the company's restructuring initiatives. GAAP revenues are now projected to be in the range of $530 million - $540 million. The New York-based Phillips-Van Heusen is likely to expound first-quarter results on May 19, with analysts forecasting earnings of $0.47 per share on revenues of $537.31 million.
Medical device maker Medtronic Inc. (MDT), department store operator Saks Inc. (SKS), off-price retailer TJX Companies Inc. (TJX) are lined up to reap quarterly results on Tuesday.
May 20
For a quarter that saw Deere & Co. (DE) recalling 68 laid-off employees due to increased orders for some construction products, analysts are estimating earnings of $1.09 per share on revenues of $6.63 billion. The second-quarter results are due to be released before market opens on May 20. The agriculture and forestry product maker's equipment sales are projected to be down about 9% for the second quarter. In the year-ago period, the company reported earnings of $1.74 per share on net sales and revenues of $8.097 billion.
The company trimmed its fiscal 2009 net income forecast to about $1.5 billion from previous forecast of $1.9 billion. Further, Deere said its outlook for the coming year remains unusually uncertain, especially with respect to foreign exchange, and the outlook's impact on the company's sales and earnings is difficult to assess.
Financial software developer Intuit Inc. (INTU) last month reiterated its prior revenue guidance in the range of $1.38 billion - $1.46 billion for the third quarter, which is slated to be reported after market closes on May 20. Wall Street analysts have a consensus revenue estimate of $1.60 per share on revenues of $1.42 billion. In the year-ago period, the company posted non-GAAP earnings of $1.39 per share on revenues of $1.31 billion. The company also backed its previously issued revenue forecast of $3.13 billion - $3.25 billion for fiscal 2009.
General merchandise and food discount retailer Target Corp. (TGT) will handout first-quarter results before market opens on May 20, with analysts projecting earnings of $0.59 per share on revenues of $14.81 billion. Earnings for the year-ago period were $0.74 per share and revenues totaled $14.8 billion in 2008.
While releasing April comparable store sales figures, Target said, "Overall, retail segment financial performance was significantly better-than-expected, and the credit card segment performed in line with our prior guidance. As a result, we expect first quarter earnings per share results to be well above the current median First Call estimate of 52 cents."
Luxury homebuilder Toll Brothers Inc. (TOL) is set to release second-quarter results before market opens on May 20, with analysts expecting a loss of $0.33 per share on revenues of $386.74 million. In the year-ago period, the company generated adjusted earnings of $0.49 per share on revenues of $818.8 million. Citing numerous uncertainties prevailing in the construction industry, the company said it is difficult to forecast for the rest of the year, and refrained from providing earnings guidance for fiscal 2009.
Other prime players to tag along with the retail giants in releasing financial results on Wednesday include auto parts retailer Advance Auto Parts Inc. (AAP), Women's specialty retailer AnnTaylor Stores Corp. (ANN), Warehouse club operator BJ's Wholesale Club Inc. (BJ), Defense electronics company Elbit Systems Ltd. (ESLT), Investment management service provider Eaton Vance Corp. (EV), Pet products and service provider PetSmart (PETM).
May 21
Teen apparel retailer Aeropostale Inc. (ARO) currently projects first-quarter earnings to be about $0.46 per share, compared to the previously estimated earnings of $0.32 per share. For the first quarter, which is due to be reported after market closes on May 21, analysts are forecasting earnings of $0.47 per share on revenues of $403.11 million. In the year-ago period, the company fetched earnings of $0.26 per share on net sales of $336.3 million.
Design software solutions provider Autodesk Inc. (ADSK) recently confirmed its first-quarter guidance, expecting GAAP loss to be in the range of $0.20 - $0.08 per share. On a non-GAAP basis, the company continues to project earnings between $0.00 and $0.12 per share. Quarterly revenues are still estimated to be in the range of $400 million - $440 million. Autodesk will churn out first-quarter results on May 21, with analysts forecasting earnings of $0.08 per share on revenues of $419.07 million. In the year-ago period, the company posted non-GAAP earnings of $0.50 per share on total net revenues of $598.8 million.
In mid-April, Video game and entertainment software retailer Gamestop Corp. (GME) reiterated its first quarter and fiscal 2009 earnings forecast, citing strong sales of new video games and the launch of Nintendo DSi. The company reaffirmed first-quarter earnings in a range of $0.40 - $0.42 per share, an increase of 5%-10% from the prior-year quarter. For fiscal year 2009, GameStop still expects earnings per share to rise 18%-22%. Gamestop will relay first-quarter results before market opens on May 21, with analysts estimating earnings of $0.42 per share on revenues of $1.99 billion. In the year-ago period, the company posted earnings of $0.37 per share on sales of $1.81 billion.
Specialty retailer Gap Inc. (GPS) will post first-quarter results at 4:00 pm ET on May 21, with analysts projecting earnings of $0.30 per share on revenues of $3.11 billion. The company expects first-quarter GAAP earnings to range between $0.29 and $0.30 per share. In the year-ago period, the company posted earnings of $0.34 per share on net sales of $3.38 billion.
Meat producer Hormel Foods Corp. (HRL) will fork out second-quarter results before market opens on May 21, with Wall Street analysts having a consensus earnings estimate of $0.50 per share on revenues of $1.68 billion. In the prior year period, the company earned $0.56 per share on sales of $1.59 billion. While releasing first-quarter results, Hormel Foods confirmed its fiscal 2009 earnings guidance of $2.15-$2.25 per share. However, the company expects continued challenges to its business due to the turbulent economy.
Buckle Inc. (BKE) will announce dollars-and-cents details for the first-quarter on May 21, with analysts expecting earnings of $0.50 per share on revenues of $195.36 million. In the year-ago period, the company posted earnings of $0.63 per share on net sales of $160.3 million. Analyst Edward Yruma of KeyBanc Capital said Buckle has posted exemplary sales results in April, but peak operating margins, and a slowdown in the men's business could cause the company to underperform. Buckle posted double-digit growth in April same store sales for the 21st month in a row. Same store sales for April rose 18.2%, while net sales rose 25.6% to $59.1 million from $47 million last year.
Bookseller Barnes and Noble Inc. (BKS) will read out first-quarter results before market opens on May 21, with analysts expecting a loss of $0.15 per share on revenues of $1.10 billion. The New York-based Fortune 500 company expects to incur a first-quarter loss of $0.10 - $0.20 per share, with comparable store sales in its namesake stores declining between 6% and 9%. In the prior year period, the company incurred a loss of $0.04 per share on sales of $1.2 billion.
For fiscal 2009, Barnes and Noble hacked its earnings forecast to a range of $0.95 - $1.25 per share from the prior outlook range of $1.30 - $1.60 per share. Comparable store sales at Barnes & Noble stores are expected to drop between 4% and 6% for the full year.
Specialty retailer Children's Place Retail Stores Inc. (PLCE) is due to publish first-quarter results on May 21, with analysts forecasting earnings of $0.75 per share on revenues of $401.90 million. In the year-earlier period, the company reported earnings from continuing operations of $0.66 per share on net sales of $400.2 million. The company expects first-quarter earnings from continuing operations to be in the range of $0.75 - $0.80 per share, and adjusted earnings from continuing operations are estimated to range between $0.70 and $0.75 per share.
Apparel and home accessories retailer Ross Stores Inc. (ROST) will publicize first-quarter results on May 21, with Wall Street analysts having a consensus earnings estimate of $0.72 per share on revenues of $1.66 billion. In the prior year period, the company earned $0.60 per share on sales of $1.56 billion. As a result of better-than-expected merchandise gross margin and tight cost control, Ross Stores boosted its first quarter earnings forecast to a range of $0.71 - $0.72 per share, from the previously communicated earnings guidance of $0.68 - $0.70 per share.
As earnings wind down, more statistics will be available on the winners and the losers of the season. Wall Street is hardly out of the woods, yet corporate earnings this quarter was slightly better than in the recent past, triggering a faint hope of better times lying ahead.
For comments and feedback: editorial@rttnews.com