We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Kohl's (KSS) to Report Q3 Earnings: What's in the Cards?
Read MoreHide Full Article
Kohl's Corporation (KSS - Free Report) is likely to post declines for both the top and bottom lines in its third-quarter fiscal 2020 results on Nov 17. The Zacks Consensus Estimate for fiscal third-quarter loss has remained unchanged in the past 30 days at 48 cents per share. This suggests a significant deterioration from the earnings of 74 cents registered in the year-ago quarter. Notably, this department store chain has a trailing four-quarter negative earnings surprise of 3.3%, on average.
The consensus estimate for quarterly revenues is pegged at $4.06 billion, which calls for a decline of 12.3% from the prior-year quarter.
Kohl’s has been witnessing rising selling, general and administrative expenses for a while now. Incidentally, as a percentage of total revenues, SG&A expenses expanded 220 basis points year over year to 30.8% during the fiscal second quarter. Also, in the last earnings call, management highlighted that it expects gross margin to be under pressure, due to higher shipping costs as Kohl’s predicts digital penetration to have been high along with an intense promotional environment.
The company expects the overall retail industry and its business to be affected by the impact of the coronavirus pandemic in 2020. Also, Kohl’s had highlighted some concerns regarding a sluggish back-to-school selling season in the wake of the pandemic during the fiscal second-quarter earnings call. Nevertheless, the company is benefiting from a solid online business, especially amid the pandemic. Further, management is undertaking actions to curb expenses amid the crisis.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for Kohl’s this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Kohl’s currently carries a Zacks Rank #3 and has an Earnings ESP of +6.25%.
More Stocks With Favorable Combinations
Here are some more companies that you may want to consider as our model shows that these also have the right combination of elements to post an earnings beat.
DICK’S Sporting Goods (DKS - Free Report) currently has an Earnings ESP of +18.57% and holds a Zacks Rank of 3.
Costco Wholesale (COST - Free Report) currently has an Earnings ESP of +1.48% and carries a Zacks Rank #3.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.3% per year.
These 7 were selected because of their superior potential for immediate breakout.
Image: Bigstock
Kohl's (KSS) to Report Q3 Earnings: What's in the Cards?
Kohl's Corporation (KSS - Free Report) is likely to post declines for both the top and bottom lines in its third-quarter fiscal 2020 results on Nov 17. The Zacks Consensus Estimate for fiscal third-quarter loss has remained unchanged in the past 30 days at 48 cents per share. This suggests a significant deterioration from the earnings of 74 cents registered in the year-ago quarter. Notably, this department store chain has a trailing four-quarter negative earnings surprise of 3.3%, on average.
The consensus estimate for quarterly revenues is pegged at $4.06 billion, which calls for a decline of 12.3% from the prior-year quarter.
Kohls Corporation Price and EPS Surprise
Kohls Corporation price-eps-surprise | Kohls Corporation Quote
Factors to Note
Kohl’s has been witnessing rising selling, general and administrative expenses for a while now. Incidentally, as a percentage of total revenues, SG&A expenses expanded 220 basis points year over year to 30.8% during the fiscal second quarter. Also, in the last earnings call, management highlighted that it expects gross margin to be under pressure, due to higher shipping costs as Kohl’s predicts digital penetration to have been high along with an intense promotional environment.
The company expects the overall retail industry and its business to be affected by the impact of the coronavirus pandemic in 2020. Also, Kohl’s had highlighted some concerns regarding a sluggish back-to-school selling season in the wake of the pandemic during the fiscal second-quarter earnings call. Nevertheless, the company is benefiting from a solid online business, especially amid the pandemic. Further, management is undertaking actions to curb expenses amid the crisis.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for Kohl’s this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Kohl’s currently carries a Zacks Rank #3 and has an Earnings ESP of +6.25%.
More Stocks With Favorable Combinations
Here are some more companies that you may want to consider as our model shows that these also have the right combination of elements to post an earnings beat.
Best Buy (BBY - Free Report) currently has an Earnings ESP of +14.92% and carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
DICK’S Sporting Goods (DKS - Free Report) currently has an Earnings ESP of +18.57% and holds a Zacks Rank of 3.
Costco Wholesale (COST - Free Report) currently has an Earnings ESP of +1.48% and carries a Zacks Rank #3.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.3% per year.
These 7 were selected because of their superior potential for immediate breakout.
See these time-sensitive tickers now >>