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Department Store Stocks Earnings on May 11: M, KSS, DDS
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With the Q1 earnings season drawing to a close, quarterly numbers from most comapnies are already on board. Notably, the majority of the companies have delivered positive surprises, making this earnings season the highest in terms of growth since many years. As per the latest Earnings Preview report of May 5, only about 18% of the S&P 500 members are yet to report their earnings. As per the report, earnings of total S&P 500 companies are expected to improve 12.7% with revenues increasing 6.2%, from the year-ago period.
The report further suggests that out of the 412 S&P 500 companies that have come up with their quarterly numbers, approximately 73.3% reported positive earnings surprise, while 67.7% beat top-line estimates. Notably, the earnings of the companies that have reported so far are up by 14.2% from the year-ago period while revenues increased 7.3%.
The performance of the index is not restricted to a single sector and out of the 16 Zacks sectors, three are expected to witness a decline in earnings this season with Transportation and Autos likely to be the major drags. The Retail-Wholesale sector, which occupies the bottom most position of the Zacks Classified sectors, is anticipated to witness a decline of 2.2% in total earnings while revenues are expected to advance 3.3%.
As of May 5, 42.9% of the S&P 500 companies in the Retail-Wholesale segment have reported earnings. Out of these, 61.1% companies have posted an earnings beat, while 66.7% surpassed revenue estimates.
Department Store stocks forms part of the Retail-Wholesale sector. Bearing these factors in mind, let’s see what awaits the following department stocks when they release their quarterly results on May 11.
Macy's, Inc. (M - Free Report) a leading department store in the U.S is slated to report first-quarter 2017 earnings before the stock market opens. Macy's has an Earnings ESP of 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 35 cents. Further, the company’s Zacks Rank #3 (Hold) was recently downgraded to Zacks Rank #4 (Sell), It is to be noted that we caution against Sell-rated stocks (#4 or 5) going into the earnings announcement, especially when the company is seeing negative estimate revisions. Thus, our proven model does not conclusively show earnings beat for Macy’sthis quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 for this to happen. You may uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Nevertheless, the company posted a positive earnings surprise of 2.5% in the preceding quarter. In order to improve sales, profits and cash flows, the company has been focusing on integration of operations as well as developing eCommerce business and Macy’s Backstage off-price business. However, Macy’s dwindling top-line and bottom-line results remain the primary threat for investors. A competitive retail landscape, a mature domestic market and cautious consumer spending also continue to pose concerns. (Read more: Will Q1 Earnings Hold a Surprise for Macy's Stock?)
Another Department Store stock, Kohl's Corporation (KSS - Free Report) is scheduled to report first-quarter earnings before the markets open. The company has an earnings ESP of +3.70% as the Most Accurate estimate of 28 cents in pegged higher than the Zacks Consensus Estimate of 27 cents. However, the company’s Zacks Rank #4 makes surprise prediction difficult. You can see the complete list of today’s Zacks #1 Rank stocks here.
Kohl's Corporation Price, Consensus and EPS Surprise
The company has outpaced the Zacks Consensus Estimate earnings in three out of the trailing four quarters, with an average positive surprise of 7.98%. However, maintaining the positive earnings streak seems to be challenging given the sluggish top-line performance as well as difficult retail sales scenario. Despite Kohl’s continuous efforts to improve base business, its strategic initiative, ‘Greatness Agenda’ is failing to deliver positive results. (Read more: Will Sluggish Comps Dampen Kohl's Earnings in Q1?).
Now, let’s take a sneak peek at Dillard's, Inc. (DDS - Free Report) , anticipated to release first-quarter earnings report. The company has a Zacks Rank #4 and an earnings ESP of 0.00% since both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at $1.98. In the trailing four quarters, the company posted a negative average earnings surprise of 11.6%.
Dillard’s has been loosing ground lately due to challenges in the apparel retail segment Competition, price volatility and the rapidly changing consumer preferences have impacted the company’s financial performance. Challenging trends in the sector are expected to persist as brick-and-mortar stores continue to lose sheen to the rising online businesses. Nevertheless, Dillard’s position in the sector offers it opportunities in both online and offline businesses. Strategies such as enhancing merchandise assortments and effective inventory management are expected to boost growth across its eCommerce business. (Read more: Is Dillard's Likely to Disappoint in Q1 Earnings?).
The Best & Worst of Zacks
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Department Store Stocks Earnings on May 11: M, KSS, DDS
With the Q1 earnings season drawing to a close, quarterly numbers from most comapnies are already on board. Notably, the majority of the companies have delivered positive surprises, making this earnings season the highest in terms of growth since many years. As per the latest Earnings Preview report of May 5, only about 18% of the S&P 500 members are yet to report their earnings. As per the report, earnings of total S&P 500 companies are expected to improve 12.7% with revenues increasing 6.2%, from the year-ago period.
The report further suggests that out of the 412 S&P 500 companies that have come up with their quarterly numbers, approximately 73.3% reported positive earnings surprise, while 67.7% beat top-line estimates. Notably, the earnings of the companies that have reported so far are up by 14.2% from the year-ago period while revenues increased 7.3%.
The performance of the index is not restricted to a single sector and out of the 16 Zacks sectors, three are expected to witness a decline in earnings this season with Transportation and Autos likely to be the major drags. The Retail-Wholesale sector, which occupies the bottom most position of the Zacks Classified sectors, is anticipated to witness a decline of 2.2% in total earnings while revenues are expected to advance 3.3%.
As of May 5, 42.9% of the S&P 500 companies in the Retail-Wholesale segment have reported earnings. Out of these, 61.1% companies have posted an earnings beat, while 66.7% surpassed revenue estimates.
Department Store stocks forms part of the Retail-Wholesale sector. Bearing these factors in mind, let’s see what awaits the following department stocks when they release their quarterly results on May 11.
Macy's, Inc. (M - Free Report) a leading department store in the U.S is slated to report first-quarter 2017 earnings before the stock market opens. Macy's has an Earnings ESP of 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 35 cents. Further, the company’s Zacks Rank #3 (Hold) was recently downgraded to Zacks Rank #4 (Sell), It is to be noted that we caution against Sell-rated stocks (#4 or 5) going into the earnings announcement, especially when the company is seeing negative estimate revisions. Thus, our proven model does not conclusively show earnings beat for Macy’sthis quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 for this to happen. You may uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Macy's Inc Price, Consensus and EPS Surprise
Macy's Inc Price, Consensus and EPS Surprise | Macy's Inc Quote
Nevertheless, the company posted a positive earnings surprise of 2.5% in the preceding quarter. In order to improve sales, profits and cash flows, the company has been focusing on integration of operations as well as developing eCommerce business and Macy’s Backstage off-price business. However, Macy’s dwindling top-line and bottom-line results remain the primary threat for investors. A competitive retail landscape, a mature domestic market and cautious consumer spending also continue to pose concerns. (Read more: Will Q1 Earnings Hold a Surprise for Macy's Stock?)
Another Department Store stock, Kohl's Corporation (KSS - Free Report) is scheduled to report first-quarter earnings before the markets open. The company has an earnings ESP of +3.70% as the Most Accurate estimate of 28 cents in pegged higher than the Zacks Consensus Estimate of 27 cents. However, the company’s Zacks Rank #4 makes surprise prediction difficult. You can see the complete list of today’s Zacks #1 Rank stocks here.
Kohl's Corporation Price, Consensus and EPS Surprise
Kohl's Corporation Price, Consensus and EPS Surprise | Kohl's Corporation Quote
The company has outpaced the Zacks Consensus Estimate earnings in three out of the trailing four quarters, with an average positive surprise of 7.98%. However, maintaining the positive earnings streak seems to be challenging given the sluggish top-line performance as well as difficult retail sales scenario. Despite Kohl’s continuous efforts to improve base business, its strategic initiative, ‘Greatness Agenda’ is failing to deliver positive results. (Read more: Will Sluggish Comps Dampen Kohl's Earnings in Q1?).
Now, let’s take a sneak peek at Dillard's, Inc. (DDS - Free Report) , anticipated to release first-quarter earnings report. The company has a Zacks Rank #4 and an earnings ESP of 0.00% since both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at $1.98. In the trailing four quarters, the company posted a negative average earnings surprise of 11.6%.
Dillard's, Inc. Price, Consensus and EPS Surprise
Dillard's, Inc. Price, Consensus and EPS Surprise | Dillard's, Inc. Quote
Dillard’s has been loosing ground lately due to challenges in the apparel retail segment Competition, price volatility and the rapidly changing consumer preferences have impacted the company’s financial performance. Challenging trends in the sector are expected to persist as brick-and-mortar stores continue to lose sheen to the rising online businesses. Nevertheless, Dillard’s position in the sector offers it opportunities in both online and offline businesses. Strategies such as enhancing merchandise assortments and effective inventory management are expected to boost growth across its eCommerce business. (Read more: Is Dillard's Likely to Disappoint in Q1 Earnings?).
The Best & Worst of Zacks
Today you are invited to download the full, up-to-the-minute list of 220 Zacks Rank #1 "Strong Buys" free of charge. From 1988 through 2015 this list has averaged a stellar gain of +25% per year. Plus, you may download 220 Zacks Rank #5 "Strong Sells." Even though this list holds many stocks that seem to be solid, it has historically performed 6X worse than the market. See these critical buys and sells free >>