Expected Earning for the Week Starting on Aug 20


We saw Home Depot and retailers of big box, Walmart claim last week that their sales and earnings have increased in the last quarter and both of them increased their full year EPS guidance. We are now expecting more number of earning reports that are due this week, highlighted by 2nd quarter Best Buy results. On the other hand, companies like Hewlett-Packard and Dell would divulge their results that will highlight most of the earnings made by technology sector in this week. Analysts are not too enthusiastic about them and are anticipating lower EPS and earnings from either of them.

2nd quarter for fiscal 2013 earnings from retailers of consumer electronics, Best Buy are expected to come to $0.31/share, while their revenues summed up to $10.6 billion. This is a down compared to the same time last year, when Best Buy posted $0.47/share and sales revenue of $11.35 billion. Analysts failed to estimate EPS of the company in last two quarters as Best Buy managed to beat their estimates by a whopping 22% in the 1st quarter. The company’s shares have been unfortunately down by 20% in last six months, as per quarterly results Tuesday before the opening of the market.

Analysts will also expect earnings in year-over-year and growth of revenue from Chico’s FAS, rue21, Williams-Sonoma, American Eagle Outfitters, Fred’s and Signet Jewelers, when they come up with their reports this week. Express EPS are expected to remain unchanged compared to last year.

The companies that are expected to report decline in their earnings are DSW, Urban Outfitters, Guess? and But Big Lots. Companies that are expected to show net loss are Tuesday Morning, Pacific Sunwear of California and Barnes & Noble.

The third largest PC vendor in the world is most expected to confirm Tuesday that for a straight second quarter of 2013 fiscal, it had managed earnings of $0.45/share. This would be a decline from $0.50/share recorded by Dell in the same time last year. In last two quarters, we saw the company falling down of EPS estimates by two to three penny/share. Analysts expect the second quarter revenues to come up to around $14.6 billion, which will be 6.3% lower compared to the same quarter a year ago. Revenue went down in the first quarter following an increase soon after.

Dell’s largest competitor, Hewlett-Packard is expected to state that its third quarter profit slid down by 10.9% year-over-year to $0.98/share.


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