Insights

U.S. Earnings Analysis – Projections & Insights

18 November 2018  |  NEWS

Take a look at these 7 companies, which are going to announce their earnings in this week.

Summary:

  1.  Best Buy Co., Inc. (NYSE: BBY) are going to release earnings before market open on November 20th, Tuesday.
  2.  Lowe's Companies, Inc. (NYSE: LOW) are going to report earnings before market open on November 20th, Tuesday.
  3. Medtronic plc (NYSE: MDT) are going to release earnings before market open on November 20th, Tuesday.
  4. Target Corporation (NYSE: TGT) are going to report earnings before market open on November 20th, Tuesday.
  5. The TJX Companies, Inc. (NYSE: TJX)  are going to release earnings before market open on November 20th, Tuesday.
  6. The Gap, Inc. (NYSE: GPS) are going to report earnings after market close on November 20th, Tuesday.
  7. Deere & Company (NYSE: DE) are going to release earnings before market open on November 21st, Wednesday.

1. Best Buy Co., Inc.

Best Buy Co., Inc. (NYSE: BBY) are going to release earnings before market open on November 20th, Tuesday.

Consensus EPS is 85¢, and consensus revenue is $9.56 billion.

The company announced Q2 earnings in August as below:

Actual EPS: 91¢ vs. Expected EPS: 83¢

Actual revenue: $9.38 billion vs. Expected revenue: $9.25 billion

Sales growth was up 4.6% year over year.

Enterprise comparable sales was up 6.2% and domestic comparable sales was up 6% year-over-year.

Best Buy is providing the following Q3 financial outlook as below:

EPS: 79-84¢ vs. previous estimation of EPS: 92¢

Revenue: $9.4-9.5 billion vs. previous estimation of $9.48 billion

Enterprise comparable sales growth: 2.5-3.5%

Also, the company announced the following outlook for fiscal 2019:

EPS: $4.95-5.10 vs. previous estimation of EPS: $5.02

Revenue: $42.3-42.7 billion vs. previous estimation of $42.29 billion

Enterprise comparable sales growth: 3.5-4.5%

(Best Buy year to date price chart as of 16 Nov, source from yahoo finance)


2. Lowe's Companies, Inc.

Lowe's Companies, Inc. (NYSE: LOW) are going to report earnings before market open on November 20th, Tuesday.

Consensus EPS is 98¢, and consensus revenue is $17.36 billion.

The company announced Q2 earnings in August as below: 

Actual EPS: $2.07 vs. Expected EPS: $2.02 

Actual revenue: $20.89 billion vs. Expected revenue: $20.79 billion 

Sales growth was up 7.1% year over year.

Comparable sales increased 5.2% compared to estimation of 5.4%. 

Lowe’s announced the following outlook for fiscal 2019: 

EPS: $4.50-4.60 vs. previous estimation of $5.44 

Revenue: $70.6 billion vs. previous estimation of $71.86 billion 

Enterprise comparable sales growth: 3%. 

The company decided to shut down their Orchard Supply Hardware stores as well as decreasing store inventory aggressively while investing in increased depth of high selling items. The business forecast above has reflected the potential impacts of exiting Orchard Supply Hardware. 

Lowe's also named David Denton, chief financial officer of CVS Health, as new CFO to take the role from Marshall Croom. 

Lowe's announced that it is closing 50 underperforming stores from November.

(Lowe's Companies year to date price chart as of 16 Nov, source from yahoo finance)


3. Medtronic plc

Medtronic plc (NYSE: MDT) are going to release earnings before market open on November 20th, Tuesday.

Consensus EPS is $1.15, and consensus revenue is $7.35 billion.

The company announced Q1 earnings in August as below:

Actual EPS: $1.17 vs. Expected EPS: $1.11

Actual revenue: $7.38 billion vs. Expected revenue: $7.24 billion

Sales growth reduced by 0.1% year over year.

EPS is expected to be between $5.10-5.15 in fiscal 2019, compared to previously estimated $5.11

(Medtronic plc year to date price chart as of 16 Nov, source from yahoo finance)


4. Target Corporation

Target Corporation (NYSE: TGT) are going to report earnings before market open on November 20th, Tuesday.

Consensus EPS is $1.11, and consensus revenue is $17.78 billion.

The company announced Q2 earnings in August as below:

Actual EPS: $1.47 vs. Expected EPS: $1.40

Actual revenue: $17.78 billion vs. Expected revenue: $17.33 billion

Sales growth was up 6.9% year over year.

Comparable sales increased by 6.5% compared to 4.2% previously estimated, including foot-traffic growth of 6.4%. Foot traffic sales growth is by far the strongest since Target began reporting traffic in 2008.

Q2 operating income margin rate was 6.4% compared with 6.6% the same period last year. Q2 gross margin rate was 30.3%, compared with 30.4% in 2017, reflecting pressure from higher digital fulfillment costs. 

Target renewed guidance for Q3 EPS in a range of $1.00-1.20, compared with previously estimated $1.09. 

The company also forecasted comparable sales growth to increase by 4.8%. 

The management expected EPS for fiscal year 2019 to settle between $5.30-5.50 rather than previously estimated $5.30.

(Target year to date price chart as of 16 Nov, source from yahoo finance)


5. The TJX Companies, Inc.

The TJX Companies, Inc. (NYSE: TJX) are going to release earnings before market open on November 20th, Tuesday.

Consensus EPS is 61¢, and consensus revenue is $9.5 billion.

The company announced Q2 earnings in August as below:

Actual EPS: $1.17 vs. Expected EPS: $1.05

Actual revenue: $9.33 billion vs. Expected revenue: $8.99 billion

Sales growth was up 11.6% year over year.

Comparable sales increased 6%, and the company’s pre-tax profit margin was 10.6%.

Gross profit margin for Q2 was 28.9%.

TJX lowered Q3 EPS to a range of $1.18-1.20 from previously estimated $1.23. The company also forecasted comparable sales growth to be between 2-3%.

The company expected EPS for fiscal year 2019 under new guidance to be $4.83-4.88 from previously estimated of $4.85.

(TJX year to date price chart as of 16 Nov, source from yahoo finance)


6. The Gap, Inc.

The Gap, Inc. (NYSE: GPS) are going to report earnings after market close on November 20th, Tuesday.

Consensus EPS is 68¢ and consensus revenue is $4 billion.

The company announced Q2 earnings in August as below:

Actual EPS: 76¢ vs. Expected EPS: 72¢

Actual revenue: $4.08 billion vs. Expected revenue: $4.02 billion

Sales growth was up 7.5% year over year.

Same store sales increased 2% beating estimated of 1.6%.

The company unchanged the guidance of EPS in a range of $2.22-2.70 for fiscal year 2019, from market estimation of $2.56.

(The Gap year to date price chart as of 16 Nov, source from yahoo finance)

7. Deere & Company

Deere & Company (NYSE: DE) are going to release earnings before market open on November 21st, Wednesday.

Consensus EPS is $2.45 and consensus revenue is $8.63 billion.

The company announced Q3 earnings in August as below:

Actual EPS: $2.59 vs. Expected EPS: $2.75

Actual revenue: $9.29 billion vs. Expected revenue: $9.18 billion

Sales growth was up 35.9% year over year.

The company lowered new guidance for Q4 revenue to $8.58 billion from previous estimation of $8.82 billion.

(Deere & Company year to date price chart as of 16 Nov, source from yahoo finance)


This report was contributed by Takao Hirose, Contextual Investments, LLC., published on 19/11/2018.

Read Also:

Company Earnings Announcement to Watch (2/25/2019 - 3/1/2019)

Amazon.com Earnings Analysis

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