CHICAGO, May 12, 2014 /PRNewswire/ -- Zacks.com releases the list of companies likely to issue earnings surprises. This week's list includes Wal-Mart (NYSE:WMT-Free Report), Macy (NYSE:M-Free Report), Nordstrom (NYSE:JWN-Free Report), Cisco (Nasdaq:CSCO-Free Report) and Deere and Company (NYSE:DE-Free Report).
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Retail Sector Earnings in Focus
The Q1 earnings season has come to an end for 10 of the 16 Zacks sectors, including major ones like Finance, Energy and Basic Materials, with results from almost 91% of the S&P 500 members already out. The Retail sector is the only one that has a significant number of reports still awaited.
As such, Retail has a heavy presence in this week's earnings reports, including industry heavyweights like Wal-Mart (NYSE:WMT-Free Report), Macy's (NYSE:M-Free Report) and Nordstrom (NYSE:JWN-Free Report). But we do have a few bellwether operators from other sectors coming out with results this week as well, like Cisco (Nasdaq:CSCO-Free Report) and Deere and Company (NYSE:DE-Free Report). In total, we will get Q1 earnings reports from 330 companies this week, including 12 S&P 500 members.
Of the 43 Retail sector companies in the S&P 500 index, 22 have already reported Q1 results. It has been a weak performance thus far, with total earnings for these 22 retailers up +3.1% on +6.3% higher revenues, with a very low 36.1% of them beating earnings estimates and a respectable 45.5% coming ahead of top-line expectations.
The remaining 21 retailers are expected to -2.1% lower earnings from the same period last year. Wal-Mart and Macy's total earnings are expected to be little changed from the year-earlier level.
Combining the Retail sector earnings for the 22 companies that have come out with the 21 still to come, the sector's total earnings in Q1 should be barely up (up +0.2%) on +4.3% higher revenues and lower margins. Same-store sales improved markedly in April, with pent up demand following Q1's harsh weather and the Easter shift benefiting the numbers.
The broad trends regarding Q1 earnings are fairly well established by now, and the coming reports are unlikely to change them in any material way. These trends pertain to anemic growth, fewer top-line surprises and continued negative guidance that is prompting estimates for the current period to come down.
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