S&P 500 Earnings Preview – Retailers Headline Wednesday’s Earnings Releases
Retailers again are the headliners on Wednesday. There is a clear difference between companies that are experiencing successful e-commerce sales and those who are not.
Best Buy Co.
Best Buy (BBY) is scheduled to release financial results on Wednesday, May 20. The electronic retail giant is expected to report earnings of $0.60 per share on 8.35 billion in revenue. This compares to 2,75 per share in the quarter prior. Earnings forecasts have declined more than 50% over the last 30-days, which could make it easy for Bestbuy to beat. Growth estimates are expected to contract by 41.2%.
The stock price has recaptured most of the losses that it experienced in March, and is poised to test the highs near $91 per share. On a positive earnings result, if prices close at a fresh 52-week high, the trend is likely to persist, making BBY a buy.
Macy’s (M) the retail company is facing heavy losses and has lost more than 70% of its value since February. The company is scheduled to release financial results on Wednesday, May 20. The company is expected to lose -1.22 per share on $3.29 billion in revenue. This compares to $1.96 in earnings in the quarter prior. Analyst forecasts of earnings have declined $0.52 during the past 30-days. Growth estimates are for a decline of 377%.
The stock price broke down in March and has not rebounded as the company considers bankruptcy. Any investment is likely to be a long slog.
TJX Companies (TJX) is expected to release financial results on Wednesday, May 20. The company is expected to earn -$0.15 per share on $5.17 billion in revenues. This compares to $.77 in earning in the prior quarter. Earnings forecasts have declined by more than $.39 per share over the last 30-days.
Most of the TXJ stores were closed during the US quarantine. Its customers are generally middle-income customers, that have lost jobs over the past 8-weeks. The shares are unlikely to see a positive upside until a vaccine is released.