Big Retail Earnings Precede Opening Bell
It’s a big morning for fiscal Q3 earnings in the Retail space this morning, ahead of the long-awaited earnings report from NVIDIA NVDA today after the closing bell. As we are nearly through the entire S&P 500 for another earnings season, we look for today to be largely affected by earnings results, mostly among specialty retailers.
Dick’s Sporting Goods DKS posted a respectable turnaround from its earnings release a quarter ago, by beating easily on top and bottom lines and tightening guidance for full-year earnings. The company put up $2.85 per share, dispatching the $2.44 in the Zacks consensus and swinging to a positive year over year from earnings of $2.60 per share. Revenues in the quarter came in at $3.04 billion, nicely above the $2.96 billion estimate.
Full-year earnings of between $11.45-12.05 per share in narrower than the company’s previous guide, though the Zacks consensus $11.79 per share remains within it. Shares are up +7% on this earnings release, swinging the stock into positive territory year to date. (It had been wallowing -1%, after the company slashed guidance in August during its previous earnings report.
Abercrombie & Fitch ANF made easy work of estimates on both top and bottom lines this morning: earnings of $1.83 per share was soundly ahead of the $1.14 consensus, and into another orbit from the +$0.01 reported a year ago. Quarterly sales of $1.06 billion outpaced the $977.52 million analysts were looking for. Full-year revenue estimates were raised, along with projected Operating Margins, but the stock is selling off -5% in today’s pre-market. I suppose this can happen when your stock is +205% year to date.
Best Buy BBY shares are also -4% in today’s pre-market, even after the company posted a beat on its bottom line in its Q3 report this morning: earnings of $1.29 per share beat the Zacks consensus by a solid dime, However, $9.76 billion in quarterly revenues was below the $9.88 billion anticipated. Further, its full-year revenue guide is down to a range of $43.1-43.7 billion; analysts had been looking for $44.10 billion. Comps guidance is down to a range of -6% to -7.5%; previously, this had been -4.5% to -6%.
Lowe’s LOW beat on its Q3 bottom line by a penny this morning to $3.06 per share (but off the year-ago’s $3.27 per share), although sales of $20.47 billion in the quarter missed expectations by -2.4%. The company mentioned in its press release that cooling demand in home improvement — especially DIY, where Lowe’s holds a larger share than rival Home Depot HD — is helping lead to slight downward revisions on full-year guidance for both earnings and sales.
Early traders look to be booking profits so far this morning, after a five-day winning streak for both the Nasdaq and S&P 500. We had started pre-market trading slightly higher, but have since given way: -60 points on the Dow, -12 on the S&P, -70 on the Nasdaq and -12 points on the Russell. Perhaps Existing Home Sales later this morning or the minutes from the most recent Fed meeting at 2pm ET this afternoon will bring a more positive trading environment.
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Best Buy Co., Inc. (BBY) : Free Stock Analysis Report
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The Home Depot, Inc. (HD) : Free Stock Analysis Report
DICK'S Sporting Goods, Inc. (DKS) : Free Stock Analysis Report
