Kohl's Third Quarter Earnings Preview

November 05, 2012 | Filed Under » ,
Tickers in this Article » KSS
On Thursday, November 8, 2012, Kohl's (NYSE:KSS) will report its third quarter earnings.



Earnings season is important to investors because it shows how much profit is left in the company's hand after deducting costs from revenue. SEE: How To Decode A Company's Earnings Reports

What to Expect: Analysts are expecting Kohl's to report earnings of 87 cents per share, up 8.7% from a year ago, when the company reported earnings of 80 cents per share.

The consensus estimate, while unchanged in the past month, is down from 89 cents three months ago. For the fiscal year, analysts are expecting earnings of $4.62 per share.

Revenue is expected to exceed last year's figure of $4.38 billion by 2.6% and come in at $4.49 billion for the quarter. Revenue of $19.34 billion is expected for the fiscal year.



Company Performance: Revenue has risen by an average 1.1% year-over-year in the last four quarters. The biggest increase was in the third quarter of the last fiscal year, up 3.7% from the year-earlier quarter.

KSS' P/E ratio is 13.1. Price/earnings ratios (P/E ratios) provide a measure of the relative value of a stock. To determine the P/E ratio, an investor divides the market price of the stock by the earnings-per-share (EPS) of the stock. SEE: Understanding The P/E Ratio



Over the past quarter, the stock price has increased from $51.83 on August 7, 2012 to $54.55. Kohl's' best recent streak was when its price gained $3.48 per share between October 10, 2012 and October 18, 2012.





The Competition: Kohl's operates department stores that offer apparel, footwear and accessories as well as home products and housewares. The company's closest competitor in the retail (department and discount) industry, Macy's (M), will report earnings on November 7, 2012. Analysts are expecting earnings of 28 cents per share for Macy's, down 12.5% from last year's earnings of 32 cents per share. Analysts are less optimistic about Kohl's than about Macy's. Ten out of 14 analysts rate the latter a buy compared to 10 of 17 for the former.



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