For Immediate Release
Chicago, IL- May 20, 2013– Zacks.com releases the list of companies likely to issue earnings surprises. This week’s list includes Target (TGT), Staples (SPLS), Hewlett-Packard (HPQ), Salesforce.com (CRM) and Wal-Mart (WMT).
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Sweeping Up the Last of Q1 Earnings
The Q1 earnings season is effectively over for most of the major sectors, with Retail as the only one that still has a number of major reports still awaited.
As such, Retail has a heavy presence in this week’s earnings reports, including industry heavyweights like Target (TGT) and Staples (SPLS). But we do have couple of bellwether operators from other sectors coming out with results this week, like Hewlett-Packard (HPQ) and Salesforce.com (CRM). In total, we will get Q1 earnings reports from 96 companies this week, including 25 S&P 500 members. By the end of this week, we will have seen Q1 results from 490 members of the S&P 500.
Total Retail sector earnings thus far are up +5.8% from the same period last year on +1.9% higher revenues. The remaining 17 retailers out of the 47 companies in our S&P 500 Retail sector are expected to see total earnings decline by -0.5% on +2.5% higher revenues. This reflects expectations of earnings declines at Target and a few others.
Combining the Retail sector earnings for the 30 companies that have come out with the 17 still to come, the sector’s total earnings in Q1 should be up +4%. This compares to earnings growth rates of +8.1% and +6.1% in 2012 Q4 and Q3, respectively. April same-store sales data for the sector has generally been on the soft side, with industry players citing colder temperatures in April as a reason for light traffic. But it could very well be that the payroll tax changes in January are finally starting to have an effect, as we saw with the Wal-Mart (WMT) report.
We continue to grade the Q1 earnings season as between ‘average’ and ‘below average’ -- it’s definitely not ‘good.’ That said, the overall level of ‘total’ quarterly earnings is at a record level.
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Contact: Sheraz Mian
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