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Retail Stocks to Report Earnings on Jul 29: AAN, AN, BLMN

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Investors are keeping an eye as the Q2 earnings season has gained momentum; so far unveiling modest improvement compared to the last couple of quarters. Per the latest Zacks Earnings Trends report as of Jul 27, out of the 208 S&P 500 members that have come up with their quarterly numbers, approximately 73.1% have posted positive earnings surprises, while 51.9% beat top-line expectations.

According to the report, earnings for the 208 S&P 500 companies that have reported so far are down 4.7% from the same period last year, while revenues have inched up 0.4%.

The report further projects that earnings will decrease 3.5% from the year-ago period for the total S&P 500 companies, and total revenue will fall 0.4%. We observe that this will be the fifth straight quarter, if the index witnesses a decline in earnings. Well, as the earnings season gradually advances, the scenario would be much more prominent. So, do not be in a rush to count your chickens before they hatch.

The Retail/Wholesale sector is showing some resilience in spite of overseas turmoil, yet-to-recover Chinese economy, fluctuating commodity prices and Fed rate-related controversies that are affecting consumers’ spending behavior to an extent.

Total earnings for the Retail/Wholesale sector are expected to drop marginally by 0.2%, whereas revenues are projected to increase 4.7%.

Among Retail/Wholesale stocks lined up to report, let’s take a sneak peek at three companies.

Aaron's, Inc. (AAN - Free Report) is slated to release second-quarter 2016 results on Jul 29. Last quarter, the company had delivered a negative earnings surprise of 5.3%. Nevertheless, it has outperformed the Zacks Consensus Estimate by an average of 3.4% over the trailing four quarters.

While Aaron's began 2016 on a soft note, it intends to remain focused on developing its omnichannel network and enhancing its e-commerce trends, in an attempt to boost revenues this year. Further, the company continues to achieve growth at its Progressive segment, which has been reporting solid revenues for a while now, thereby making management reasonably confident of this segment’s performance in 2016. Additionally, Aaron’s remains optimistic of expanding business and augmenting shareholder value, given its robust balance sheet. These factors also encouraged management to reiterate its previously issued outlook for 2016.

AARONS INC Price and EPS Surprise

AARONS INC Price and EPS Surprise | AARONS INC Quote

Aaron's carries a Zacks Rank #3 (Hold) and has an Earnings ESP of 0.00%. The Zacks Consensus Estimate for the quarter is pegged at 57 cents (read more: Can Aaron's Q2 Earnings Help Revert it to Solid Trend?).

AutoNation, Inc. (AN - Free Report) is set to release its second-quarter 2016 results on Jul 29. Last quarter, the company posted a positive earnings surprise of 3.23%.

AutoNation is positioned to benefit from the recovery in the auto market, backed by its optimal brand and market mix as well as a disciplined cost structure. Rising average age of cars and trucks in the U.S., a robust consumer credit environment, and an increase in new product offerings from automotive manufacturers are building a strong sales environment. In addition, the company is poised to benefit from the expansion of its business through acquisitions.

AUTONATION INC Price and EPS Surprise

AUTONATION INC Price and EPS Surprise | AUTONATION INC Quote

AutoNation carries a Zacks Rank #3 and has an Earnings ESP of 0.00%. The Zacks Consensus Estimate for the quarter is pegged at $1.05 (read more: What's in Store for AutoNation this Earnings Season?).

Bloomin' Brands, Inc. (BLMN - Free Report) , a casual dining restaurant company, is scheduled to release its second-quarter 2016 results on Jul 29. Our proven model does not conclusively show that Bloomin' Brands is likely to beat earnings estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 for this to happen. This is not the case here as the company’s Earnings ESP is -3.45% and a Zacks Rank #3. Meanwhile, the Zacks Consensus Estimate for second-quarter earnings is pegged at 29 cents. However, we note that in the trailing four quarters, the company has outperformed the Zacks Consensus Estimate by an average of 4.1%.

BLOOMIN BRANDS Price and EPS Surprise

BLOOMIN BRANDS Price and EPS Surprise | BLOOMIN BRANDS Quote

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