Stocks opened higher on Friday after the February jobs report came in ahead of expectations and cooled concerns about rising inflation. But as the latest employment numbers seemingly confirm the overall health of the U.S. economy, recent earnings results in the retail sector have started to raise questions about the state of consumer spending.
For the most part, fourth-quarter earnings season was relatively strong. However, results in the retail space were somewhat mixed. Total earnings growth from the sector’s S&P 500 members broke 9% on the back of 9.6% higher revenues, which is an impressive trend.
But of the 195 companies in our “Retail and Wholesale” that have reported so far, only 56% have managed to surpass earnings estimates—and over the past few days, we have seen disappointing reports from Kroger (KR - Free Report) , Costco (COST - Free Report) , Dollar Tree (DLTR - Free Report) , and more (also read: Kroger Extends Disappointing Week for Retail Sector Earnings Reports).
The traditional earnings season is effectively over, but a few marquee reports—especially in the retail sector—remain to be released. Investors should remember that they can always use the Zacks Earnings Calendar to plan out their schedules for earnings, dividend announcements, and other important financial releases. This handy tool is your perfect one-stop-shop to properly prepare for the market events that will have an impact on your own portfolio.
Today, we’ve made that task even easier for you. Using the Earnings Calendar, we looked ahead to next week and selected most-important retail reports to watch. Make sure to keep an eye on these companies as they prepare to report during the week of March 12!
1. Dick’s Sporting Good’s, Inc. (DKS - Free Report)
Sporting goods retailer Dick’s is scheduled to release its latest quarterly financial results before the market opens on March 13. Dick’s recently grabbed headlines for its decision to change its own gun sales rules in the wake of several mass shootings, but now investors will want to see how the company has actually been performing lately.
DKS is currently sporting a Zacks Rank #2 (Buy). Based on our latest Zacks Consensus Estimate, we expect the company to report adjusted earnings of $1.20 per share, down about 9% year over year. However, total quarterly revenues are expect to improve nearly 10% to touch $2.73 billion.
2. Dollar General Corporation (DG - Free Report)
Discount retail giant Dollar General is slated to post its most recent quarterly earnings report before the opening bell on March 15. The pressure will be on the company after fellow “dollar store” retailer Dollar Tree failed to impress this week. DG is currently holding a Zacks Rank #2 (Buy).
Our latest Zacks Consensus Estimates are calling for adjusted earnings of $1.48 per share and revenues of $6.22 billion. This earnings results would be basically flat year over year, while the revenue projection would mark a 3.5% improvement. The key for Dollar General will be whether or not its core customer base—lower income families—have started to feel a noticeable tax break and have been spending the extra money for shopping purposes.
3. Ulta Beauty Inc. (ULTA - Free Report)
Beauty retailer Ulta is expected to report its latest quarterly financial results after the market closes on March 15. Ulta was a Wall Street darling for most of 2016 thanks to strong comps and EPS growth, but the stock struggled last year as growth rates began to slow a bit. However, the company still has plenty of attractive growth opportunities.
Ulta is holding a Zacks Rank #2 (Buy). According to our latest Zacks Consensus Estimates, the company is expected to report adjusted earnings of $2.77 per share and revenues of $1.94 billion. These results would both represent year-over-year growth of about 23%.
Want more market analysis from this author? Make sure to follow @Ryan_McQueeney on Twitter!
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