Earnings Preview: HD, PBR, TGT, ANF, WMT

Published on Monday, 14 May 2012 22:14 Written by Todd Shriber

First-quarter earnings seasons is drawing to a close and while that may be a good thing in the eyes of some investors, there are still a few marquee names left to report that have market-moving potential. This week, two Dow components report earnings along with some big retailers and at least well-known international stock. Here are some of the reports investors will want to stay abreast of in the week ahead.

Home Depot (NYSE: HD):

Before the bell Tuesday, the Dow component is expected to post first-quarter EPS of 65 cents. The EPS estimate has risen four cents in the past 60 days. And analysts anticipate revenues for the quarter will have jumped 6.6% to $17.9 billion.

The largest U.S. home improvement retailer has been one of the Dow’s best-performing stocks this year and despite recently pulling back from a multi-year high, the uptrend remains in tact. Bullish guidance for the second half of this year would go a long way toward cement Home Depot’s leadership status.

Petrobras (NYSE: PBR):

The Brazilian state-controlled oil giant is expected to deliver first-quarter results on Tuesday, but the report was originally scheduled for May 11. The company cited an unidentified scheduling conflict for delaying the report, but past results aren’t the issue here. What’s important is whether or not Petrobras has anything encouraging to say regarding its outlook because the stock touched a new 52-week low on Monday and traded below $20 for the first time since 2008.

Target (NYSE: TGT):

Target is expected to announce that its first-quarter earnings came to $1.01 per share on revenues of $16.8 billion. That would be up from $0.99 per share and $15.9 billion in the same period of last year. Target has fallen short of consensus EPS estimates in only one of the past ten quarters, according to Benzinga. The discount retailer reports Wednesday before the open.

Abercrombie & Fitch (NYSE: ANF):

While Abercrombie’s first-quarter EPS is expected to have fallen by almost 93% to 2 cents a share, analysts on average expect first-quarter revenues to be 13.7% higher than a year ago to $951.3 million. Again, outlook here is critical. Given Abercrombie’s price points and slack employment among its key age demographics, shoppers might be holding back on buying clothes at Abercrombie, particularly when comparable can be had elsewhere for lower prices.

Wal-Mart (NYSE: WMT):

The Dow component and the world’s largest retailer is expected to post a profit of $1.04 a share on sales of $110.5 billion for the first quarter. The EPS estimate has changed in the past two months despite the controversy faced by the company in Mexico. Investors will be eagerly waiting for an update from management regarding the Mexican bribe imbroglio. Remember, Wal-Mart has missed estimates in the past two quarter.