5 Stocks To Watch This Week

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Tuesday

Fossil

Upscale watch and fashion brand Fossil (FOSL) is set to report third quarter earnings on Tuesday. Contributing analysts on Estimize are expecting Fossil’s earnings per share to increase by 26 cents (16.5%) compared to the same quarter of last year. Revenues are expected to grow by 9% year over year to $883.61 million.

In the second quarter of the year Fossil saw its net sales of watches increase by 12% while net jewelry sales jumped 19% higher. The Estimize community is expecting total sales growth to slip to 9%, just below the 10-14% revenue growth range reported over the previous past 3 quarters.

Wednesday

Cisco

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Expectations for the networking giant are tame. Contributors on Estimize are expecting total revenue to increase by just under 1% while earnings inch 2 cents per share higher than they came in during the 3rd quarter of last year.

Cisco’s (CSCO) earnings growth has decelerated in 2014 compared to last year, but the company’s results have still managed to come in ahead of the Estimize consensus on the bottom line over the 4 previous quarters. The stock is up roughly 14% this year and like others it has been ripping higher since the the middle of October when turbulent market conditions settled down and the market began to rally.

On Wednesday the Estimize community expects Cisco to edge past the Wall Street consensus by a penny per share on the bottom line and beat by less than 0.5% on revenue.

JCPenney

Distressed retailer JCPenney (JCP) is also set for a Wednesday afternoon report. Unlike Cisco, JCPenney’s stock never recovered from when it got slammed amid market volatility in late September and early October. Shares of the troubled department store company are down 30% from their mid-September highs.

Going into earnings contributing analysts on Estimize are looking for JCPenney to increase its sales by 2.8% compared to the same quarter of last year and lose a lot less money. In the third quarter of 2013 the company reported a loss of $1.81 per share.

This quarter analysts on Estimize are forecasting that the deficit will shrink to 78 cents per share, which is a nickel per share better than Wall Street is giving the company credit for. JCPenney is expected to cut its quarterly loss by about 57% which is a step in the right direction, but clearly this company still has a lot of work to do.

Thursday

Walmart

Over the past 3 quarters profit growth at the world’s largest retailer by revenue has stalled out. In the previous 3 periods earnings have fallen between 3% and 4% each quarter on a year over year basis.

Thursday Wall Street is forecasting that Walmart (WMT) will post another slim profit slide with EPS decreasing from $1.14 in the same quarter of last year to $1.12. However, contributing analysts on Estimize are more optimistic, expecting $1.16 in earnings per share.

US comparable stores sales at Walmart and Sam’s Club locations were completely flat last period excluding fuel sales. When you factor in gasoline same stores were up just 0.1% in the states.

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US store sales were flat last period despite a 0.3% increase in store traffic. The rise in traffic was offset by a 0.3% decrease in the average money spent per customer.

Although US same store stores were flat last quarter, growth in e-commerce and international business helped drive a 3% total revenue increase. 3% growth is in the upper part of the 0% to 4% sales growth range the company has reported over the past 2 years. Thursday analysts on Estimize are looking for Walmart to report slightly ahead of the Street on the top line registering a roughly 3.7% revenue gain.

Friday

BitAuto

Our final pick for earnings releases to watch this week comes from Chinese automotive web company BitAuto (BITA). BitAuto provides information on its website about car pricing, specifications, and reviews and has an advertising business built on top of that. BitAuto makes information about buying a car more accessible to the emerging middle class in the world’s most populous nation, and that’s why the company has been thriving. Year to date the stock is up over 145%.

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Over the previous 2 quarters BitAuto’s EPS has grown 100% and 109% on a year over year basis. On Friday contributing analysts on Estimize are forecasting that the online car company will report profits of 55 cents per share, locking in a 72% bottom line gain.

On the revenue side the Estimize community is looking for $97.72 million. That would be an increase of 57.4% compared to the third quarter of last year which would be an acceleration from the 46% and 53% sales growth reported respectively over the previous 2 periods.

Disclosure: There can be no assurance that the information we considered is accurate or complete, nor can there be any assurance that our assumptions are correct.

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