24/7 Wall St. has put together a preview of some of the major companies reporting their quarterly results this week. We are just closing out the earnings season in which most major companies reported and set a direction for the market. We have included the consensus earnings estimates from Thomson Reuters and the stock price and trading history, as well as added some additional color on each.
Be advised that the earnings and revenue estimates may change ahead of the formal reports, and some companies may change reporting dates as well.
Wal-Mart
Wal-Mart Stores Inc. (NYSE: WMT) will share its most recent quarterly results on Tuesday. The consensus estimates call for earnings per share (EPS) of $1.13 and $119.80 billion in revenue. Recently Wal-Mart shares have crept closer to their 52-week low. The move is unusually dispiriting for shareholders in a market that continues to make new highs, and just before earnings. The question has become not whether Wal-Mart can do better now, but whether it can do better in the next few years.
Shares were at $72.39 at the close on Friday, in a 52-week trading range of $70.36 to $90.97. The stock has a consensus analyst price target of $80.00.
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Home Depot
Home Depot Inc. (NYSE: HD) is scheduled to reveal its fiscal second-quarter results on Tuesday. The consensus estimates call for $1.71 in EPS, as well as $24.69 billion in revenue. The company announced that it had reached a definitive agreement to acquire Interline Brands, a distributor and direct marketer of broad-line maintenance, repair and operations products. Home Depot is paying $1.625 billion in cash for privately held Interline, and the companies expect the deal to close by November 1. Home Depot said it expects Interline to add to its bottom line earnings in fiscal year 2015, which ends in January of 2016.
Shares were trading at $119.75 on Friday’s close. The consensus price target is $124.57. The stock has a 52-week trading range of $82.85 to $120.14.
Staples
Staples Inc. (NASDAQ: SPLS) is set to report its fiscal second-quarter results on Wednesday. The analysts’ consensus estimates call for EPS of $0.12 and $4.96 billion in revenue. As 2015 is about two-thirds of the way through, the transaction between Staples and Office Depot is about to come to a close as well. Under the terms of the agreement, Office Depot shareholders will receive at closing $7.25 in cash and 0.2188 of a share in Staples stock for each Office Depot share.
Shares were changing hands at $14.23 on Friday’s close. The consensus price target is $18.36, and the stock has a 52-week trading range of $10.82 to $19.40.
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Target
Target Corp. (NYSE: TGT) is expected to report its fiscal second-quarter results on Wednesday. The consensus analyst estimates call for $1.11 in EPS and revenue of $17.40 billion. The company announced a dividend hike back in June that will be payable in September. Target increased its dividend by 7.7% to a quarterly $0.56 per share, or an annual $2.24 per share. The company times its dividend hike news around the annual meeting in June, but investors have to be patient after the news because they do not get paid out until the fall. The 2014 annual dividend hike was by more than 20%, but 2015 expectations may have to be a bit tempered.
Shares of Target ended the week at $79.35. The consensus price target is $83.48. The 52-week trading range is $57.75 to $85.81.
Hewlett-Packard
Hewlett-Packard Co. (NYSE: HPQ) is set to share its latest quarterly earnings on Thursday. The consensus estimates call for $0.85 in EPS and $25.6 billion in revenue. This old-school tech stock has been sold off all year as investors have felt that the PC slowdown in sales could continue to hurt earnings. The stock is down a whopping 28% year to date and trades at a very low 7.9 times 2015 estimated earnings. Some Wall Street analysts feel that weak PC demand could continue to negatively impact revenue and free cash flow at the company. The recent decline in the stock may represent investors already discounting what could be a very so-so fiscal third quarter.
Shares were at $28.71 on Friday’s close, in a 52-week trading range of $28.38 to $41.40. The stock has a consensus analyst price target of 490.12.
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Salesforce.com
Salesforce.com, Inc. (NYSE: CRM) is set to report its fiscal second-quarter results on Thursday. The analysts’ consensus estimates call for EPS of $0.18 and $1.60 billion in revenue. This company has been the momentum stock trader’s dream over the past few years as the demand for customer relationship management software has skyrocketed. Salesforce trades mostly in line with its fast organic SaaS peer group, which many see as having the largest growth rate in 2015, and some feel the company should trade at a premium to the group. In the most recent earnings report, the company posted year-over-year billings growth way above estimates and saw margins expand by 1.75%. Many Wall Street analysts see the company’s growing portfolio of Enterprise-class solutions as not only enhancing the brand, but helping to achieve access into bigger companies.
Shares of Salesforce.com were changing hands at $72.99 as last week came to a close. The consensus price target is $72.58, and the stock has a 52-week trading range of $51.04 to $78.46.
Deere
Look for Deere & Co. (NYSE: DE) to share its latest quarterly earnings on Friday. The consensus estimates call for $1.42 in EPS on $7.21 billion in revenue. This company has seen some headwinds from the strong dollar, but it remains a very solid long-term buy. It manufactures and distributes agriculture, construction and forestry equipment worldwide. The company’s Agriculture and Turf segment provides agriculture and turf equipment, and related service parts, including large, medium and utility tractors; loaders; combines, corn pickers, cotton and sugarcane harvesters, and related front-end equipment and sugarcane loaders; and tillage, seeding and application equipment, including sprayers, nutrient management and soil preparation machinery.
Shares closed at $94.34 on Friday, in a 52-week trading range of $78.88 to $98.23. The consensus price target is $89.06.
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