Investing

Top 4 Earnings to Look for in the Week Ahead

As we have entered the summer months, we are hitting the doldrums for major companies reporting earnings. We only have a few major companies are expected to share their latest results this coming week. Coincidentally, these companies are reporting on Thursday. 24/7 Wall St. has 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.

Kroger

Kroger Co. (NYSE: KR) is expected to share its most recent quarterly results on Thursday before the open. The consensus estimates call for earnings per share (EPS) of $0.69 and $34.88 billion in revenue.

In the most recent earnings report, the company kept its streak alive and posted its 49th consecutive quarter of positive identical supermarket sales growth, excluding fuel. During the fourth quarter, total sales excluding fuel increased 6.5% year over year, and including fuel it increased 3.8%. With oil prices rising we might expect an even more positive quarter out of Kroger.

Shares traded at $36.81 at the close on Friday, in a 52-week trading range of $27.32 to $42.75. The stock has a consensus analyst price target of $41.91.

Rite Aid

Also look for Rite Aid Corp. (NYSE: RAD) to reveal its fiscal first-quarter results on Thursday before the open. The consensus estimates call for $0.05 in EPS, as well as $8.26 billion in revenue.

Management believes that Rite Aid’s positive fourth-quarter results helped it deliver a successful fiscal year that reflects the tremendous progress it is making to expand a retail health care offering. This was one of many key highlights from the previous fiscal year, which was a transformational year that saw the company acquire EnvisionRx, launch the ground-breaking wellness+ with Plenti program, complete its 2,000th Wellness store and exceed $30 billion in revenues for the first time.

Shares ended last week at $7.83. The consensus price target is $8.94. The stock has a 52-week trading range of $5.88 to $9.47.

Oracle

After the close on Thursday, Oracle Corp. (NYSE: ORCL) is set to report its fiscal fourth-quarter results. The analysts’ consensus estimates call for EPS of $0.81 and revenue of $10.46 billion.

With shares trading at 15 times estimated 2016 earnings, and with a solid free cash flow yield, many analysts also feel that Oracle’s 12C database cycle starts to contribute during calendar 2016, and the stock could very well be poised for what they term a breakout year. After recent investors meetings, some analysts raised fiscal year 2017 cloud margins to 66% from 63% and earnings per share to $2.81. Some also believe that the software giant may be on the verge of a multiyear database product cycle.

Shares were changing hands at $38.74 on Friday’s close. The consensus price target is $43.86, and the stock has a 52-week trading range of $33.13 to $45.24.

Smith & Wesson

Fiscal fourth-quarter results are expected from Smith & Wesson Holding Corp. (NASDAQ: SWHC) on Thursday after the close. On average, analyst estimates are looking for $0.54 in EPS and revenue of $214.55 million.

The company reported its most recent quarterly earnings in March, showing a sales increase of 61.5%, with handgun sales accounting for some 75% of sales in the quarter. The company’s CEO attributed the jump in sales to a “long-term trend toward personal protection.”

Shares of Smith & Wesson closed at $21.41 on Friday. The consensus price target is $29.22. The 52-week trading range is $14.71 to $30.44.

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