6 Key Earnings Reports to Watch in the Week Ahead

April 4, 2015 by Chris Lange

24/7 Wall St. has put together a preview of some of the larger companies reporting their quarterly results at the beginning of April. We have reviewed the consensus earnings estimates from Thomson Reuters and the stock price and trading history, as well as added some additional color on each.

Alcoa

Alcoa Inc. (NYSE: AA) is scheduled to report its first-quarter earnings on Wednesday. The consensus estimates call for earnings per share (EPS) of $0.25 and $5.95 billion in revenue.

Investors should take a close look at Alcoa. The reason is that its chart has not caught up with the steel stocks — in the sense that it has not acted yet as though it is finding a bottom. That being said, this former Dow Jones Industrial Average component’s shares are now barely $1 above their 52-week low. That alone is not good by any means. Still, it is no secret that some investors consider stocks at or drifting toward 52-week lows as candidates for potential turnaround stocks. Again, “potential” turnarounds. At least Alcoa is making diversifying acquisitions to broaden its model.

Shares traded at $13.14 as the week’s trading came to a close. The consensus price target is $18.32, and the stock has a 52-week trading range of $12.34 to $17.75.

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Bed Bath & Beyond

Bed Bath & Beyond Inc. (NASDAQ: BBBY) is set to post its fiscal fourth-quarter results Wednesday. Consensus estimates call for EPS of $1.81 and $3.37 billion in revenue.

The company has been a massive growth story for years. It had faced some serious growing pressure in recent years, but management turned to stock buybacks to juice up the returns again. Now shares are back closer to all-time highs. What is amazing is that no dividend has been paid in its 20-year history. With only about 3% revenue growth being the norm, it is time to start rewarding investors here by paying them to own the stock.

At the end of Thursday’s trading session, shares were changing hands at $76.80. The consensus price target is $76.00. The 52-week trading range is $54.96 to $79.64.

Pier 1 Imports

Pier 1 Imports Inc. (NYSE: PIR) is scheduled to report its fourth-quarter and fiscal-year results on Wednesday. The consensus estimates call for $0.36 in EPS and $548.71 million in revenue for the quarter.

Recently Pier 1 revised its guidance on the 2016 fiscal year. The outlook reflects softer than expected sales in January and February, as well as higher than forecast expenses, primarily related to incremental supply chain costs. The company expects comparable store sales growth, including e-commerce, of 5%. Gross profit as a percentage of sales is expected to be 40.2%. Earnings per diluted share are expected to be in the range of $0.80 to $0.83.

Shares closed trading at $13.11 on Thursday, below the consensus analyst price target of $15.19. The 52-week trading range is $11.38 to $19.39.

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Rite Aid

Rite Aid Corp. (NYSE: RAD) will release its most recent quarterly results Wednesday. The consensus estimates are for $0.08 EPS on $6.79 billion in revenue.

The company is one of the nation’s leading drugstore chains, with nearly 4,600 stores in 31 states and the District of Columbia. Many on Wall Street see the company very favorably positioned in health care, given its geographic overlap with Medicaid expansion, as well as its push into clinics. Bullish Wall Street analysts think the fiscal year 2016 EBITDA numbers are conservative, which bodes well if Rite Aid surprises to the upside. The company is debt laden after a monster buyout of Envision Pharmaceutical Services from the private investment firm TPG, and it priced a huge bond deal this week to help pay for it.

Shares closed most recently at $8.79. The consensus price target is $9.66, and the 52-week trading range is $4.42 to $8.86.

Constellation Brands

Constellation Brands Inc. (NYSE: STZ) is set to report its earnings on Thursday. The consensus estimates are for EPS of $0.94 and revenue of $1.36 billion.

Since the most recent earnings report, shares have gained over 10%. Ahead of this earnings report, investment research firm Zacks is optimistic on where Constellation is going. The firm reiterated a Buy rating for Constellation Brands with a price target of $131. This call was issued on March 24.

Shares ended the week at $117.75. The stock has a consensus price target of $119.87. Shares have traded between $76.26 and $118.50 in the past year.

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Walgreens

Walgreens Boots Alliance Inc. (NASDAQ: WBA) is set to report its fiscal first-quarter earnings Thursday. Analysts are looking for EPS of $0.95 on $27.27 billion in revenue.

In the beginning of January, retailers and pharmacies announced same-store sales figures. Walgreens and Rite Aid previously reported same-store sales growth of 9.2% and 5.3%, respectively. Pharmacy sales gains at Walgreens rose above 14% year-over-year in December, compared with a 7.3% increase at Rite Aid. Front-end sales rose 0.8% at Rite Aid and 2.6% at Walgreens.

Shares were changing hands at $85.97 on Thursday’s close, in a 52-week trading range of $57.75 to $88.81.

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