Investing

5 Key Earnings Previews for the Week Ahead

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24/7 Wall St. has put together a preview of some of the larger companies reporting their quarterly results in the last week of May. 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.

Be advised that the earnings and revenue estimates may change ahead of the formal reports, and some companies change earnings dates as well.

Michael Kors

Michael Kors Holdings Ltd. (NYSE: KORS) is scheduled to release its most recent quarterly results on Wednesday. The consensus estimates are $0.91 in earnings per share (EPS) on $1.09 billion in revenue. This company has been a hot retail name in clothing and clothing accessories, and it could be the epitome of the social media advertiser. The company has the cushion of the high-dollar consumer, but that hasn’t stopped it from pursuing an aggressive social media branding and sales agenda. The stock is off huge from its highs of a year ago and may be offering investors the perfect entry point. But the question remains, how much lower is Kors going before it finds its bottom?

Kors shares were trading at $61.62 near Friday’s close. The consensus analyst price target is $82.46, and the stock has a 52-week trading range of $59.88 to $98.96.

Palo Alto Networks

Palo Alto Networks Inc. (NYSE: PANW) is set to report its fiscal third-quarter results on Wednesday. The analysts’ consensus estimates call for an EPS of $0.20 per share and $223.23 million in revenue. According to a recent report from Oppenheimer, Palo Alto is benefiting from strong customer growth and adoption. The Oppenheimer analyst also called the company a disruptor within the network security space, and expects that it will continue to gain market share. The report said:

Given its platform approach, Palo Alto can also combine multiple security functions (firewall, IPS, web filtering, etc.) into a unified solution that improves efficiency and total cost of ownership for customers. With cost pressures fueling demand for more integrated security platform, we continue to view Palo Alto as a key beneficiary of a broad shift toward more platform-based security operations.

Palo Alto shares were trading at $161.91 on Friday. The consensus price target is $166.83, and the stock has a 52-week trading range of $64.00 to $162.59.

ALSO READ: 10 Companies to Own for the Next Decade

Costco

Costco Wholesale Corp. (NASDAQ: COST) is scheduled to report its fiscal third-quarter results on Wednesday. The consensus estimates call for EPS of $1.16 and $26.67 billion in revenue. The discount giant reported that April same-store sales, including gasoline sales and foreign exchange effects, rose 2% in the United States and fell 4% internationally. Overall, same-store sales were flat in the month. Excluding gasoline and currency exchanges U.S. sales rose 7% and international sales rose 9%. On the same basis worldwide, sales in the quarter rose 7%. Net sales for the month totaled $8.75 billion, up 2% year-over-year. Retail Metrics had projected a same-store sales increase of 0.4% (5.1% excluding gasoline sales and foreign exchange effects).

Costco shares were at $144.35 as the week was coming to a close. The consensus price target is $1555.09. The 52-week trading range is $113.51 to $156.85.

Abercrombie & Fitch

Abercrombie & Fitch Co. (NYSE: ANF) is set to report earnings Thursday. The consensus estimates call for a per-share net loss of $0.34 and $730.08 million in revenue. Prior to earnings being released the company announced a quarterly $0.20 dividend to be paid out on June 10, 2015, which is in line with its previous dividends. Abercrombie & Fitch operates nearly 800 stores across the U.S. and over 150 stores internationally. Currently the company is in search of a new CEO.

Shares were trading at $20.74 as the week came to a close, in a 52-week trading range of $19.34 to $45.50. The stock has a consensus analyst price target of $22.19.

GameStop

GameStop Corp. (NYSE: GME) is scheduled to report its fiscal first-quarter results on Thursday. The consensus estimates call for just $0.58 in EPS, as well as $2.01 billion in revenue. In a world in which mobile sales of games have become critical, GameStop has not kept pace. Its forecast for the current year is that revenue could drop 1% and comparable store sales may only move up 1%. And the trend of game sales continues to run against it. The company is still looking for a way out of the woods, and it hopes that this earnings report will help.

Shares of GameStop were at $40.89 near Friday’s close. The consensus price target is $45.56. The stock has a 52-week trading range of $31.69 to $46.59.

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