Kohls Corp Earnings Cheat Sheet: Another Quarter of Rising Profit

S&P 500 (NYSE:SPY) component Kohls Corporation (NYSE:KSS) reported its results for the third quarter. Kohl’s operates department stores that offer apparel, footwear and accessories as well as home products and housewares.

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Kohls Earnings Cheat Sheet for the Third Quarter

Results: Net income for Kohls Corporation rose to $211 million (80 cents per share) vs. $176 million (57 cents per share) in the same quarter a year earlier. This marks a rise of 20% from the year earlier quarter.

Revenue: Rose 3.8% to $4.4 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: KSS beat the mean analyst estimate of 79 cents per share. It fell exactly in line with the average revenue estimate of $4.4 billion.

Quoting Management: Kevin Mansell, Kohl’s chairman, president and chief executive officer, said, “I am extremely pleased with our ability to deliver strong net income and earnings per share growth in a challenging sales environment. Our gross margin rate increased over last year as a result of our increased penetration of private and exclusive brands and disciplined inventory management. We are pleased with the expense management discipline across the company that allowed us to grow our expenses less than we originally planned.”

Key Stats:

The company has now seen net income rise in four straight quarters. In the second quarter, net income rose 15% while the figure climbed 6% in the first quarter and 14.2% in the fourth quarter of the last fiscal year from the year earlier.

Revenue has risen the past four quarters. Revenue increased 3.6% to $4.25 billion in the second quarter. The figure rose 3.1% in the first quarter from the year earlier and climbed 6.3% in the fourth quarter of the last fiscal year from the year-ago quarter.

The company has now topped analyst estimates for the last three quarters. It beat the mark by one cent in the second quarter and by one cent in the first quarter.

Looking Forward: Analysts appear increasingly optimistic about the company’s results for the next quarter. The average estimate for the fourth quarter has moved up from $1.90 a share to $1.95 over the last ninety days. For the fiscal year, the average estimate has moved down from $4.51 a share to $4.44 over the last sixty days.

Competitors to Watch: J.C. Penney Company, Inc. (NYSE:JCP), Sears Holdings Corporation (NASDAQ:SHLD), Macy’s, Inc. (NYSE:M), The Bon-Ton Stores, Inc. (NASDAQ:BONT), Dillard’s, Inc. (NYSE:DDS), Saks Incorporated (NYSE:SKS), Nordstrom, Inc. (NYSE:JWN), Target Corporation (NYSE:TGT), Overstock.com, Inc. (NASDAQ:OSTK), and QKL Stores Inc (NASDAQ:QKLS).

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)