Kohl’s Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Kohl’s (NYSE:KSS) will unveil its latest earnings on Thursday, November 8, 2012. Kohl’s operates department stores that offer apparel, footwear and accessories as well as home products and housewares.

Kohl’s Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for net income of 87 cents per share, a rise of 8.7% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 89 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 87 cents during the last month. Analysts are projecting profit to rise by 7.4% compared to last year’s $4.62.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 4 cents, reporting profit of $1 per share against a mean estimate of net income of 96 cents per share.

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A Look Back: In the second quarter, profit fell 19.7% to $240 million ($1 a share) from $299 million ($1.08 a share) the year earlier, but exceeded analyst expectations. Revenue fell 1% to $4.21 billion from $4.25 billion.

Stock Price Performance: From October 5, 2012 to November 2, 2012, the stock price rose $3.55 (7%), from $51 to $54.55. The stock price saw one of its best stretches over the last year between May 17, 2012 and May 29, 2012, when shares rose for eight straight days, increasing 9.1% (+$4.22) over that span. It saw one of its worst periods between December 28, 2011 and January 9, 2012 when shares fell for eight straight days, dropping 8.1% (-$4.08) over that span.

Wall St. Revenue Expectations: On average, analysts predict $4.49 billion in revenue this quarter, a rise of 2.5% from the year-ago quarter. Analysts are forecasting total revenue of $19.34 billion for the year, a rise of 2.9% from last year’s revenue of $18.8 billion.

Key Stats:

After experiencing income drops the past three quarters, the company is hoping to use this earnings announcement to rebound. Net income fell 7.3% in the fourth quarter of the last fiscal year, by 27% in the first quarter and again in the second quarter.

On the top line, the company is looking to rebound after a revenue drop last quarter. Revenue rose 1.9% in the the first quarter after dropping in the second quarter.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.7 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term.

Analyst Ratings: With 10 analysts rating the stock a buy, none rating it a sell and seven rating the stock a hold, there are indications of a bullish stance by analysts.

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

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