estimates - What We're Reading - StockBuz2024-03-28T11:18:25Zhttp://stockbuz.ning.com/articles/feed/tag/estimatesRetail Earnings Estimates Now That Black Friday Is Herehttp://stockbuz.ning.com/articles/retail-earnings-estimates-now-that-black-friday-is-here2016-11-27T00:45:17.000Z2016-11-27T00:45:17.000ZStockBuzhttp://stockbuz.ning.com/members/1t2xbcvddkrir<div><p>With “Black Friday” here, the performance of retailers will be a focus for the markets. As of today, which retailers in the S&P 500 are projected to see the highest and lowest year-over-year earnings growth for the fourth quarter? Which retailers in the index have seen the largest upward and downward revisions to earnings estimates for Q4 over the past two months?</p>
<p>In terms of year-over-year earnings growth, seven of the 13 retail sub-industries in the S&P 500 are predicted to report growth in earnings for the fourth quarter, led by the Internet & Direct Marketing Retail (23.6%), Food Distributors (14.3%), and Home Improvement Retail (13.8%) sub-industries. On the other hand, six of the 13 retail sub-industries in the S&P 500 are predicted to report declines in earnings, led by the Home Furnishing Retail (-16.0%), Hypermarkets & Super Centers (-13.5%), and Food Retail (-9.8%) sub-industries.</p>
<p><img src="http://insight.factset.com/hs-fs/hubfs/November_2016/11.25.16_EarningsInsight/SP500%20Retail%20SubIndustries%20Estimated%20Earnings%20Growth.jpg?t=1480095639762&width=1024&name=SP500%20Retail%20SubIndustries%20Estimated%20Earnings%20Growth.jpg" title="SP500 Retail SubIndustries Estimated Earnings Growth.jpg" style="width: 1024px;" width="1024" /></p>
<h2>Revisions to Estimates</h2>
<p>In terms of upward revisions to earnings estimates, four sub-industries have recorded an increase in expected earnings growth since the start of the quarter, led by the Food Distributors (to 14.3% from 8.8%) and Computers & Electronics Retail (to 0.4% from -4.3%) sub-industries. In the Food Distributors sub-industry, Sysco (to $0.53 from $0.51) has recorded upward revisions to EPS estimates during this period. In the Computers & Electronics Retail sub-industry, Best Buy (to $1.66 from $1.58) has witnessed upward revisions to EPS estimates over this time frame.</p>
<p>In terms of downward revisions to earnings estimates, eight sub-industries have recorded a decrease in expected earnings growth since September 30, led by the Internet & Direct Marketing Retail (to 23.6% from 53.9%) and Drug Retail (to 6.1% from 12.9%) sub-industries. In the Internet & Direct Marketing Retail sub-industry, Amazon.com (to $1.45 from $2.13) has recorded the largest downward revisions to EPS estimates during this period. In the Drug Retail sub-industry, both CVS (to $1.67 from $1.79) and Walgreens Boots Alliance (to $1.11 from $1.17) have recorded downward revisions to EPS estimates over the past two months.</p>
<p class="BodyCopy" style="text-align: justify;">It is interesting to note that despite recording the largest decline in expected earnings growth over the past two months for all S&P 500 retail sub-industries, the Internet & Direct Marketing Retail sub-industry is still expected to report the highest earnings growth of all S&P 500 retail sub-industries at 23.6%.</p>
<p class="BodyCopy" style="text-align: justify;">Courtesy of <a href="http://insight.factset.com/earningsinsight_11.25.16" target="_blank">FactSet</a></p>
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