Fossil - Tuesday
Luxury brand and watchmaker Fossil (NASDAQ:FOSL) is set to report its holiday quarter earnings on Tuesday after the close. Shares of Fossil got a boost in November when the company blew fall expectations out of the water. In the third period of 2014 Fossil reported earnings of $1.96 per share and revenue of $894.5 million. Contributing analysts on Estimize had only predicted EPS of $1.84 and sales of $882.9 million.
On Tuesday Fossil is expected to report hearty growth and reveal a 16% increase to year over year earnings. Revenue is expected to rise by 7% to $1.132 billion.
Fossil’s growth has largely been propelled by double digit gains in watches, its largest segment by far. Last quarter Fossil’s net sales of watches increased 12%.
Like many other multinational companies, currency headwinds are the risk factor to keep an eye on. In the third quarter total net comparable sales dropped slightly. They were dragged down by a decline in North America, but partially offset by gains in Europe and Asia Pacific. Relative strength in international sales compared to domestic could cause profit trimming due to the high value of the US dollar.
Angie’s List - Wednesday
Angie’s List (NASDAQ:ANGI) stock has been trending lower since the mid part of 2013. Shares are now valued around $5.00, just 20% of what they were worth 18 months ago. Over the past 2 years the subscription based business reviews site has posted great but rapidly declining rates of revenue growth. Meanwhile the company has struggled to turn an annual profit. Contributors on Estimize expect Angie’s List to miss the Wall Street consensus by 1 cent per share on Wednesday bringing 2014 to a yearly loss of 23 cents per share.
Angie’s List is being unbundled by smaller more focused reviews sites and assaulted by free online directory competitors, most notably Yelp. Pressure from competitors with alternative business models has challenged Angie’s List’s opportunity to turn profits. This quarter contributing analysts on Estimize are setting the bar low, expecting Angie’s list to miss the Street’s consensus by 1 cent per share on the bottom line and come in slightly below on revenue.
Priceline.com - Thursday
Online bookings platform Priceline.com (NASDAQ:PCLN) reports Thursday morning. Priceline’s arch-rival Expedia (EXPE) announced its acquisition of Orbitz for $1.3 billion last week. The news hasn’t phased Priceline investors. In the two immediate days after the announcement shares of Priceline climbed 4%.
In the second and third quarters of 2014 Priceline saw its EPS increase by 29% and 28% respectively. Over that same period revenue climbed 26% and 25%. Thursday Estimize contributors predict that Priceline will outperform the Wall Street consensus but top and bottom line growth rates will drop to 2 year lows. Year over year revenue gains are expected to drop to 16% and sales are projected to increase 19%.
Walmart - Thursday
Giant discount retailer Walmart (NYSE:WMT)) will also release earnings on Thursday. Walmart’s earnings are expected to take a hit because of international currency headwinds. Revenues are projected to continue growing.
The Estimize community is forecasting a 2% drop in EPS and a 2% boost in revenues this quarter. Critics have pointed to consistently declining foot-traffic as a sign of weakness. It’s true that fewer customers have been entering Walmart stores, but the company’s e-commerce sales are booming. Last quarter Walmart reported a 21% increase in online sales on a constant currency basis. Currency headwinds and the thinner margins associated with e-commerce could limit earnings growth while revenue climbs this period.
Deere - Friday
Industrial giant and tractor maker Deere (NYSE:DE) will wrap up the week’s big earnings reports on Friday. Deere’s earnings are expected to take a big hit compared to last year’s results.
Deere’s first fiscal quarter EPS are expected to drop from $1.81 last year to $0.95 this quarter. Despite the huge drop off in profits the company’s stock has held up. The same can’t be said for fellow industrial Caterpillar (CAT) which has seen its shares plummet 21% over the past 6 months.
Even though expectations are markedly lower, the Estimize community is looking for a large beat from Deere on Friday. Estimize contributors are expecting Deere to beat the Street’s consensus by 13 cents per share and top revenue estimates by 3%.