Estimize Weekly Earnings Preview 3/10/14

by: Leigh Drogen

Monday Urban Outfitters (NASDAQ:URBN)

Fellow clothing retailers Abercrombie and Fitch (NYSE:ANF) and The TJX Companies (NYSE:TJX) both reported earnings on Wednesday, February 26th. Abercrombie beat the Estimize EPS consensus and TJX missed while both companies came up short on revenue. This quarter harsh weather conditions have contributed to a challenging retail environment which has seen less customer traffic and reduced sales.

Tuesday Dick's Sporting Goods (NYSE:DKS)

Dick's Sporting Goods is one of very few retail companies for which Wall Street raised both its EPS and revenue expectations throughout the quarter despite retail weakness across the board. The Street's increasingly bullish sentiment is matched by the Estimize community who expect Dick's to beat the Street on both EPS and revenue.

Wednesday The Men's Wearhouse (MW)

The financial media has been abuzz the past few months about a possible merger between The Men's Wearhouse and Joseph A. Bank (NASDAQ:JOSB) to create a superpower in the discount men's suits industry. In FQ4, which is always the worst quarter of the year for MW, Estimize is expecting the men's wear retailer to report in-line on EPS and come up slightly short on revenue.

Thursday Dollar General (NYSE:DG)

Dollar General's peer Dollar Tree (NASDAQ:DLTR) reported FQ4'14 on Wednesday February 26th, coming up short of the Estimize consensus on both EPS and revenue. The recurring theme of harsh weather and a challenging retail environment will also hinder Dollar General this quarter. Dollar General has reported double digit year over year revenue growth in the previous 2 quarters and despite the challenging sales environment the Estimize community is expecting DG to beat the Street's expectations by a considerable margin.

Friday Icahn Enterprises (NYSE:IEP)

Hedge fund manager Carl Icahn has been loud this quarter. The tweeting activist investor's latest targets include Apple (NASDAQ:AAPL) and Ebay (NASDAQ:EBAY). Mr. Icahn who owns stakes in both companies, has pressured Apple to spend more of its cash stockpile to buyback shares and he wants Ebay to spin off PayPal into a separate company. Recently he has dropped his petition for Apple to buyback $50Billion worth of shares but he continues to pressure the board at Ebay which defiantly insists that Ebay and PayPal have natural synergies and should not be broken up. There is a large differential between the expectations of Wall Street and the Estimize community on IEP this quarter.

Disclosure: No positions

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