4/7/14 Estimize Weekly Earnings Preview

Includes: AA, BBBY, FDO, JPM, WFC
by: Leigh Drogen

Featured Earnings Reports This Week

Tuesday Alcoa (NYSE:AA)

The first major earnings release of the week comes from Alcoa, the world's 3rd largest producer of aluminium. Last quarter Alcoa beat revenue expectations by a considerable margin but failed to meet projections on EPS. Over the past 2 years Alcoa's sales have been falling steadily. Despite beating expectations from both the Estimize community and Wall Street, last quarter's revenue came in at a drop of 6.7% compared to FQ4 of the previous year. On Tuesday, contributing analysts expect year over year revenue decline to be halved to 3.1%.

Wednesday Bed Bath and Beyond (NASDAQ:BBBY)

A challenging retail environment due to harsh weather continues to hinder retailers. Wall Street and the Estimize community have both lowered EPS and revenue forecasts throughout the quarter for Bed Bath and Beyond. Heavy snow and extreme cold have pushed retail stores to offer heavy discounting to drive customer traffic. Fewer shoppers and lower margins are expected to cause EPS and revenue to fall compared to FQ4 of last year. This quarter the Estimize.com community has significantly higher expectations for BBBY than the Street.

Wednesday Family Dollar Stores (NYSE:FDO)

Family Dollar Stores is a discount retailer which now operates over 8,000 stores. Recently Family Dollar announced that they will be adding 400 new food items and slashing prices on nearly 1,000 products. Over the past two years Family Dollar has reported year over year growth in EPS and revenue 6 and 8 times respectively. This quarter both profit and revenue are expected to fall below last year's numbers as retailers continue to face a challenging period. For FDO's FQ2 2014 the Estimize community has much higher EPS expectations than the Street.

Friday JPMorgan Chase (NYSE:JPM)

The banks' earnings season gets underway Friday with both JPMorgan Chase and Wells Fargo (NYSE:WFC) reporting before the open. The Estimize community is forecasting $1.44 EPS and $24.701B this quarter which would represent year over declines of 9.4% and 1.7% respectively. Throughout the quarter we have seen downward analyst revisions from both Wall Street and Estimize which can be a bearish indicator. Estimize and Wall Street have similar consensus numbers for JPM this quarter with the forecast from Estimize being slightly higher.

Friday Wells Fargo

We close out our weekly earnings preview with Wells Fargo, who reports alongside JPM Friday morning. Over the past 2 years, Wells Fargo has been increasing its profit while total revenue has simultaneously declined. Contributing analysts on the platform are predicting that Wells Fargo will report year over year EPS growth of 5.4% while sales are expected to drop 1.8% compared to last year. We are seeing no difference in EPS expectations between Estimize and the Street but there is a significant delta in revenue forecasts. The Estimize community is projecting WFC's revenue to be $347M higher than the Street's consensus, a 1.7% difference.

Disclosure: No positions