Kohl’s Corporation (NYSE: KSS) has confirmed the release date for its Q4 2022 earnings report, which is on Tuesday, March 1, 2022, before the market opens.
What to look for: The company implemented strategic initiatives to transform it into a top destination for a casual and active lifestyle. Kohl had an impressive third quarter, with sales and margins topping expectations. When the company releases its Q4 2022 earnings, investors will be keen to see if the company maintains the momentum witnessed in the previous quarter.
Earnings: Stockearning’s Estimated EPS for fiscal Q4 2022 is expected to be around $2.31 per share, representing a YoY decline of 4.05%. The company had adjusted earnings of $1.65 per share up from earnings of a penny per share a year ago and more than doubles analysts' estimates of $0.64 per share. As a result, full-year adjusted earnings will range between $7.1 and $7.3 per share. Historical EPS Performance shows that the company has in the past 12 quarters topped estimates 27 times (75%) and missed nine times (25%).
Revenue: The company is expecting revenue of $6.86 billion in Q4 2022, representing YoY growth of 11.68%. In the third quarter, the company had net sales of $4.37 billion, a 15.5% growth, topping estimates of $4.27 billion. The company anticipates revenue to grow by a mid-twenties percentage rate for the whole year, an increase from the previous projection of low twenties.
Stock movement: KSS shares have gained 2.2%% since the company released its Q3 2022 earnings. Interestingly, the company’s shares have been DOWN 26 times out of the past 48 quarters. So, the historical price reaction suggests a 52% probability of the share price going DOWN following the fiscal Q1 2022 earnings release. According to the Stockearning algorithm, the predicted volatility on the first day is +/-6%, while the predicted volatility on the seventh day is +/-6%.
What analysts are saying: JPMorgan analyst Matthew Boss raised his price target on Kohl’s from $55 to $61 and maintained a Hold rating on the shares ahead of Q4 2022 earnings results.
Deutsche Bank analyst Gabriella Carbone slashed her price target on KSS from $86 to $75 and maintained a Buy rating on the stock. According to the analyst, the clothes retail sector will report in line results for Q4, with the omicron increase and higher-than-anticipated freight and supply chain expenses likely to "put a lid on any upside." She expects Q1 guidance to be lower than Wall Street expectations. Carbone slashed multiples across the board to reflect the uncertainty caused by supply chain issues, rising freight prices, increased input costs, and the possibility of higher promotional efforts as inventories grow.
BofA analyst Lorraine Hutchinson moved to No Rating in the stock following reports that the company had received letters expressing interest to acquire its. She cited her belief that the “stock is no longer trading on fundamentals.” Cowen analyst Oliver Chen increased his price target on the stock from $73 to $75 and maintained a Buy rating on the stock. According to his leveraged buyout returns analysis, the prospective bid assuming 3.7x TTM EV/EBITDA appears to be quite low. The analyst stated that a deal would almost certainly necessitate the monetization of $3 billion or more in real estate through a sell leaseback. Other financial/strategic suitors are possible, says the analyst.
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