Coming Week: Top 7 Earnings on Deck
The Pep Boys (PBY)
Who They Are: Pep Boys - Manny, Moe & Jack is a leading automotive retail and service chain. Pep Boys trades an average of 2 million shares per day with a marketcap of $469 million.
Pep Boys is anticipated to report dismal first-quarter earnings after the closing bell on June 7. The consensus estimate is currently 2 cents a share, a decline of 21 cents from 23 cents during the same period last year. Poor earnings expectations were cited as the motivation for private equity Gores Group to walk away from a $15 a share offer to takeover Pep Boys.
Pep Boys doesn't look very attractive to me either at $15 a share, but under $10 with a forward price-to-earnings multiple of 10, the worst may be over for investors. $50 million (96 cents per share) penalty from Gores Group for not completing the buyout will help ease the pain.
Francesca's Holdings (FRAN) Who They Are: Francesca is a specialty retailer of women's apparel products and trades an average of 1.3 million shares per day with a marketcap of $983 million. Francesca is anticipated to report profound first-quarter earnings growth after the closing bell on June 7. The consensus estimate is currently 18 cents a share, an improvement of 8 cents from 10 cents during the same period last year. Francesca's share price has rode a roller coaster as a result of previous good numbers combined with firing former CFO Gene Morphis. Francesca may appear bargain bin priced, however, the price-to-earnings multiple is still very high at 41. Ulta Salon, Cosmetics & Fragrance (ULTA) Who They Are: ULTA is the largest beauty retailer that provides one-stop shopping for prestige, mass and salon products and salon services trades an average of 1.2 million shares per day with a marketcap of $5.6 billion. ULTA is anticipated to report improving first-quarter earnings after the closing bell on June 5. The consensus estimate is currently 53 cents a share, an improvement of 16 cents from the same period last year. Author does not hold a position in any stock mentioned at the time of writing. Author may enter into a long FuelCell position before earnings release. This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.Select the service that is right for you!
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