This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Coming Week in Earnings: Let's Go Shopping

NEW YORK ( TheStreet) -- The next couple of weeks' earnings are expected to set the tone for the start of summer. Here, I review four of the biggest service sector companies reporting.

Remember that option premiums generally climb into earnings, so if you want to hedge as a buyer or seller act accordingly.

Before the Open

CarMax(KMX - Get Report)

Who They Are: CarMax is a subsidiary of Circuit City Stores. It trades an average of 2.1 million shares per day with a marketcap of $6.3 billion.

CarMax is anticipated to report weaker first-quarter earnings before the market opens on June 21. The consensus estimate is currently 53 cents a share, a decline of 2 cents, or 3.6%, from 55 cents during the same period last year.

The trailing 12-month price-to-earnings ratio is 15.2 and the mean fiscal year estimate price-to-earnings ratio is 14.26, based on earnings of $1.93 per share this year. More than half of the analysts currently hold CarMax as a strong buy.

Revenue year-over-year has increased to $8.98 billion last fiscal year compared to $7.47 billion in the previous year. The bottom line has rising earnings year-over-year of $377.49 million last fiscal year compared to $277.84 million in the previous year.

Shares have really sold off recently, but not at a pace to look for a dead cat bounce. Calm steady sell-offs often precede gap downs in price and KMX would have me concerned about capital losses. The time to exit was actually in early May when the price broke below the 200-day moving average. Current shareholders can write covered calls into earnings to gain expanded option premiums and a hedge in case shares do not reach a bottom soon. The downside, of course, is covered call writers lose out on potential earnings if the stock jumps higher.

Industry and Peers Comparison:

Barnes & Noble, Inc. (BKS - Get Report)

Who They Are: Barnes & Noble is engaged in the retail sale of books and trades an average of 1.4 million shares per day with a marketcap of $911 million.

Barnes & Noble is anticipated to report dismal, but advancing fourth-quarter earnings before the market opens June 19. The consensus estimate is currently a loss of 95 cents a share, an improvement of 9 cents (9.5%) from a loss of $1.04 during the same period last year. Analysts expect BKS to report a loss of 92 cents per share in the current fiscal year, ending April 2013.
1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
AMZN $512.89 -0.99%
BKS $15.61 -0.38%
BBBY $62.11 -0.34%
KMX $61.00 -0.03%
RAD $8.25 0.12%

Markets

Chart of I:DJI
DOW 16,528.03 -114.98 -0.69%
S&P 500 1,972.18 -16.69 -0.84%
NASDAQ 4,776.5080 -51.8170 -1.07%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs