TheStreet's Jim Cramer talks about Kohl's and Best Buy's (BBY) latest earnings.
Earnings for the latest quarter came in at $1.58 a share, topping Wall Street's expectations of $1.56 a share. Revenue of $6.39 billion was in line with estimates.
TheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio said, "They [Best Buy and Kohl's] were down initially but then Kohl's raised the dividend and talked about smaller stores..that's very very important." He added, "Both Kohl's and Best Buy got too cheap, just like Macy's (M), just like Wal-mart Stores (WMT)-kind of interesting stories."
Additionally, the department store operator earlier today issued its fiscal 2016 earnings guidance.
The company now expects earnings to be between the range of $4.05 a share to $4.25 a share, as the lower end was below analysts' projections of $4.24 a share. Sales could either grow or decline by 0.5%, the company noted.
Even though the company has been battling ongoing challenges in the retail environment, Kohl's continues to try and improve its business.
In the latest quarter, sales at stores open for at least a year increased 0.4% year-over-year.
"This strength, however, was substantially offset by softness in early November and in January when demand for cold-weather goods was especially low," CEO Kevin Mansell said.
Separately, TheStreet Ratings currently has a "Hold" rating on the stock with a letter grade of C.
The company's strengths can be seen in multiple areas, such as its revenue growth, attractive valuation levels and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, weak operating cash flow and disappointing return on equity.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: KSS