What to Expect When Kohl’s (KSS) Reports Earnings Results

NEW YORK (TheStreet) -- Shares of Kohl's Corp. (KSS) are up by 1.48% to $57.06 in mid-morning trading on Wednesday, as the company prepares to report its 2014 third quarter earnings results, which are scheduled to be released on Thursday morning, before the market open.

The average estimate from analysts show they are expecting Kohl's to report earnings per share of 74 cents, on revenue of $4.41 billion for the most recent quarter.

For the 2013 third quarter the department store retailer posted diluted earnings per share of 81 cents, on revenue of $4.4 billion. These results had declined year-over-year from the 2012 third quarter.

Separately, TheStreet Ratings team rates KOHL'S CORP as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:

"We rate KOHL'S CORP (KSS) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its increase in net income, attractive valuation levels, good cash flow from operations, growth in earnings per share and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The net income growth from the same quarter one year ago has significantly exceeded that of the Multiline Retail industry average, but is less than that of the S&P 500. The net income increased by 0.4% when compared to the same quarter one year prior, going from $231.00 million to $232.00 million.
  • Net operating cash flow has increased to $551.00 million or 20.56% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -2.66%.
  • The debt-to-equity ratio is somewhat low, currently at 0.83, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.28 is very weak and demonstrates a lack of ability to pay short-term obligations.
  • KOHL'S CORP has improved earnings per share by 8.7% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, KOHL'S CORP reported lower earnings of $4.07 versus $4.20 in the prior year. This year, the market expects an improvement in earnings ($4.08 versus $4.07).
  • You can view the full analysis from the report here: KSS Ratings Report

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

More from Markets

Asia Markets Fall on Latest Tariff Threats From Trump

Asia Markets Fall on Latest Tariff Threats From Trump

Google Invests in JD.com; Comcast-Disney Battle Nears Head -- ICYMI

Google Invests in JD.com; Comcast-Disney Battle Nears Head -- ICYMI

REPLAY: Jim Cramer on Tariff Worries, Oil, Alphabet and Centene

REPLAY: Jim Cramer on Tariff Worries, Oil, Alphabet and Centene

Video: Athens Stock Exchange CEO on What's Next for Greece's Debt Woes

Video: Athens Stock Exchange CEO on What's Next for Greece's Debt Woes

Dow Drops Over 100 Points on Trade War Worries

Dow Drops Over 100 Points on Trade War Worries