earnings preview

Today is earnings day for several firms. Here are our top picks:

 

The Home Depot Inc. (NYSE:HD) reported a profit of $1.04 billion for the first quarter of 2012 as it saw sales in its stores increase and costs fall. That figure is a full 27% higher than the company’s earnings in the same quarter of 2011 when the company earned $812 million. The firm took in revenue of $17.8 billion in the term, an 18% increase over last year’s sales. Analysts had expected higher revenue but lower earnings from the company. The firm’s shares are trading down in pre market trending by around 3%. On of their main competitors, Lowes Companies Inc. (NYSE:LOW) is trading down a similar amount this morning as investors see Home Depot’s less than expected revenues.

Saks Inc. (NYSE:SKS), the department store operator, posted earnings of $32.1 million for the period as consumer confidence and spending in the United States rebound. The firm’s revenue was up to $756.6 million. In the same period last year the company earned just $28.4 million on revenue of $726 million. Earnings per share at the company excluding some items was 19 cents. Analysts had expected earnings around that mark but predictions put the sales figures higher at close to $765 million. The firm’s shares have fallen in pre market trading by more than 3%.

Dicks Sporting Goods Inc. (NYSE:DKS) had a great quarter according to its earnings report. The company showed earnings in the three months of $57.2 million up from just $37.5 million last year. Sales at the company’s stores were up to $1.3 billion for the year overshooting analyst’s estimates of $1.1 billion. The firm is taking real advantage of the better consumer economy and has obviously impressed investors. The firm’s stock is up to 50.65 as of writing this morning. That’s more than 7% of an increase since yesterday’s close. The company also raised its outlook for the remainder of 2012 and remained confident about the future.

J.C. Penney Company (NYSE:JCP) is expected to report earnings later today though the market doesn’t seem to confident in the firm’s coming numbers. Shares were down on early morning trading to 33.02 a drop of more than 1.5%. The company is expected to post a loss of 10 cents a share on revenue of around $3.5 billion. The numbers don’t compare well to last years 30 cents a share profit. The company is trying to transform itself at the moment and it is clear that transformation will take time before success is ensured.