4Q 2017 Thomson Reuters Retail and Restaurant Aggregate Estimates and Revisions
Retailers this week: Feb. 20-23
Home Depot continues to smash expectations, posting a robust 7.5% Same Store Sales increase, above its 6.5% SSS estimate. HD also gave an upbeat financial forecast. Looking forward, Home Depot’s earnings are expected to continue to grow in the double digits over the next quarters. Meanwhile, Walmart beat same store sales, and revenue estimates, but missed on EPS. Also, online sales decelerated, and as a result, the stock plummeted after it reported.
Exhibit 1: Q4 2017 Estimates vs. Results
Negative guidance – next quarter
For Q1 2018, there have been 15 negative EPS preannouncements issued compared to 8 positive EPS pre-announcements. So far, the amount of negative guidance is less vs. last year (Exhibit 2). Still, the bulk of the negative guidance (33%) comes from the apparel sector.
Exhibit 2: Q1 2018 Earnings and Revenue Guidance
Source: Thomson Reuters I/B/E/S estimates
SAME STORE SALES:
Of the 20 retailers that have reported Q4 Same Store Sales, 55% exceeded estimates, 5% matched while 40% missed.
Exhibit 3: Retail Same Store Sales Scorecard
RESTAURANT SAME STORE SALES:
Of the 15 restaurants that have reported Q4 Same Store Sales, 53% exceeded estimates, while 47% missed.
Exhibit 4: Restaurant Same Store Sales Scorecard
Please note: if you use our earnings data, please source Thomson Reuters I/B/E/S.
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