Kohl’s (KSS) Earnings Preview: Q3 Report Expected Tuesday

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Kohl’s Corporation (NYSE:KSS) is scheduled to report Q3 earnings results on Tuesday, November 19, 2019, 9:00 AM EST.

KSS is a mid-cap stock with a market capitalization of $9.293 billion and a total enterprise value of $14.717 billion. The company operates in the Consumer Discretionary sector and the Multiline Retail industry.

Kohl’s is expected to report earnings of $0.86/share on revenue of $4.409 billion. The consensus earnings per share (EPS) of $0.86/share is based on a poll of 19 analysts and represents a decline of -12.2% over the same quarter last year when the company reported earnings of $0.98/share.

The revenue forecast of $4.409 billion based on a poll of 8 analysts implies a year-over-year (YoY) growth of 0.9%. Last year the company reported $4.369 billion in revenue for the quarter.

Expected to report EPS decline of -$0.12/share for Q3, 2019
Metric Expected Prior Year YoY Change
Revenue $4,409.00 $4,369.00 0.9%
EPS $0.86 $0.98 -12.2%

Kohl’s has struggled to grow revenue in recent quarters as it faces stiff competition from Amazon and other e-commerce platforms like it’s department store peers. Kohl’s reported same-store sales decline of 2.9% in the second quarter. Investors would be watching closely if the company managed to meet the same-store sales target of 0.6% during Q3.

Kohls Revenue Profit Margin

Earnings Call Trends

Historically, management has exceeded analyst expectations 6 out of the last 8 tracked quarters, and missed expectations 2 quarters. What are your expectations from Kohl’s for earnings this quarter? Let us know in the comments!

Analyst Expected vs. Reported EPS
Quarter Expected Reported Surprise Result
Q2, 2020 $1.52 $1.55 1.6% Beat
Q1, 2020 $0.69 $0.61 -11.6% Missed
Q4, 2019 $2.18 $2.24 2.8% Beat
Q3, 2019 $0.97 $0.98 1.0% Beat
Q2, 2019 $1.64 $1.76 7.3% Beat
Q1, 2019 $0.48 $0.64 32.0% Beat
Q4, 2018 $1.77 $1.87 5.6% Beat
Q3, 2018 $0.72 $0.70 -2.8% Missed

In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report. After the last earnings report for the period ending August 3, 2019, the stock price reacted by falling by -2.4%.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
2019-08-20 $48.20 $47.06 -2.4% Decline
2019-05-21 $62.91 $53.44 -15.1% Decline
2019-03-05 $66.47 $70.02 5.3% Increase
2018-11-20 $71 $66.30 -6.6% Decline

Fundamentals And Technical Analysis

Kohl’s is currently trading at $58.40/share, down -1.2% for the day. The company is trading at approximately 70.1% of its 52-week high of $83.28/share. The company’s stock price is up 21.2% since the last earnings report and up 0.9% over the previous week. The company’s 14 Day Relative Price Index (RSI) of 68.01 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.

The current share price implies a price-to-earnings (P/E) multiple of 12.4x and a forward P/E multiple of 11.1x. Kohl’s current share price also implies a price-to-book (P/B) multiple of 1.7x. The following table summarizes some other key fundamental ratios:

Data as of November 19, 2019
Metric Value
Last Fiscal Period FY2020.Q2
Period End Date August 3, 2019
Stock Price (Current) $58.40
P/E Ratio 12.4x
P/E Ratio (Fwd) 11.1x
PEG Ratio -49.2
Total Debt to Capital (%) 39.8%
Levered Free Cash Flow $1.031 billion
Enterprise Value / EBITDA 6.5x

Company Profile: Kohl’s Corporation

Kohl’s Corporation operates as an omnichannel retailer in the United States. Its stores and Website offer apparel, footwear, accessories, beauty, and home products. As of February 2, 2019, it operated 1,159 department stores, a Website Kohls.com, and 12 FILA outlets, and 4 Off-Aisle clearance centers.

Kohl’s Corporation was founded in 1962 and is headquartered in Menomonee Falls, Wisconsin.

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