Last week we got a good look at how the apparel retailers have been doing when JCPenney Inc. (NYSE: JCP), Kohl's Corp. (NYSE: KSS), Nordstrom Inc. (NYSE: JWN), and Urban Outfitters Inc. (NASDAQ: URBN) all reported better-than-expected earnings for the most recent quarter. On the other hand, Abercrombie & Fitch Co. (NYSE: ANF), Eddie Bauer Holdings Inc. (NASDAQ: EBHI), Liz Claiborne Inc. (NYSE: LIZ), and Macy's Inc. (NYSE: M) reported quarterly losses, reflecting the ongoing reluctance of consumers to spend.
This week, analysts polled by Thomson Reuters are looking for first-quarter earnings from Aeropostale Inc. (NYSE: ARO) that are 45.8% higher than a year ago, or $0.48 per share. Revenue for the quarter is expected to be 20.3% higher to $404.7 million. Earnings of the New York-based retailer have come within a penny or two of expectations in the past four quarters. The long-term EPS growth forecast is 14.5%, which is better than that of rivals American Eagle Outfitters Inc. (NYSE: AEO) and Gap Inc. (NYSE: GPS). The forward PE ratio estimate is 12.0, and as of its previous quarterly report, Aeropostale remained debt free. The consensus First Call recommendation is to buy ARO; an analyst recommended it recently on CNBC. Shares have surged 39.1% in the past three months to $31.00, but they are still 10.3% lower than a year ago.
Nebraska-based Buckle Inc. (NYSE: BKE) is expected to report a profit of $0.50 per share for the first quarter, which is 18.0% higher than a year ago. Revenue is expected to be 21.9% higher to $195.4 million; Buckle already reported same-store sales growth in April. The teen apparel retailer has beaten earnings expectations in four of the past five quarters, by as much as 10.2%. The long-term EPS growth forecast is 11.0%, and the forward PE ratio estimate is 12.0. The company is debt free and has been paying a quarterly dividend of $0.20 so far this year. The sales growth attracted the attention of Zacks and the Motley Fool. While shares have surged 32.3% in the past three months to $31.66, they recently fell below the 50-day moving average are still lower than the 52-week high of $44.57.
Others expected to report higher profits this week include Citi Trends Inc. (NASDAQ: CTRN), Ross Stores Inc. (NASDAQ: ROST), and TJX Companies Inc. (NYSE: TJX). Analysts expect Children's Place Retail Stores Inc. (NASDAQ: PLCE), Dress Barn Inc. (NYSE: DBRN), Foot Locker Inc. (NYSE: FL), Gap Inc. (NYSE: GPS), Gymboree Corp. (NASDAQ: GYMB), Phillips-Van Heusen Corp. (NYSE: PVH), and Target Corp. (NYSE: TGT) to post smaller earnings. While AnnTaylor Stores Corp. (NYSE: ANN), Casual Male Retail Group Inc. (NASDAQ: CMRG), Limited Brands Inc. (NYSE: LTD), Saks Inc. (NYSE: SKS), and Zumiez Inc. (NASDAQ: ZUMZ) are expected to have swung to losses year over year, Bon-Ton Stores Inc. (NASDAQ: BONT) and Pacific Sunwear of California Inc. (NASDAQ: PSUN) are projected to have deepened their losses.
It was a mixed bag for those tech companies reporting quarterly results last week as well. While BMC Software Inc. (NYSE: BMC), CA Inc. (NASDAQ: CA), and Compuware Corp. (NASDAQ: CPWR) topped Wall Street earnings expectations, Agilent Technologies Inc. (NYSE: A) and Applied Materials Inc. (NASDAQ: AMAT) reported losses for the quarter.
Analysts expect NetEase.com Inc. (NASDAQ: NTES), the Chinese web portal and online game developer, to report a first-quarter profit of $0.46 per share, which is 34.8% higher than a year ago. Revenue is expected to come to $116.3 million (+26.5%). The company's earnings topped estimates in the three of the past five quarters, by 47.7% in the fourth quarter. The long-term EPS growth forecast is 16.4%, which is better than that of rival Shanda Interactive Entertainment Ltd. (NASDAQ: SNDA), and the forward PE ratio estimate is 12.0. NetEase reported no debt in the previous quarter. The consensus recommendation is to buy NTES, and it was recently featured on BloggingStocks as one best bet for investing in China. Shares reached a 52-week high of $32.65 recently, but closed Friday at $30.45.
Perfect World Co. Ltd. (NASDAQ: PWRD) is also a Chinese online game developer and operator. For its first quarter, the company's earnings are expected to have risen 17.4% to $0.46 per share, while the forecast revenue of $56.9 million is 31.8% higher than a year ago. Perfect World's earnings have topped expectations in most recent quarters, but they missed by a penny in the fourth quarter. The long-term EPS growth forecast of this cash-rich company is 28.0%, which is higher than the industry average. Analysts on average recommend buying PWRD; the company's sales growth attracted the attention of a Zacks analyst. At $18.02, the share price is up 4.5% year to date, but 42.4% lower than a year ago.
Other expected earnings gainers reporting this week include Computer Sciences Corp. (NYSE: CSC), Intuit Inc. (NASDAQ: INTU), and Salesforce.com Inc. (NYSE: CRM). Expected earnings decliners include Analog Devices Inc. (NYSE: ADI), Black Box Corp. (NASDAQ: BBOX), Hewlett-Packard Co. (NYSE: HPQ), and NetApp Inc. (NYSE: NTAP).
Elsewhere on this week's economic calendar, housing data due include the National Association of Home Builders Housing Market Index for May on Monday afternoon, housing starts for April on Tuesday morning, and the MBA Mortgage Applications Survey for the week of May 15 on Wednesday morning.
Also look for the Federal Reserve to issue minutes from its April 28-29 meeting on Wednesday afternoon, as well as The Conference Board Leading Economic Indicators Index for April and Philadelphia Fed Outlook Survey on Thursday morning.










