Once again, we quickly review a few of the most noteworthy companies to have recently reported earnings. Thus far today, we're seeing a mixed bag:
HRB Still Not Peachy
Though H&R Block (HRB) has certainly seen its share of impact from its exposure to the credit crunch, meeting or beating EPS estimates would have likely come as good news to its stock today. Such is not the case. Reported earnings of -$0.42 represents a -20% surprise.
Though this is a marked improvement over the -$0.49 reported in H&R Block's year-ago quarter, shares have dipped about a quarter in this morning's trading. According to the Zacks price Response Indicator (PRI), we expect a -2.64% price decrease in the 10 days following the EPS earnings report.
H&R Block is the largest provider of tax preparation services in the world, serving taxpayers primarily in the U.S., Canada, and Australia through more than 12,000 retail outlets and via its digital tax solutions. Under coverage at Zacks Equity Research, Zacks senior equities analyst Sean P. Smith has recently reiterated his Sell recommendation on shares of HRB.
Kroger Produces Modest Upside
With sales growth of nearly 10% and income growth over 18%, The Kroger Company (KR), one of the largest grocery retailers in the U.S., was able to post a modest 5.7% positive EPS surprise for the quarter. Its 37 cents per share reported bested last year's quarter of 30 cents.
Unfortunately, plenty of good news -- perhaps too much -- had already been priced into KR shares, which had run up 23% ahead of the company report. Kroger is down so far today about $1.50, or just over 5%. Kroger operates 2,491 supermarkets and multi-department stores in 31 states under approximately 24 brands, including Kroger, Ralphs, Fred Meyer, Food 4 Less, King Soopers, Smith s, Fry s and Fry s Marketplace, Dillons, Quality Food Centers (QFC), and City Market. In addition, Kroger directly, or through subsidiaries or franchisee and operating agreements, runs 780 convenience stores, 406 fine jewelry stores, 664 supermarket fuel centers, and 42 food processing plants.
Boost for Diamond Foods
Stockton, California-based Diamond Foods (DMND) reported earnings of 52 cents per share, which amounted to a 15.56% positive surprise. Sales growth was up slightly, but income growth was down. DMND shares are trading up a dime or so, with an eye on hitting $22.00 per share. Zacks senior food industry analyst had downgraded Diamond Foods to Hold from Buy one month ago.
Diamond is a specialty food company focused on processing, marketing and distribution of culinary, ingredient, in-shell, and snack nuts under the Diamond of California and Emerald of California brand names. Founded in 1912, Diamond Foods is the U.S. leader in the culinary and in-shell nut category with a 37.4% market share.
Restoration Feels Impact
Home furnishing and similar types of specialty retail have fallen on hard times, as witnessed by Restoration Hardware's (RSTO) EPS miss of over 47%. Its -$0.34 per share does not compare favorably at all with last year's same-quarter +$0.15. This represents a 126.67% drop, year over year.
This negativity looks to have been already baked-in: shares of RSTO are up 7 cents in morning trading. The Zacks PRI expects a -2.31% price decrease in the 10 days following the EPS earnings report.
Restoration Hardware is a specialty retailer of home furnishings, functional and decorative hardware and related merchandise. They offer a broad but carefully edited selection of merchandise that provides a consistent point of view throughout the stores. The collection of merchandise include classic American styled furniture, home furnishings, lighting, functional and decorative hardware and discovery items. The company markets its merchandise through retail locations, mail order catalogues and on the world-wide web at www.restorationhardware.com.
Sharper Image Dulls
A slight miss is EPS this quarter, and two cents worse than the year-ago quarter greeted investors of Sharper Image (SHRP), the innovative product specialty retailer. Income was posted at -$22.24 million, with 15.15 million shares outstanding.
The company operates stores throughout the United States and mails millions of its award-winning catalogs each month. Products may also be purchased on Internet sites and directly via its online store. Further, the company also has an online auction site, where consumers can place bids to win Sharper Image products at lower prices.
Read the full analyst report on HRB
Read the full analyst report on KR
Read the full analyst report on DMND
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