Sears Holdings Third Quarter Earnings Sneak Peek

Sears Holdings (NASDAQ:SHLD) will unveil its latest earnings on Thursday, November 15, 2012. Sears Holdings is a retail conglomerate with full-line and specialty retail stores in the United States and Canada. It is the holding company of Kmart Holding Corporation and Sears, Roebuck and Co. Its three reportable segments are Kmart, Sears Domestic and Sears Canada.

Sears Holdings Earnings Preview Cheat Sheet

Past Earnings Performance: Last quarter, the company fell short of estimates by 28 cents, coming in at a loss of 86 cents per share against a mean estimate of net loss of 84 cents. The company topped expectations in the first quarter.

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Wall St. Revenue Expectations: Analysts predict a decline of 10.1% in revenue from the year-earlier quarter to $8.59 billion.

A Look Back: In the second quarter, the company’s loss narrowed to a loss of $132 million ($1.25 a share) from a loss of $146 million ($1.37) a year earlier, but missed analyst expectations. Revenue fell 8.4% to $9.47 billion from $10.33 billion.

Stock Price Performance: From October 12, 2012 to November 9, 2012, the stock price rose $2.59 (4.3%), from $59.92 to $62.51. The stock price saw one of its best stretches over the last year between June 25, 2012 and July 5, 2012, when shares rose for eight straight days, increasing 18.1% (+$9.47) over that span. It saw one of its worst periods between November 11, 2011 and November 29, 2011 when shares fell for 12 straight days, dropping 22.7% (-$16.86) over that span.

Key Stats:

On the top line, the company is hoping to use this earnings announcement to snap a string of four-straight quarters of revenue decreases. Revenue fell 1.2% in the third quarter of the last fiscal year, 9% in fourth quarter of the last fiscal year and 4.5% in the first quarter and then fell again in the second quarter.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.13 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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