Thursday, January 8, 2009 0 comments ++[ CLICK TO COMMENT ]++

Sears beats consensus earnings estimates

Sears finally managed to beat consensus estimates, after posting terrible numbers for what seems like 2 years.

Sears Holdings Corp (SHLD.O) forecast quarterly profit above Wall Street estimates on Thursday, sending its shares up nearly 18 percent.

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The company, controlled by hedge fund manager Edward Lampert, forecast earnings of $2.44 to $3.09 per share for the fourth quarter ending on Jan. 31, down from $3.17 a year earlier.

Analysts on average had expected profit of $1.90 a share for the quarter, according to Reuters Estimates.

For the full year, Sears expects to earn $1.27 to $1.90 per share, compared with analysts' estimates of 53 cents.

The company also said December sales at its stores open at least a year fell 7.3 percent, with Kmart down 1.1 percent and U.S. Sears stores dropping 12.8 percent.


K-mart, which had been a drag is outperforming now that consumers are switching to low cost retailes. Same-store sales fell less than many of its competitors. However, Sears posted terrible numbers of the last 2 years so the comparison is easy for Sears. Also, the company supposedly bought back more shares in the $40ish range.

I think 2009 will be challenging given the deteriorating economy.

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