Thursday, March 7, 2013

US Big Retail Corps 2012 Annual Earnings Up 8.4% and EPS Up a Much Higher 12.6%

I found 14 US Retail Corps filing with the SEC, which have already released their January 2013 earnings, and which generated Non-GAAP Adjusted After-tax Net Income or Net Loss of over $1 bil each in either annual 2012 or annual 2011.

The January 2013 fiscal year end (FYE) companies are included with the annual 2012 companies' earnings below.

There are several large Retailers which haven't released their January 2013 earnings yet, including Krogers, and therefore they weren't included in these 14.

Non-GAAP Adjusted After-tax Net Income, which is generally used by the investment community to value common stocks, was used when this amount was disclosed in the company's earnings release, and it excludes Special, Unusual Items which are significant in amount relative to Reported GAAP Net Income. 

How did these 14 Big Retailers do?  Very well.

The Total Non-GAAP Adjusted After-tax Net Income of these 14 US Big Retailers was $45.3 bil in annual 2012, up a healthy 8.4% over 2011.

And on an Earnings Per Share basis, the total growth was a much more robust 12.6%, which was a company-earnings-weighted 4.2%, or 50%, higher than the 8.4% total earnings growth.

When you think about it, it is just amazing that these 14 Big US Retailers generated 12.6% EPS growth in 2012, a Presidential election year where the US Congress was doing everything possible to substantially slow down the US economy, hoping that it would result in President Obama being defeated in the election.

Just think what the US economy and these Big Corps' earnings will do if the US Congress would start working with, instead of against, the Obama Administration.

So, what's with this substantial add-on 4.2% earnings growth on an EPS basis, as compared with the 8.4% growth on just an earnings growth basis.  After all, EPS and EPS growth are what drive common stock prices.

It's the massive common stock buyback programs that nearly all of the Big Retailers have.  The US Fed has facilitated this with its extremely low interest rates, which makes these common stock buyback programs incredibly lucrative for all large US Corps, and the Big Retailers have taken this common stock buyback strategy to a completely different level.  The only Big Retailer electing not to get a benefit here is Starbucks. 

But the problem with these massive stock buyback programs is that they only benefit the very wealthy and they further expand the huge wealth gap between the very wealthy and everyone else, including small businesses, who are not able to take economic advantage of it.

And instead of legislating to more fairly deal with this, the US Congress just sits there and twittles its thumbs.  

Below here is the Non-GAAP Adjusted After-tax Net Income for both annual 2012 and 2011 for each of these 14 US Big Retailers:




Annual Annual Adjusted Adjusted

2012 2011 Net Net Adjusted Growth

Non-GAAP Non-GAAP Income Income EPS Positive

Adjusted Adjusted Increase Increase Increase %

Net Net (Decrease) (Decrease) (Decrease) Spread
Company FYE Income Income Amount % %

mils of $s mils of $s mils of $s


Walmart Jan 16,999 15,766 1,233 7.8% 11.1% 3.3%
McDonalds Dec 5,465 5,503 (38) -0.7% 1.7% 2.4%
Home Depot Jan 4,680 3,883 797 20.5% 25.5% 5.0%
Target Jan 3,160 3,018 142 4.7% 7.9% 3.2%
Lowes Jan 1,959 1,839 120 6.5% 18.2% 11.7%
TJX Jan 1,907 1,540 367 23.8% 28.1% 4.3%
Costco Aug 1,709 1,462 247 16.9% 17.9% 1.0%
Publix Super Markets Dec 1,552 1,492 60 4.0% 4.2% 0.2%
YUM Brands Dec 1,538 1,383 155 11.2% 13.2% 2.0%
Best Buy Feb 1,432 1,520 (88) -5.8% 4.9% 10.7%
Macy's Jan 1,426 1,240 186 15.0% 20.1% 5.1%
Starbucks Sep 1,384 1,170 214 18.3% 17.8% -0.5%
GAP Jan 1,135 833 302 36.3% 49.4% 13.1%
Kohl's Jan 986 1,167 (181) -15.5% -3.0% 12.5%

Total all 14
45,332 41,816 3,516 8.4% 12.6% 4.2%

Late Addition:

Krogers Jan 1,364 1,296 68 5.2% 16.1% 10.9%