Big-Name Earnings Reports to Watch This Week for 2 Dividend Firms

Last week was a pretty big week for earnings. In our article last week, we highlighted some of the biggest names that posted  results, which happened to be Canadian banks and major retailers.

TD Bank (NYSE: TD) an Bank of Nova Scotia (NYSE: BNS) both reported earnings growth for the first quarter, sending shares upward.

On the other hand, the earnings reports of the retailers, Target (NYSE: TGT) and Lowe’s (NYSE: LOW), told a much different story. Target shares plunged after disappointing earnings (the stock is down over 16% since it reported earnings last week). However, Lowe’s smashed estimates, sending shares upward.

Moving forward, we still have a few major companies reporting quarterly financial results this week. The stocks below are some of the most important earnings releases this week for dividend investors. These companies, H&R Block and Vail Resorts, are both subject to seasonality, meaning that they are only profitable during certain times of the year. It is important to understand when a stock is subject to seasonality. These losses are not a bad thing, and are typically not viewed as negative news for a company. However, due to the nature of the businesses, there may be higher risk since profits must be made in a shorter period of time.

H & R Block Inc (NYSE: HRB)
It is on the mind of every American – its tax season. It may seem like the perfect time to talk about  H & R Block’s stock, but there’s no reason to get excited about this tax preparer…yet. The company is only typically profitable during its first quarter, due to the seasonality of its business.
The company will report earnings on Tuesday, March 7 after the closing bell. It is expected to post a loss of -$0.46, compared to a loss of -$0.34, a year ago. During its next release, however, it is expected that HRB will report a profit.
Last year, the company beat estimates for its first quarter, but indicated that it had been a bad tax season for both in-person and its digital service. At the same time, it announced lay offs for employees. The financials weren’t too bad for dividend investors, though, as the company boosted its dividend 10%. The stock currently has a dividend yield of about 4.2%. Shares of H&R Block are down about 25% in the last twelve months. The stock is currently trading at 12 times its future earnings estimates.
Quarter Ended Actual EPS Results Analyst Estimates
October 2016 -$0.67 -$0.68
July 2016 -$0.55 -$0.53
April 2016 $3.16 $3.15
January 2016 -$0.34 -$0.26
Vail Resorts, Inc. (NYSE: MTN)
Vail Resorts is a mountain resort  company that focuses on skiing and snowboarding, so its not a surprise that it is only profitable during winter seasons. The company is expected to report a net profit of $3.45 per share, higher than last years’s EPS of $3.14. It will release its quarterly financial results before the opening bell on Friday, March 10.
The company paid its last dividend in January and will likely increase its dividend at its next payout in April. Since 2011, when it initiated its dividend, it has raised its dividend every year, and has been generous with its increases. Currently, the stock has a dividend yield of approximately 1.8%. In the last twelve month, shares of Vail Resorts are up more than 40%.
Quarter Ended Actual EPS Results Analyst Estimates
October 2016 -$1.70 -$1.57
July 2016 -$1.80 -$1.67
April 2016 $4.23 $4.20
January 2016 $3.14 $2.92

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