Earnings Preview for Jun 22-26
We'll see another round of early second-quarter results this week. A total of 42 companies are scheduled to report, including 14 S&P 500 members. Oracle (ORCL - Snapshot Report), Micron (MU - Snapshot Report) and Monsanto (MON - Snapshot Report) will be among the mostly closely-watched reports.
The Fed will also grab traders' attention. A 2-day meeting is scheduled for Tuesday and Wednesday. No change in interest rates is expected, but traders will be listening for an update on the Fed's debt purchase program. The statement should also allude to signs of improvement in economic conditions.
On Thursday, Fed Chairman Ben Bernanke will again be in the spotlight. Bernanke will testify before a House committee about Bank of America's (BAC - Analyst Report) acquisition of Merrill Lynch.
Housing data headlines the economic calendar. The release of new and existing homes sales will be matched with results from KB Home (KBH - Snapshot Report) and Lennar (LEN - Snapshot Report).
- Tuesday: May existing home sales
- Wednesday: May durable goods orders, May new home sales, weekly crude inventories, Fed statement
- Thursday: Final Q1 GDP, weekly initial jobless claims
- Friday: May personal income and spending, June revised University of Michigan consumer confidence
The Treasury Department will auction a record $104 billion worth of bonds. The securities being sold are 2-, 5- and 7-year notes.
We haven't seen any end-of-quarter window dressing yet, though I still expect it to occur. Many money managers have been sitting on the sidelines - as is evident by the light volume - and are likely underperforming their benchmarks. This could cause them to move into some of the momentum stocks.
As far as the Fed meeting, I'm not expecting a big reaction, but it's hard to predict. Keep in mind that whatever happens on Wednesday afternoon could be reversed on Thursday.
Enjoy the summer weather.
Companies That Could Issue Positive Earnings Surprises
Late last month, CKE Restaurants (CKR - Snapshot Report) said its operating expenses, as a percentage of revenues, would be "essentially flat" with prior year levels. Though blended same-store sales were down, 2 of the covering analysts raised their forecasts after the announcement. The revisions pushed the consensus earnings estimate a penny higher to 24 cents per share. The most accurate estimate is even more bullish at 25 cents per share. The fast food chain has topped expectations during 2 out of the last 4 quarters. CKE Restaurants is scheduled to report on Thursday, Jun 25, before the start of trading.
Micron (MU - Snapshot Report) might just turn the tide and surprise to the upside. Though the company has missed expectations by wide margins during the past 3 quarters, fiscal third-quarter forecasts have been trending up recently. The consensus estimate calls for a loss of 43 cents per share, a penny better than a month ago. The most accurate estimate suggests far more upside, projecting a loss of just 36 cents per share. MU is scheduled to report on Thursday, Jun 25, after the close of trading.
Oracle (ORCL - Snapshot Report) has topped expectations during 8 out of the last 9 quarters. Ahead of the company's fiscal fourth-quarter report, 1 brokerage analyst raised his forecast. Though the revision was not significant enough to move the consensus earnings estimate from 43 cents per share, it did result in a slightly more bullish most accurate estimate of 44 cents. Oracle is scheduled to report on Tuesday, Jun 23, after the close of trading.
Companies That Could Issue Negative Earnings Surprises
KB Home (KBH - Snapshot Report) has missed expectations during 7 out of the last 9 quarters and earnings estimates are pointing to another disappointment. One analyst lowered his forecast recently, widening the consensus projection to a loss of 67 cents per share. The most accurate estimate is more bearish and calls for a loss of 70 cents per share.
Guidance could also be troublesome as fiscal 2009 estimates have worsened by 16 cents over the last 30 days. The consensus now calls for a full-year loss of $2.50 per share. KB Home is scheduled to report on Friday, Jun 26, before the start of trading.
Charles Rotblut, CFA is the senior market analyst for Zacks.com.
Earnings Calendar
Here is a list of companies that we have confirmed will report during the week of Jun 22 - 261. Prices are as of Thursday's, Jun 18, market close.
| Company | Stock | Zacks Estimate | Year Ago EPS | Last Qtr Surprise | Date | Time | Price |
| Smith & Wesson | SWHC - Snapshot Report | $0.10 | $0.08 | 150.0% | 6/22 | AMC | $4.93 |
| Walgreen Co | WAG - Analyst Report | $0.56 | $0.58 | (3.0%) | 6/22 | N/A | $31.72 |
| Aerovironment | AVAV - Snapshot Report | $0.26 | $0.30 | (22.2%) | 6/23 | AMC | $27.60 |
| Americas Car-Mt | CRMT - Snapshot Report | $0.38 | $0.51 | 8.8% | 6/23 | BTO | $17.65 |
| Apogee Entrprs | APOG - Analyst Report | $0.25 | $0.36 | 33.3% | 6/23 | AMC | $13.00 |
| Commercial Metl | CMC - Snapshot Report | ($0.13) | $0.50 | (375.0%) | 6/23 | BTO | $15.88 |
| Fuller(Hb) Co | FUL - Snapshot Report | $0.25 | $0.44 | 0.0% | 6/23 | AMC | $18.09 |
| Jabil Circuit | JBL - Analyst Report | ($0.02) | $0.22 | 57.1% | 6/23 | AMC | $6.90 |
| Kroger Co | KR - Analyst Report | $0.61 | $0.58 | 1.9% | 6/23 | BTO | $21.42 |
| Oracle Corp | ORCL - Snapshot Report | $0.43 | $0.45 | 9.7% | 6/23 | AMC | $20.25 |
| Sonic Corp | SONC - Snapshot Report | $0.21 | $0.28 | (11.1%) | 6/23 | AMC | $8.73 |
| Steelcase Inc | SCS - Snapshot Report | ($0.14) | $0.20 | (300.0%) | 6/23 | BTO | $5.10 |
| Bed Bath&Beyond | BBBY - Snapshot Report | $0.24 | $0.30 | 25.0% | 6/24 | AMC | $27.82 |
| Cke Restaurants | CKR - Snapshot Report | $0.24 | $0.31 | 0.0% | 6/24 | AMC | $8.54 |
| Darden Restrnt | DRI - Analyst Report | $0.86 | $0.78 | 17.6% | 6/24 | N/A | $33.54 |
| Herman Miller | MLHR - Snapshot Report | $0.18 | $0.71 | (14.3%) | 6/24 | AMC | $14.93 |
| Monsanto Co-New | MON - Snapshot Report | $1.17 | $1.45 | 2.9% | 6/24 | BTO | $82.30 |
| Nike Inc-B | NKE - Analyst Report | $0.96 | $0.98 | 23.8% | 6/24 | AMC | $56.30 |
| Omnova Solution | OMN - Snapshot Report | $0.08 | ($0.07) | 200.0% | 6/24 | BTO | $3.00 |
| Paychex Inc | PAYX - Snapshot Report | $0.33 | $0.38 | 0.0% | 6/24 | AMC | $26.80 |
| Red Hat Inc | RHT - Snapshot Report | $0.10 | $0.08 | 0.0% | 6/24 | AMC | $20.23 |
| Rite Aid Corp | RAD - Analyst Report | ($0.13) | ($0.20) | (27.3%) | 6/24 | BTO | $1.24 |
| Xyratex Ltd | XRTX - Snapshot Report | ($0.34) | $0.07 | -28.57% | 6/24 | AMC | $3.80 |
| Accenture Ltd | ACN - Snapshot Report | $0.64 | $0.74 | 1.6% | 6/25 | AMC | $32.02 |
| Amer Software A | AMSWA - Snapshot Report | $0.04 | $0.03 | 0.0% | 6/25 | AMC | $5.38 |
| Arcadia Rsrcs | KAD | $0.00 | ($0.02) | (100.0%) | 6/25 | BTO | $0.68 |
| Christopher&Bnk | CBK - Snapshot Report | ($0.05) | $0.32 | (1.6%) | 6/25 | AMC | $5.49 |
| Conagra Foods | CAG - Analyst Report | $0.41 | $0.44 | 8.1% | 6/25 | BTO | $18.96 |
| Electroglas Inc | EGLS | ($0.15) | ($0.15) | (6.3%) | 6/25 | N/A | $0.03 |
| Finish Line-Cla | FINL - Snapshot Report | $0.02 | $0.02 | 12.5% | 6/25 | AMC | $6.96 |
| Jackson Hewitt | JTX - Snapshot Report | $1.70 | $2.02 | 1.4% | 6/25 | BTO | $6.85 |
| Lennar Corp -A | LEN - Snapshot Report | ($0.57) | ($0.76) | 62.0% | 6/25 | BTO | $7.52 |
| Mccormick & Co | MKC - Snapshot Report | $0.41 | $0.39 | 0.0% | 6/25 | BTO | $32.14 |
| Micron Tech | MU - Snapshot Report | ($0.43) | ($0.29) | (35.0%) | 6/25 | N/A | $5.26 |
| Palm Inc | PALM - Snapshot Report | ($0.72) | ($0.27) | (35.4%) | 6/25 | AMC | $13.06 |
| Robbins & Myers | RBN - Snapshot Report | $0.25 | $0.62 | 12.2% | 6/25 | AMC | $21.11 |
| Smart Modular | SMOD - Snapshot Report | ($0.03) | $0.05 | 500.0% | 6/25 | N/A | $2.81 |
| Spectrum Contrl | SPEC | $0.17 | $0.16 | (15.0%) | 6/25 | AMC | $8.47 |
| Standard Micros | SMSC - Snapshot Report | ($0.32) | $0.20 | (5.9%) | 6/25 | BTO | $18.96 |
| Tibco Software | TIBX - Snapshot Report | $0.07 | $0.05 | 16.7% | 6/25 | AMC | $6.17 |
| Kb Home | KBH - Snapshot Report | ($0.67) | ($3.30) | 12.8% | 6/26 | BTO | $13.19 |
| Shaw Comms-Cl B | SJR - Analyst Report | $0.27 | $0.30 | (4.0%) | 6/26 | N/A | $16.74 |
BTO = Before The Market Open, AMC = After The Market Close
1Some of the companies listed in the earnings calendar may not be in the Zacks Rank universe.