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Zacks Earnings Preview: Alcoa, Inc., Family Dollar Stores, Inc., Bed Bath & Beyond and Constellation Brands
For Immediate Release
Chicago, IL - Apr 6, 2009 - Zacks.com releases the list of companies likely to issue earnings surprises. This week’s list includes Alcoa, Inc. (AA - Analyst Report) and Family Dollar Stores, Inc. (FDO - Analyst Report). Also reporting are Bed Bath & Beyond (BBBY - Analyst Report) and Constellation Brands (STZ - Analyst Report). To see more earnings analysis, visit http://at.zacks.com/?id=3207.
Every day, Zacks.com makes 4 stock picks available, free of charge. To see them, go to http://at.zacks.com/?id=3567.
The Week's Events
First-quarter earnings season "officially" starts on Tuesday afternoon with Alcoa's (AA - Analyst Report) report.
Per share earnings for the S&P 500 (SPX) are projected to have fallen 13.9%. Median company earnings are likely to be worse, down 21%. (The difference is that median earnings are not weighted, whereas index earnings are.) More than 370 companies could report a year-over-year drop in profits.
The big keys for first-quarter earnings season will be whether actual results are not as bad as feared and how much visibility do companies have. If a super-majority of companies can surpass expectations, then the numbers could give the market an additional boost.
Joining AA this week will be 29 other companies, including S&P 500 members Bed Bath & Beyond (BBBY - Analyst Report), Constellation Brands (STZ - Analyst Report) and Family Dollar Stores, Inc. (FDO - Analyst Report).
The minutes from the March Fed meeting will be released on Wednesday afternoon (about 2 p.m.). The reaction to the notes could cause volatility in both the bond and equity markets.
- Tuesday: February consumer credit
- Wednesday: February wholesale inventories, March Fed minutes, weekly crude inventories
- Thursday: March import and export prices, February trade balance, weekly initial jobless claims
Fed governor Kevin Warsh will speak about the financial markets at a conference in Washington D.C. on Monday afternoon.
The U.S. markets will be closed on Friday in observance of Good Friday. Have a happy Easter and a good Pesach. (Find that afikomen!)
Companies That Could Issue Positive Earnings Surprises
Thrifty consumers drove same-store sales at Family Dollar Stores, Inc. (FDO - Analyst Report) 6.4% higher last quarter. This strong performance prompted the discount retailer to guide for fiscal second-quarter profits of 59 to 61 cents per share. Brokerage analysts, who had been projecting earnings of 50 cents per share, promptly raised their forecasts to 60 cents per share. FDO has topped expectations during 6 out of the last 7 quarters. Family Dollar Stores is scheduled to report on Wednesday, Apr 8, before the start of trading.
Companies That Could Issue Negative Earnings Surprises
About half of the covering brokerage analysts have cut their first-quarter profit projections on Alcoa, Inc. (AA - Analyst Report) in recent weeks. The revisions have widened the projected loss by 19 cents to 51 cents per share. The most accurate estimate is more bearish and calls for a loss of 58 cents per share. AA has disappointed during 3 out of the last 4 quarters. As noted above, Alcoa is scheduled to report on Tuesday, Apr 7, after the close of trading.
Charles Rotblut, CFA is the senior market analyst for Zacks.com.
Want to turn earnings surprises into quick profits? Learn how by visiting http://at.zacks.com/?id=3206.
About the Zacks Rank
Since 1988, the Zacks Rank has proven that "Earnings estimate revisions are the most powerful force impacting stock prices." Since inception in 1988, #1 Rank Stocks have generated an average annual return of +28%. During the 2000-2002 bear market, Zacks #1 Rank stocks gained +43.8%, while the S&P 500 tumbled -37.6%. Also note that the Zacks Rank system has just as many Strong Sell recommendations (Rank #5) as Strong Buy recommendations (Rank #1). Since 1988, Zacks Rank #5 stocks have underperformed the S&P 500 by 82% annually (+2% versus +10%). Thus, the Zacks Rank system allows investors to truly manage portfolio trading effectively.
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Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release. Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.
Contact: Charles Rotblut, CFA
Company: Zacks.com
Phone: 312-265-9352
Email: pr@zacks.com
Visit: www.Zacks.com
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