Analysts surveyed by Thomson Financial expect Countrywide Financial (NYSE: CFC) to post a much smaller profit for the first quarter, while Archer Daniels Midland (NYSE: ADM) is expected to report a profit gain. Both companies are scheduled to report results Tuesday morning.
Countrywide Financial is expected to earn two cents per share, which is down 97% from the same period in 2007 when it earned 72 cents per share, but that swings from a loss of 79 cents per share in the most recent quarter. However, the company tended to fall short of earnings estimates even before the credit crunch set in; that fourth-quarter loss of 79 missed estimates by 163%.
Formerly one of the top residential mortgage lenders, California-based Countrywide Financial is being bought out by Bank of America (NYSE: BAC). In the past year, Countrywide's revenues were $24 billion, and its net income is in the red to the tune of $703.5 million. Not surprisingly, the consensus recommendation of analysts remains to hold CFC.
The stock has fallen 84.9% in the past year and closed Monday at $5.83.
ADM is expected to earn 69 cents per share, up 26.1% from the same period in 2007 when it earned 51 cents per share. The company has tended to beat quarterly estimates recently. In the third quarter of 2007, it beat the consensus estimate by 19.7%, but in the fourth quarter only by 1.4%.
The Decatur, Illinois-based grain-processing giant is benefiting from rising commodities prices and demand for ethanol. In the past year, ADM's revenues were $44 billion and its net income was $2.2 billion. The company's EPS growth forecast for the year is 28.1%, which is much better than both its industry and sector averages. The consensus recommendation of analysts is to buy ADM, and has been for more than 90 days.
The stock has risen 21.6% in the past year and trades at a P/E of 13.83. Shares closed Monday at $47.42.
For other news that could influence these results, see BloggingStocks' Countrywide Financial coverage and ADM coverage.
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Reader Comments (Page 1 of 1)
4-28-2008 @ 11:04PM
james carter said...
i hope it tumbles in the toilet they are nothing more than loan sharks. they will go bankrupt and be back screwing you in weeks.
4-29-2008 @ 3:46AM
Erikaduh said...
If you think country wide screws customers just look at good ol Bank of America and how they raised interest rates on their credit cards to default level highs on customers who have good credit scores and have never been late once. The on;y reason their offering help in the country wide deal is so regulators can make it look good while they themselves take in millions of dollars into their political coffers and Bank of America gets richer at the same time. This merger is no good for competition or the American people.