While the earnings crunch for this quarter is all but over, there is still plenty of action in the earnings arena this coming week. For instance, analysts surveyed by Thomson Financial are expecting America's Car Mart Inc. (NASDAQ: CRMT) and Campbell Soup Co. (NYSE: CPB) to be among this week's top earnings gainers.
Bentonville, Ark.-based America's Car Mart is expected to post net income of 38 cents per share (up 52.6% from the same period a year ago) on revenue of $73.8 million (up 25.8%). The used car dealer chain has tended in recent quarters toward positive surprises -- by 21 cents per share, or 73.5%, in the previous quarter. The long-term EPS growth forecast is 15%, about the same as the S&P 500. The consensus recommendation of analysts is to buy CRMT.
Campell is tentatively scheduled to report this week, and the world's biggest soup maker is expected to post net income of 25 cents per share (up 44.0% from a year ago) on revenue of $1.7 billion (up 7.5%). The Camden, N.J.-based company has just missed earnings estimates in the past three quarters. Its long-term EPS growth forecast is 7.5%, which is less than the industry average, but about the same as rivals Kraft Foods (NYSE: KFT) and Heinz (NYSE: HNZ). The analysts' consensus recommendation is currently to buy Campbell.
Other anticipated double-digit earnings gainers scheduled to report this week include brand name apparel maker Guess Inc. (NYSE: GES), mining equipment maker Joy Global (NASDAQ: JOYG), and chip maker National Semiconductor (NYSE: NSM). And Take-Two Interactive Software (NASDAQ: TTWO) is expected to swing to a profit.
Among the anticipated earnings decliners to report this week are telecoms ADC Telecommunications (NASDAQ: ADCT) and Ciena Corp. (NASDAQ: CIEN).
ADC, whose customers include Ciena and Time Warner Cable (NYSE: TWC), is expected to post net income of 26 cents per share (down 29.7% from a year ago) on revenue of $388.7 million (up 12.3%). The Minnesota-based company has easily topped estimates in the past few quarters. The long-term EPS growth forecast for ADC is 11.4%, less than the S&P 500, but the consensus recommendation of analysts is to buy ADC.
Maryland-based Ciena is expected to report earnings of 37 cents per share (down 9.8% from a year ago) on revenue of $253.7 million (up 23.8%). In the past few quarters, the company has offered positive surprises -- by as much as 32.6% over estimates. Ciena's long-term EPS growth forecast is 16.5%, which is better than competitors Alcatel-Lucent (NYSE: ALU) and Cisco Systems (NASDAQ: CSCO). The consensus recommendation is to buy Ciena, which recently has been trading near its 52-week low.
This week's other expected double-digit earnings decliners include footwear retailer Collective Brands (NYSE: PSS), office supply superstore Staples (NASDAQ: SPLS), and convenience store chain Casey's General Stores (NASDAQ: CASY).
Reflecting the ongoing housing slump, homebuilders Hovnanian Enterprises (NYSE: HOV) and Toll Brothers (NYSE: TOL) are among companies expected to report a quarterly loss this week.
Analysts anticipate a net loss of $1.56 per share from New Jersey-based Hovnanian, as well as revenue of $713.4 million (down 36.9%). That's compared to a loss of $1.27 per share in the same period of the previous year, but less than the $5.29 per-share loss of the previous quarter. However, Hovnanian has served up negative surprises in the past few quarters. The company's long-range growth forecast is only 6%, and analysts on average rate HOV as underperforming. Shares have been trading near the 52-week low.
Pennsylvania-based Toll Brothers is expected to post a loss of 19 cents per share on revenue of $764.1 million (down 37.0%). The luxury homebuilder reported a loss of 59 cents per share in the previous quarter, but a profit 16 cents per share a year ago -- the last time Toll Brothers reported a quarterly profit. While the company's long-range growth forecast is 9.5%, analysts on average recommend buying TOL.
Also, tax preparers H&R Block (NYSE: HRB) and Jackson-Hewitt (NYSE: JTX) are expected to post wider losses when they report their off-season results this week.
Other economic data scheduled to be released this week include:
- ISM manufacturing survey (Aug. 2008): Tuesday 10:00 AM
- Construction spending (Jul. 2008): Tuesday 10:00 AM
- Factory orders (Jul. 2008): Wednesday 10:00 AM
- New motor vehicle sales (Aug. 2008): Wednesday 4:00 PM
- Productivity and costs (revised) (Q2 2008): Thursday 8:30 AM
- ISM nonmanufacturing survey (Aug. 2008): Thursday 10:00 AM
- Employment situation (Aug. 2008): Friday 8:30 AM
- Public debt (Aug. 2008): Friday 3:00 PM
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