The earnings season is beginning to wind down as we have passed the halfway mark of the quarter and the holiday season begins in earnest next week with Thanksgiving in the United States.
Bermuda-based Frontline Ltd. (NYSE: FRO) is anticipated by analysts surveyed by Thomson Reuters to be one of the biggest earnings gainers among companies scheduled to report quarterly results this coming week. The oil tanker fleet operator is expected to post third-quarter earnings of $1.97 per share, 86.8% higher than in the same period a year ago, on revenues of $399.5 million (+44.6%). Frontline missed estimates by 6.4% in the previous quarter, and the consensus recommendation by analysts is to hold FRO. While Motley Fool likes its robust dividend, Jim Cramer said in a recent Lightning Round that he prefers rival Nordic American Tanker Shipping Ltd. (NYSE: NAT). Shares have fallen 52.9% in the past three months, and reached a 52-week low of $25.00 on Friday.
Analog Devices Inc. (NYSE: ADI) is also expected to be among the week's biggest earnings gainers. Analysts are looking for the semiconductor chip maker to report a fiscal fourth-quarter profit of $0.44 per share, 31.8% higher than a year ago, on revenues of $661.7 million (+2.0%). Analog Devices has beat estimates in three of the past five quarters, but only missed by 1.3% in the previous quarter. Analysts on average recommend buying ADI, which has a forecast long-term EPS growth rate of 17.3%, which better than the S&P 500 and that of rival Texas Instruments Inc. (NYSE: TXN). Shares sank to a multiyear low of $16.23 on Friday, and are down 41.1% in the past three months.
The weeks other anticipated earnings gainers include Hewlett-Packard Co. (NYSE: HPQ), Campbell Soup Co. (NYSE: CPB), and Deere & Co. (NYSE: DE).
Among the week's biggest expected earnings decliners is construction materials producer Texas Industries Inc. (NYSE: TXI), with its ongoing squabble between the board of directors and majority shareholder. Texas Industries recently declared a quarterly dividend, and is expected to report fiscal second-quarter earnings 75.2% lower than a year ago, or $0.26 per share, on revenue of $259.4 million (-3.4%). The Dallas-based cement maker easily beat estimates in three of the past four quarters, but then missed the consensus forecast by 50.6% in the first quarter as construction spending declined. Shares have fallen 55.7% in the past three months, and they fell to a multiyear low of $19.33 on Friday.
Brown Shoe Company Inc. (NYSE: BWS) is also expected to post a significant drop in third-quarter earnings. The parent of the Famous Footwear, Naturalizer, and FX LaSalle chains already warned of weakness after reporting disappointing same-store sales in September. Analysts are now looking for $0.17 per share, down 72.1% from a year ago, on revenue of $634.7 million (-1.7%). Brown Shoe has fallen short of estimates in most of the past five quarters, by 13.8% in the previous quarter. Shares fell to a multiyear low of $4.36 last week, and are down 72.2% in the past three months.
Rival footwear retailer DSW Inc. (NYSE: DWS) is expected to report lower profits this week as well. Other anticipated earnings decliners scheduled to report include J. Crew Group Inc. (NYSE: JCG), American Eagle Outfitters Inc. (NYSE: AEO), Hormel Foods Corp. (NYSE: HRL), and Bank of Montreal (NYSE: BMO), which leads off fourth-quarter reporting for the big Canadian banks.
Relatively good news for Borders Group Inc. (NYSE: BGP) in that analysts expect the number two bookstore operator in the U.S. to narrow its net loss by more than 20%. However, speculation continues about whether it can survive a disappointing holiday season.
D.R. Horton Inc. (NYSE: DHI), one of the top homebuilders in the U.S., is expected to widen its per-share loss to $1.88, from a loss of $0.16 per share a year ago. Revenue for the fiscal fourth quarter are expected to have fallen 45.1% to $1.7 billion as the housing slump deepens. Horton had already warned of a deep loss for the quarter, and the Texas-based company has reported deeper-than-forecast losses in four the past five quarters. On Friday, shares reached a multiyear low of $3.79. The share price is 61.9% lower than three months ago.
Zale Corp. (NYSE: ZLC), one of the leading jewelry retailers in North America, is likewise expected to deepen its fiscal first-quarter net loss, while rival Tiffany & Co. (NYSE: TIF) is expected to post a profit that is the same as in the year-ago quarter.
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