After the turn of the calendar page, quarterly reporting resumes this week. Analysts surveyed by Thomson Reuters are expecting to see strong earnings growth from fertilizer producer Mosaic Co. (NYSE: MOS), biotech giant Monsanto Co. (NYSE: MON), and Neogen Corp. (NASDAQ: NEOG), which produces food safety and animal health products. Mosaic's estimated earnings per share of $1.43 for the fiscal second quarter would be 41.9% higher than a year ago, and its revenue estimate of $3.0 billion is 36.7% higher. Monsanto's $0.59 per share projection for the fiscal first quarter is 22.0% higher and sales of $2.4 billion are up 14.9%. And Neogen's second-quarter $0.25 per share would be 12.0% higher, while its sales of $32.3 million are up 18.6%. All three have tended to beat expectations in recent quarters, and all three have buy recommendations from a consensus of analysts. Mosaic and Monsanto have recently announced dividends, and their share prices have fallen 62.3% and 39.0%, respectively, from a year ago. The share price of Neogen, which recently announced share buybacks, is only 0.8% lower.
Other companies expected to post modest earnings gains when they report this week include education company Apollo Group Inc. (NASDAQ: APOL), WD-40 Co. (NASDAQ: WDFC), and wine and spirits maker Constellation Brands Inc. (NYSE: STZ).
While expectations may be high for the above companies supporting food production, things are not so clear on the retail end. Minnesota-based supermarket chain and wholesaler Supervalu Inc. (NYSE: SVU) is expected to report a fiscal third-quarter profit of $0.61 per share, 7.6% lower than a year ago, on revenue of $10.2 billion (-0.3%). On the other hand, Great Atlantic & Pacific Tea Co. Inc. (NYSE: GAP), parent of the A&P grocery chain, is expected to post a third-quarter loss of $0.35 per share, compared to a year-ago profit of $1.73 per share, but with sales up 73.4% to $2.2 billion. But Family Dollar Stores Inc. (NYSE: FDO), where bargain shoppers can go for groceries and other household products, is expected to post fiscal first-quarter earnings 7.5% higher than a year ago, or $0.40 per share, on revenue of $1.8 billion (+4.3%). While Supervalu and A&P have been hit or miss with regard to analysts expectations in recent quarters, Family Dollar has offered only positive surprises in the past five quarters. In the past year, the share price of Supervalu and A&P have fallen 56.2% and 76.8% respectively (Supervalu hit a 17-year low in November). Family Dollar shares, however, are 47.7% higher, and the company was the best S&P 500 performer in 2008.
Analysts are also looking for a profit decline from housewares superstore Bed Bath & Beyond Inc. (NASDAQ: BBBY), whose big rival, privately-owned Linens 'n' Things, is in the process of bankruptcy liquidation. Bed Bath & Beyond's per-share earnings for the third quarter are expected to be 36.5% lower than a year ago, or $0.33, which is in line with the company's previously lowered guidance. Revenue is expected to come to $1.8 billion, 0.1% lower than a year ago. The New Jersey-based company has offered positive surprises in the past five quarters, by as much as 10.3%. But the CEO sold most of his stake in the company in October, and the share price fell to a multiyear low in November. Shares are only up 3.0% from a year ago, however.
Next week's anticipated earnings decliners also include Standard Microsystems Corp. (NASDAQ: SMSC) (see its revised outlook), Resources Global Professionals (NASDAQ: RECN), Rust-Oleum maker RPM International Inc. (NYSE: RPM), and Atlanta-based lighting products maker Acuity Brands Inc. (NYSE: AYI).
And from housewares to homebuilders, as KB Home (NYSE: KBH) is scheduled to report fourth-quarter numbers this week. Analysts are looking for a narrower loss of $1.19 per share (compared to a year-ago loss of $9.99 per share), but sales that are 61.6% lower than a year ago, or $792.8 million. Analysts have underestimated KB Home's losses in each of the past five quarters. In November, KB Home slashed its quarterly dividend and saw a change in its board of directors, and more recently the Los Angeles-based builder announced that it would leave the Atlanta market. Shares have doubled since hitting a multiyear low of $6.90 in November, and are down 31.3% from a year ago.