On Tuesday, the Federal Reserve's FOMC holds two-day meeting on interest rates and will announce its decision on Wednesday. The Fed's Ben Bernanke will still be out and about this week, discussing the failure of Lehman Brothers later today, and ending up the week speaking at the Independent Community Bankers of America National Convention and Techworld.
Manufacturing will be in focus this week, starting with industrial production numbers for February and the Empire State Manufacturing Survey Diffusion Index for March scheduled to be released Monday morning. Tuesday morning will bring us the Producer Price Index for February, and Thursday morning comes the Philadelphia Fed Outlook Survey -- Diffusion Index Manufacturing for March.
We will also see some housing numbers this week, specifically National Association of Home Builders Housing Market Index for March on Monday, and housing starts for February on Tuesday. In addition, the Consumer Price Index for February is scheduled for Wednesday morning.
This coming week there won't be much in the way of good earnings news to help stretch out last week's rally. Adobe Systems Inc. (NASDAQ: ADBE), Nike Inc. (NYSE: NKE), Barnes & Noble Inc. (NYSE: BKS), FedEx Corp. (NYSE: FDX), and Darden Restaurants Inc. (NYSE: DRI) are expected by analysts surveyed by Thomson Reuters to post lower quarterly profits, while Discover Financial Services (NYSE: DFS), Winnebago Industries Inc. (NYSE: WGO) and Shoe Carnival Inc. (NASDAQ: SCVL) are expected to have sung to losses.
Of course there will be some modest earnings gainers as well, including Oracle Corp. (NASDAQ: ORCL), General Mills Inc. (NYSE: GIS), Ross Stores Inc. (NASDAQ: ROST) and Children's Place Retail Stores Inc. (NASDAQ: PLCE). But here's a closer look at some of the week's biggest anticipated earnings gainers:
Wimm-Bill-Dann Foods (NYSE: WBD), Russia's largest dairy company, is expected to report fourth-quarter earnings of $1.99 per share, 60.8% higher than a year ago, and revenue of $1.8 billion, up 163.1%. But for the full year, the forecast is for a profit of $3.01 per share on $2.8 billion in sales, compared to $3.18 per share and $2.4 billion in the previous year. While Wimm-Bill-Dann has fallen short of earnings estimates in the recent quarters, the long-term EPS growth forecast is 14.5% and the forward PE ratio estimate is 12.0. In the third quarter, the company had more debt than cash, and it recently secured a credit line worth more than $93 million. The share price has risen 14.0% since the beginning of the year to $30.00 but is still 70.0% lower than it was a year ago.
For a fourth quarter that saw it close 22 stores, analysts expect Jackson, Tenn.-based Kirkland's Inc. (NASDAQ: KIRK) to report earnings of $0.52 per share, 57.7% higher than in the same period of the previous year, and revenue of $133.6 million, which is in line with already released sales results. For the full year, the purveyor of home decor accessories and gifts is expected to post earnings of $0.23 per share on revenue $388.8 million, compared to a loss of $1.04 per share and sales of $395.9 million in the previous year. Kirkland's posted narrower-than-expected losses in the past three quarters. The long-term EPS growth forecast is 15.0%, which is better than the S&P 500 and that of rival Bed Bath & Beyond (NASDAQ: BBBY). While Kirkland's only had about $2 million in cash at the end of the past quarter, it also had no debt. The share price is 8.7% higher since the beginning of the year, but has fallen 7.4% to $2.88 in the past month.
After two quarters of losses, Blockbuster Inc. (NASDAQ: BBI) is expected to report fourth-quarter earnings of $0.25 per on revenue of $1.5 billion share, compared to $0.18 per on revenue of $1.6 billion in the year-ago period. Blockbuster already said its same-store sales increased in the quarter, which included the holiday shopping season. For the full year, the forecast is a profit of $0.17 per share on $5.4 billion in sales, compared to a loss of $0.87 per on revenue of $5.5 billion in the year-ago period. The consensus recommendation of analysts is to buy BBI, even though it also finds itself with much more debt than cash, a problem not shared by rival Netflix Inc. (NASDAQ: NFLX). Blockbuster shares fell to a 52-week low of $0.13 recently, but bounced to $0.65 at the close on Friday.
From Boston-based CRA International Inc. (NASDAQ: CRAI), a consulting firm, analysts expect to see fiscal first-quarter earnings of $0.38 per share on revenue of $73.7 million, compared to $0.28 per share on revenue of $86.1 million in the same period of the previous year. Looking ahead to the second quarter, analysts so far expect earnings of $0.44 per share on sales of $78.7 million. CRA topped earnings in three of the past four quarters, by as much as nearly 21%. The long-term EPS growth forecast of 25.1% and the forward PE ratio forecast is about 9.1, but the consensus recommend of five analysts remains to hold CRAI. The share price fell to a 52-week low of $19.30 last week and is 22.9% lower than it was a year ago.
Sina Corp. (NASDAQ: SINA), which operates the Sina.com web portal, acquired Focus Media Holding Ltd.'s (NASDAQ: FMCN) digital out-of-home advertising networks in the fourth quarter. The Shanghai-based company is expected to post a profit of $0.45 per share on revenue of $99.4 million, compared to $0.34 per share on revenue of $70.7 million in the same period of the previous year. For the full year, earnings are expected to come to $1.65 per share on sales of $367.7 million, compared to $1.12 per share and $246.1 million in the previous year. Sina topped earnings estimates in recent quarters, by as much as 24.5%. The long-term EPS growth forecast is 28.8%, which is better than that of bigger rival Yahoo Inc. (NASDAQ: YHOO). The forward PE ratio forecast is about 12.0. Analysts, on average, recommend buying SINA. Its share price recently fell to a 52-week low of $18.80 and is now 41.7% lower than a year ago.
Back in January, Neogen Corp. (NASDAQ: NEOG) posted record results for its fiscal second quarter. For the third quarter, analysts are looking for its profit to have grown 18.2% from a year ago to $0.21 per share. Revenue is expected to have risen 14.2% to of $28.8 million. For the full year, analysts are so far looking for earnings of $0.95 per share on sales of $119.3 million. The Michigan-based food safety company topped earnings estimates in recent quarters. The long-term EPS growth forecast is 18.2% and the forward PE ratio forecast is about 20.0. The consensus recommend is to buy NEOG; TheStreet.com recently called it a top five small-cap stock. It also has no debt to speak of. The share price fell to a 52-week low of $17.87 last week, and is now 24.3% lower than a year ago.
| Fed's interest rate decision | |
|---|---|
| Manufacturing numbers | |
| Housing numbers | |
| Blockbuster's Q4 report | |
| Companies reporting earnings growth | |
| Other (specify in comments) |
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