As the calendar quarter winds down, let's take look at some of this coming week's biggest expected earnings gainers.
Analysts surveyed by Thomson Reuters expect Memphis-based Fred's Inc. (NASDAQ: FRED) to report fourth-quarter earnings of $0.22 per share, 36.4% higher than a year ago, and revenue of $472.5 million, down 4.4%. For the full year, the forecast is for a profit of $0.66 per share on revenue of $1.8 billion, compared to $0.52 per share and $1.8 billion in the previous year. The discount retailer beat or met earnings estimates in the past three quarters. The long-term EPS growth forecast is 14.0%, which is better than the industry average and that of larger rival Walmart Stores Inc. (NYSE: WMT), and the forward PE ratio estimate is 15.0. In the third quarter, the company had more cash than debt. The consensus recommendation of analysts is to buy FRED. The share price has risen 2.7% since the beginning of the year to $11.05.
For a fourth quarter that saw the appointment of a new CEO, analysts expect global freight forwarder UTi Worldwide Inc. (NASDAQ: UTIW) to report earnings of $0.23 per share, 21.7% higher than in the same period of the previous year, and revenue of $1.1 billion. For the full year, the Virgin Islands-based company is expected to post earnings of $1.05 per share on revenue $4.8 billion, compared to $0.99 per share and $4.4 billion in the previous year. UTIW topped estimates in four of the past five quarters, and only missed by a penny a share when it did miss. The long-term EPS growth forecast is 13.5%, and the forward PE ratio estimate is 12.0. Analysts, on average, give UTIW a strong buy rating; a Stifel Nicolaus analyst recently upgraded the stock due to the change in leadership and its sound business model. The share price of $12.31 is 14.2% lower since the beginning of the year, and it is 23.4% lower than a year ago.
Gamestop Corp. (NASDAQ: GME) saw record sales during the holiday season, and analysts are looking for fourth-quarter earnings of $1.34 per share (+14.9%) on revenue of $3.5 billion (20.5%). For the full year, the leading video game retailer is expected to post is a profit of $2.40 per share on revenue of $8.8 billion, compared to $1.80 per on $7.1 billion in the year-ago period. Gamestop beat earnings estimates in four of the past five quarters, but missed by three cents per share in the third quarter. The long-term EPS growth forecast is 17.9%, and the forward PE ratio estimate is 10.0, which is about the same as the industry average. The consensus recommendation of analysts remains to buy GME, and a recent study suggests a rosy outlook for used video game sellers like Gamestop. The share price of $24.85 is 1.0% higher than three months ago, but it is 50.5% lower than a year ago.
From San Diego-based SAIC Inc. (NASDAQ: SAI), a leading government services contractor, analysts expect to see fourth-quarter earnings of $0.29 per share (+13.8%) on revenue of $2.5 billion (+6.7%). For the full year, the forecast is for a profit of $1.09 per share on revenue of $10.1 billion, compared to $0.93 per share and $8.9 billion in the previous year. SAIC hasn't missed earnings estimates in past five quarters. The long-term EPS growth forecast is 13.8% and the forward PE ratio forecast is about 14.0, which is better than the industry average. SAIC continues to announce new contracts, such as a recent one with the Air Force and another for China. The consensus recommendation remains to buy SAIC. The share price of $16.98 is 10.8% lower than three months ago, and it is 7.3% lower than a year ago.
In the current economic climate, even companies with declining earnings can catch the eye of analysts and investors, if profits aren't slipping too much.
In its fiscal second quarter, which saw management changes and a workforce reduction, Walgreen Co. (NYSE: WAG) is expected to post a profit of $0.66 per share, down from $0.69 per share in the same period of the previous year. Revenue is expected to come to $16.4 billion, compared to $15.4 billion a year ago. For the full year, earnings are so far expected to come to $2.07 per share on sales of $62.9 billion, compared to $2.17 per share and $59.0 billion in the previous year. The nation's largest drugstore chain fell short of earnings estimates in two of the past five quarters. The long-term EPS growth forecast is 11.6%, which is better than the retail industry average. The forward PE ratio forecast is about 11.0. The consensus recommendation shifted from hold to buy WAG in the past quarter, and the Motley Fool recently featured it as a stock poised to pop. The share price of $24.29 is 6.9% lower than three months ago, and it is 33.9% lower than a year ago.
Accenture Ltd. (NASDAQ: ACN) is the world's largest consulting firm and one of Fortune's 100 best companies to work for. For its fiscal second quarter, analysts are looking for its profit to have fallen by two cents per share from a year ago to $0.62 per share. Revenue is expected to be down marginally to of $5.5 billion. In the third quarter, analysts forecast earnings and sales to rise to $0.74 per share on $5.8 billion. The Bermuda-based topped earnings estimates in recent quarters, by as much as 13.8%. The long-term EPS growth forecast is 11.5% and the forward PE ratio forecast is about 10.0. The consensus recommend has been to buy ACN for more than 90 days; the Motley Fool recently called it as stock cheaper than it appears. In the previous quarter, Accenture reported more than $2.7 billion in cash and not much debt. The share price has fallen 6.2% in the past three months to $30.20 and is 12.7% lower than a year ago.
Ohio-based industrial equipment maker Robbins & Myers Inc. (NYSE: RBN) is expect to report that fiscal second-quarter earnings fell to $0.41 per share from $0.47 a year ago. Revenue is expected to have fallen 5.8% to $174.1 million. Things aren't expected to change much in the third quarter: $0.40 per share on $172.4 million. However, Robins & Myers has topped earnings estimates in recent quarters, by as much as 31.0%. The long-term EPS growth forecast is only 9.3%, but analysts on average recommend buying RBN. The company reported having more cash on hand than debt in the previous period. The share price of $15.72 is 16.4% lower than three months ago, and it is 56.7% lower than a year ago.
Companies expected to report more significant quarterly earnings declines this week include Deutsche Bank (NYSE: DB), Tiffany & Co. (NYSE: TIF), Best Buy Inc. (NYSE: BBY), ConAgra Foods Inc. (NYSE: CAG), and Carnival Corp. (NYSE: CCL).
Elsewhere on the economic calendar, Treasury Secretary Tim Geithner is to testify before the House Financial Services Committee on Financial Regulation Reform Thursday morning, and Federal Reserve Bank of Dallas President Richard Fisher at the Redefining Investment Strategy Education (RISE) IX Conference Wednesday evening.
Existing home sales numbers for February are due Monday morning, while new housing sales for February is scheduled to be released Wednesday morning.
Look for durable goods orders numbers for February first thing Wednesday morning, and U.S. GDP for the fourth quarter Thursday morning.
Personal income for February and the University of Michigan Consumer Sentiment Index for March are both scheduled for Friday morning.










