Much of the attention this week will no doubt be on how the impending General Motors (NYSE: GM) bankruptcy will shake out, as well as the usual economic concerns: Has the housing market bottomed? Will oil prices keep rising? Is the employment situation getting any better? And so on (see highlights of the economic calendar below).
What probably won't get much attention are quarterly earnings, as the earnings season for this quarter winds down. But there are a few reports that analysts surveyed by Thomson Reuters have high hopes for.
Analysts are looking for fiscal fourth-quarter earnings from DynCorp International Inc. (NASDAQ: DCP) that are 43.3% higher than a year ago, or $0.30 per share. Revenue for the quarter is expected to be 34.9% higher to $772.8 million. The forecast for the full-year results is $1.19 per share (+29.4%) on $3.1 billion (+43.1%). The Virginia-based service provider topped earnings expectations in two of the past three quarters, with the second quarter missing by two cents per share. The long-term EPS growth forecast is 10.0%, which is better than that of bigger rival KBR Inc. (NYSE: KBR). DynCorp's forward PE ratio estimate is 10.0. The First Call consensus recommendation is to buy DCP. Shares are up 18.7% in the past three months to $14.47, but they are still 13.9% lower than a year ago.
Milwaukee-based mining equipment maker Joy Global Inc. (NASDAQ: JOYG) is expected to report a profit of $0.89 per share for the second quarter, which is 25.8% higher than a year ago. Revenue is expected to be 3.6% higher to $873.5 million. Joy Global earnings have beat expectations in recent quarters, by as much as 15 cents per share. The long-term EPS growth forecast is only 8.0%, but that's better than rival Caterpillar Inc. (NYSE: CAT). Joy Global's forward PE ratio estimate is 10.0, and it recently announced a quarterly dividend. The consensus recommendation remains to buy JOYG; the company recently received an upgrade. Shares, which rose above the 200-day moving average last week, are up 50.6% since the beginning of the year to $34.47, but they are still 59.1% lower than a year ago.
Analysts expect Shanda Interactive Entertainment Ltd. (NASDAQ: SNDA), one of the largest operators of online games in China, to report a first-quarter profit of $0.74 per share, which is 24.3% higher than a year ago. Revenue is expected to be 40.1% higher to $155.7 million. The company's earnings topped estimates in the past five quarters, by as much as 13 cents per share. The long-term EPS growth forecast is 15.3%, and the cash-rich company's forward PE ratio estimate is 17.0, which is higher than that of rivals Perfect World Co. Ltd. (NASDAQ: PWRD) and Netease.com Inc. (NASDAQ: NTES). Analysts on average recommend buying SNDA. Shares reached a 52-week high of $58.00 last week.
For a fiscal fourth quarter that saw a reshuffling among its executives, hhgregg Inc. (NYSE: HGG) is expected to post a profit that is 21.9% higher than a year ago, or $0.41 per share. The electronics retailer's revenue for the quarter is estimated to total $364.8 million, which is 12.5% higher than a year ago. For the full year, analysts are looking for $1.10 per share (+2.7%) on $1.4 billion (+11.1%). The Indianapolis-based company's earnings have topped expectations in three of the past five quarters, by 31.6% in the third quarter. The long-term EPS growth forecast is 17.0% and the forward PE ratio estimate is 15.0, both of which are better than larger rival Best Buy Inc. (NYSE: BBY). The consensus recommendation is to buy HGG. Shares have surged 61.3% in the past three months, closing Friday at $16.55.
Companies expected to report a decline in earnings this week include Bob Evans Farms Inc. (NASDAQ: BOBE), Collective Brands Inc. (NYSE: PSS), Guess Inc. (NYSE: GES), and Vail Resorts Inc. (NYSE: MTN). Analysts expect Ciena Corp. (NASDAQ: CIEN) Lions Gate Entertainment Corp. (NYSE: LGF), and Williams-Sonoma Inc. (NYSE: WSM) to have swung to a loss in the most recent quarter. Homebuilders Hovnanian Enterprises Inc. (NYSE: HOV) and Toll Brothers Inc. (NYSE: TOL), however, are expected to have narrowed their net losses despite further declines in revenue.
Getting back to those economic worries mentioned above, here's some data we're scheduled see released this week:
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Monday: construction spending for April, ISM Manufacturing Survey for May, and personal income for April.
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Tuesday: new motor vehicle sales for May and pending home sales for April.
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Wednesday: factory orders for April, ISM Non-Manufacturing Survey for May, and Challenger Job-Cut Announcements for May.
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Thursday: productivity and costs, revised for Q1, Monster Employment Index for May, and public debt for May.
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Friday: consumer credit for April and employment situation for May.
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