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The week in preview: Some expected earnings winners

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The earnings crunch rolls on this coming week, with quarterly reports expected from Coach Inc. (NYSE: COH), Exxon Mobil (NYSE: XOM), Kellogg (NYSE: K), MasterCard (NYSE: MA), Motorola (NYSE: MOT), Sprint Nextel (NYSE: S), Travelers (NYSE: TRV), Time Warner (NYSE: TWX), U.S. Steel (NYSE: X), Viacom (NYSE: VIA), Walt Disney (NYSE: DIS), and many others.

Below are some reporting companies for which analysts surveyed by Thomson Reuters have high hopes. What does that mean? Well, all of them are expected to report double-digit earnings grown in the most recent quarter. They have tended to offer positive surprises in recent quarters. They have long-term EPS growth forecasts of greater than 10%, and they have earnings multiples that are higher than their industry or sector averages, or higher than at least one top competitor. And they all have First Call consensus recommendations to buy.

Solar panel maker First Solar Inc. (NASDAQ: FSLR) announced a new, multiyear contract and secured financing for a new solar power plant in the second quarter. The Tempe, Ariz.-based company is expected to report that earnings rose 47.5% from a year ago to $1.62 per share. Revenue is expected to total $460.3 million, a whooping 72.4% higher. First Solar reported more cash on hand than long term debt in the previous quarter. While some are expecting disappointing second-quarter results in the sector, solar companies are looking for stimulus funds to beginning flowing in the second half. Shares are up 14.9% in the past three months to $169.43, but they are still well off the 52-week high of $301.30.

Green Mountain Coffee Roasters Inc. (NASDAQ: GMCR) sells coffee, tea, and other products to the likes of McDonald's (NYSE: MCD), convenience stores, and supermarkets. In its fiscal third quarter, the Vermont-based company announced a stock split and a distribution deal with Walmart (NYSE: WMT). Analysts are looking for Green Mountain to report that earnings rose 39.3% from a year ago to $0.28 per share. Revenue is expected to come to $191.0 million, which is 61.7% higher. The share price is up 9.7% since the stock split in June, and reached a multiyear high of $69.74 last week.

Recession-weary working adults trying to keep themselves marketable have been a boon to for-profit secondary education companies such as Strayer Education Inc. (NASDAQ: STRA). Founded in 1892, Strayer University has more than 40,000 students. The Arlington, Va.-based company is expected to post a second-quarter profit that is 23.9% higher to $1.97 per share. Revenue is expected to total $124.9 million, up 27.5% from a year ago. This debt-free company pays a quarterly dividend of $0.50 per share, but TheStreet.com likes Strayer for its growth potential. At $215.84, shares are 18.6% higher than three months ago, but only 0.7% higher than at the beginning of the year.

With more than 1,200 bakery-cafés in the U.S. and Canada, Panera Bread Co. (NASDAQ: PNRA) is hanging on during the economic slump as competitors struggle. In the second quarter, Panera was recognized as a customer favorite in a Zagat Survey, and the Missouri-based casual restaurant operator is expected to report earnings of $0.64 per share, up 18.8% from a year ago. Revenue is expected have risen just 3.2% to $331.2 million. Panera reported no long-term debt in the previous quarter. (See also Panera's recipe for the recession: Let the dough rise.) Shares have dropped 13.4% in the past three months to $55.18, but they are still up 19.1% from a year ago.

Stericycle Inc. (NASDAQ: SRCL) specializes in the processing and treatment of medical waste. For the second quarter during which Stericycle announced the acquisition of a privately held competitor, it is expected to report earnings of $0.51 on revenue of $293.0 million. That's compares to $0.44 on revenue of $277.8 million in the year ago quarter. TheStreet.com likes Stericycle for its returns and growth potential, despite concerns about its balance sheet. Analysts on average rate SRCL a strong buy. Shares have hovered around the $50 range the past couple of months, supported by the 100-day moving average, and closed at $51.58 Friday, which is down 12.4% from a year ago.

Auto parts and accessories retailer O'Reilly Automotive Inc. (NASDAQ: ORLY) introduced a buy-online-pick-up-in-person option and also saw a change in its board in the second quarter. Analysts are looking for $0.55 per share earnings and revenue of $1.2 billion. That compares to $0.48 per share on $704.4 million in the year-ago quarter--a 74.7% increase in sales. The share price reached a multiyear high of $41.55 last week, and is up 62.4% since the beginning of the year.

MasterCard Inc. (NYSE: MA) declared a cash dividend and reelected four board members at its annual meeting in June. For the second quarter, the credit card giant's earnings are forecast to come to $2.42 per share on revenue of $1.3 billion. While that represents a 12.8% increase in earnings, that revenue is the same as in the year-ago period. MasterCard does have much more cash on hand than long term, according its last report. At $185.47, the share price is up only 7.2% from the beginning of the year, and still 28.3% lower than a year ago.

And finally, Aflac Inc. (NYSE: AFL), one of the largest sellers of supplemental insurance in the U.S. For the second quarter during which it was recognized as the most reputable company in the insurance industry, Aflac is expected to report earnings of $1.14 on revenue of $4.7 billion. That's up from $1.01 per share on of $4.3 billion in the same period of last year. The Motley Fool likes Aflac for its return and its dividend. At $35.87, shares are up 25.3% from three months ago, but still 21.8% lower year-to-date.

Visit AOL Money & Finance for more earnings coverage.

Symbol Lookup
IndexesChangePrice
DJIA-17.2410,433.71
NASDAQ-6.832,169.18
S&P 500-0.591,105.65

Last updated: November 24, 2009: 11:04 PM

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