Summer is winding down and so is another earnings season. Most of the S&P 500 have reported results for the past quarter, but there are still a few things of note coming up this week.
In its second quarter, Shanda Interactive Entertainment Ltd. (NASDAQ: SNDA), one of the largest entertainment media companies in China, announced plans for an IPO for its Shanda Games business and bought a majority stake in music producer and distributor.
Analysts surveyed by Thomson Reuters expect Shanda to report that earnings for the three months ending in June grew 32.5% from a year ago to $0.83 per share. Revenue for the quarter is expected to be 46.5% higher to $178.8 million. Analysts also expect sequential earnings and sales growth in the current quarter. The Shanghai-based company has topped earnings expectations in recent quarters, by as much as 13 cents per share. The long-term EPS growth forecast is 17.7%, and its earnings multiple is 13x. The First Call consensus recommendation is to buy SNDA, and it was a recent SmartMoney pick. Shares have fallen 7.0% in the past three months (dropping below the 100-day moving average for the first time since December) to $51.16.
Aerospace company and defense contractor Esterline Technologies Corp. (NYSE: ESL) saw the appointment of a new president and chief operating officer in its fiscal third quarter. Earnings for the three months ending in July are expected to have grown 24.4% from a year ago to $0.90 per share. But revenue for the quarter is expected to be 3.8% lower, or $367.7 million. For the full year, the forecast so far is for $3.09 per share (-21.6%) on $1.4 billion (-4.9%). Earnings fell short of estimates in the past two quarters. But the long-term EPS growth forecast is 18.3%, which is better than that of competitor Goodrich Corp. (NYSE: GR). Esterline's earnings multiple is only 9.1x, and analysts on average have recommended buying ESL for more than 90 days. At $31.43, shares are up 7.5% from three months ago (peeking above the 200-day moving average for the first time in nearly a year), but they are still 17.1% lower than a year ago.
San Diego-based SAIC Inc. (NYSE: SAI) acquired a product-testing firm, as well as saw its CEO and its COO step down, in the period that ended in July. Earnings for its second quarter are expected to be 13.3% higher to $0.30 per share. Revenue for the quarter is expected to come to $2.7 billion, or 6.6% higher than a year ago. For the full year, the forecast so far is for $1.24 per share (+11.3%) on $10.9 billion (+7.9%). This government services provider has met or beat profit expectations in recent quarters. The long-term EPS growth forecast is 12.4%, and its earnings multiple is 14x. The consensus recommendation remains to buy SAI; CNBC picked it as a defensive play. Shares are 6.2% higher than three months ago to $18.47, but that's still down 5.2% year to date.
Mining equipment maker Joy Global Inc. (NASDAQ: JOYG) is expected to report marginally lower earnings this week, but results could still please investors if they include an upside surprise and/or optimistic guidance. Analysts are looking for a fiscal third-quarter profit that is eight cents per share less than a year ago, or $0.95. Revenue is expected to be down slightly to $902.4 million. The forecast for the full year, though, is for $3.93 per share (+12.5%) on $3.5 billion (+2.8%). Earnings of this dividend-paying company have topped expectations in recent quarters, by 28 cents per share in the second quarter. The long-term EPS growth forecast is just 8.0%, but that's only a bit lower than rivals Bucyrus International Inc. (NASDAQ: BUCY) and Caterpillar Inc. (NYSE: CAT). Joy Global's earnings multiple is 12x. Analysts, on average, recommend buying JOYG; it was recently upgraded due to rising demand in China. Shares are up 18.9% in the past three months to $39.34, which is 45.6% lower than a year ago.
Another company expected to report slipping earnings is America's Cart Mart Inc. (NASDAQ: CRMT), the Bentonville, Ark.-based operator of used-car dealerships. Fiscal first-quarter earnings are expected to come to $0.41 per share, four cents less than a year ago. But sales are expected to have grown 3.1% to $77.9 million. Results are so far expected to be in the same ball park in the current quarter. Earnings have been better than expected in three of the past five quarters, only missing by two or three pennies per share when it did miss. The long-term EPS growth forecast is 15.0%, which is about the same as that of larger rival CarMax Inc. (NYSE: KMX). Its earnings multiple is 12x, much less than that of CarMax. America's Car-Mart's long-term debt has shrunk in recent quarters. The consensus recommendation is to buy CRMT; the Motley Fool considers it a bargain. Shares have surged 34.5% in the past three months and are creeping up on the 52-week high of $23.12.
Analysts are looking for more significant earnings declines from Brown-Forman Inc. (NYSE: BF.B), Collective Brands Inc. (NYSE: PSS), Greif Inc. (NYSE: GEF), Layne Christiensen Co. (NASDAQ: LAYN), and Sina Corp. (NASDAQ: SINA) when they report this week. On the other hand, Ciena Corp. (NASDAQ: CIEN), Hovnanian Enterprises Inc. (NYSE: HOV), Jackson-Hewitt Tax Service Inc. (NYSE: JTX), Movado Group Inc. (NYSE: MOV), Take-Two Interactive Software Inc. (NASDAQ: TTWO), and Zale Corp. (NYSE: ZLC) are expected to post net losses.
There's plenty going on elsewhere the financial calendar next week. Economic data due out includes construction spending and pending home sales for July (Tuesday morning), new motor vehicle sales for August (Tuesday afternoon), factory orders for July and revised productivity and costs for the second quarter (Wednesday morning), as well as the employment situation for August (Friday morning).
Also scheduled for this week are the Chicago Purchasing Manager Index (Monday morning), the ISM Manufacturing Survey (Tuesday morning), and the ISM Non-Manufacturing Survey (Thursday morning) for August.
Also look for the Federal Reserve to issue minutes from its meeting of August 11-12 Wednesday afternoon and for the Treasury Department to release the monthly Separate Trading of Registered Interest and Principal of Securities Program late Friday.











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