Much of the focus this week will no doubt be on the FOMC meeting on interest rates and the subsequent decision, as well as on the G-20 meeting in Pittsburgh, were the agenda will include bonuses for bank executives among other things.
Things will be fairly quiet again on the earnings front as the next earnings season has yet to ramp up. However, analysts surveyed by Thomson Reuters do have high hopes for a handful of companies that will release results this week.
Omaha-based packaged foods producer ConAgra Foods Inc. (NYSE: CAG) initiated a healthy choices initiative and declared a dividend in its fiscal first quarter 2010. Analysts expect it to report a profit of $0.34 per share, which is 20.6% higher than a year ago. Revenue for the period that ended in August is expected to be marginally higher to $3.1 billion. And analysts foresee sequential and year-over-year growth in both EPS and sales in the second quarter. Earnings have beat or matched estimates in recent quarters, topping them by as much as 9 cents per share. The long-term EPS growth forecast is 8.0%, which is better than the food and beverage industry average and that of rival H.J. Heinz Co. (NYSE: HNZ). ConAgra's earnings multiple is 13x. The Motley Fool found reasons to both "love" and "loathe" ConAgra. Shares are trading near a 52-week high of $22.44, and are up 60.9% since the March low.
In its fiscal second quarter 2010, Research In Motion Ltd. (NASDAQ: RIMM), the maker of the popular BlackBerry smartphone, released the new BlackBerry Tour. The Ontario-based company's earnings are expected to come to $1.00 per share, up from $0.86 per share in the year-ago period. Revenue for the period ending in August is expected to have surged 40.6% to $3.6 billion. Analysts predict sequential and year-over-year growth in both EPS and sales in the third quarter. Earnings haven't missed estimates in the past three quarters. The long-term EPS growth forecast is 20.6%, which is better than that of competitors Apple Inc. (NYSE: AAPL) and Nokia Inc. (NYSE: NOK). Short interest has dropped since June. iStockAnalyst expects RIM's Q2 results to be in line with expectations. Shares have struggled with resistance around $80 since May, and now at $83.61 they are 19.2% lower than a year ago.
AutoZone Inc. (NYSE: AZO), the largest auto parts chain in the U.S., announced a stock buyback program during its fiscal fourth quarter. Earnings for the three months ending in August are expected to have grown 12.8% from a year ago to $4.45 per share. But revenue is expected to be about the same as a year ago, or $2.2 billion. For the full year, the forecast is for $11.73 per share (+14.4%) on $6.8 billion (+4.4%). Earnings topped expectations in the past three quarters, by as much as 23 cents per share. AutoZone's earnings multiple is 11.0x, and the long-term EPS growth forecast is 12.2%. Short interest in this Memphis-based company has also been falling since March. Analysts on average have recommended holding AZO for more than 90 days, but Investopedia called it a shockproof stock. At $152.09, shares are 2.3% lower than three months ago.
Connecticut-based financial information provider FactSet Research Systems Inc. (NYSE: FDS) announced a reshuffling of its executives and declared a quarterly dividend in the period that ended in August. Earnings for the fiscal fourth quarter are expected to be 9.5% higher to $0.74 per share. Revenue for the quarter is expected to total $154.0 million, about the same as a year ago. For the full year, the forecast is for $2.90 per share (+13.8%) on $620.6 million (+7.8%). FactSet has beat profit expectations in recent quarters, by as much as 15.5%. The long-term EPS growth forecast is 14.8%, and its earnings multiple is 21x. The Motley Fool called FDS a "real-world winner" due in part to its lack of long-term debt. Shares are up 39.6% in the past six months and hit a 52-week high of $62.80 last week.
Bed Bath & Beyond Inc. (NASDAQ: BBBY), General Mills Inc. (NYSE: GIS), and McCormick & Co. Inc. (NYSE: MKC) are also expected to report some earnings growth. Still struggling with the economic slump, though, are Rite Aid Corp. (NYSE: RAD), Scholastic Corp. (NASDAQ: SCHL), and Vail Resorts Inc. (NYSE: MTN), which are expected to post losses.
KB Home (NYSE: KBH) is also expected to report a loss for its third quarter, but a narrower one. The Los Angeles-based homebuilder is forecast to report a loss of $0.58 per share and revenue of $457.8 million, compared to a loss of $1.87 and sales of $681.6 million in the same period of last year. Analysts so far expect to see a loss of $2.78 per share for the full year, as well as $1.7 billion is sales (-42.6%). Though KB Home has fallen short of expectations in most recent quarters, the long-term EPS growth forecast is 10.5%, which is better than that of competitors D.R. Horton Inc. (NYSE: DHI) and Lennar Corp. (NYSE: LEN). Short interest has fallen over the summer, and KB Home has reported positive net cash flow from operating activities in recent reports. The consensus recommendation remains to hold KBH, despite recent upgrades. Zacks anticipates a smaller-than-expected loss. Shares have surged 50.7% in the past three months, but are still 15.3% lower than a year ago.
Rival homebuilder Lennar is also expected to post a narrower year-over-year loss, but only 10 cents per share better to $0.46.











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