Though the earnings season is winding down, and the coming week includes the Thanksgiving holiday in the U.S., plenty of reports are still due out. And analysts surveyed by Thomson Reuters don't seem to be expecting too many turkeys among this week's bunch.
Leading U.S. meat processor Tyson Foods Inc. (TSN), which has just named a new chief executive officer and a new chief operating officer, is expected to report fiscal fourth-quarter earnings of $0.26 per share, up from $0.14 in the same period of last year. But revenue is expected to total $6.9 billion, or 4.3% less than a year ago. The full-year forecast is for a profit of $0.25 per share (-16.7) on $26.4 billion (-3.9%) in sales. This dividend payer has offered upside surprises in the past two quarters, topping estimates by 11 cents per share in the third quarter.
The long-term EPS growth forecast is 8.5%, which is about the same as that of competitor Smithfield Foods Inc. (SFD). Tyson's earnings multiple is 13x. The First Call consensus recommendation has been to buy TSN for more than 90 days. The mean price target is $13.83. JPMorgan, though, downgraded Tyson due to rising commodities prices and other reasons, but BloggingStocks contributor Joseph Lazzaro likes it for its diversity and global reach. Shares have faced resistance around $13 since early September and closed the week at $13.07.
In its fiscal fourth quarter, Hormel Foods Corp. (HRL) boosted its guidance, redesigned the website for its Natural Choice products, and declared a quarterly dividend. The consensus forecast is for earnings of $0.68 per share on revenue of $1.8 billion. That compares with $0.50 per share on $1.9 billion in the year-ago period. The forecast for the full year is for earnings of $2.44 per share (+14.8%) on $6.7 billion (-1.4%) in revenue. Hormel has topped the Street view on earnings in the past four quarters, by as much as nine cents per share.
The long-term EPS growth forecast is 10.0%, which is better than that of ConAgra Foods Inc. (CAG) and Kraft Foods Inc. (KFT). Hormel's earnings multiple is 15x, and its net cash flow from operations has grown in recent quarters. But the consensus recommendation shifted from buying to holding HRL in the past quarter. Shares have risen 16.2% in the past six months and are trading near the 52-week high of $39.04.
American Italian Pasta Co. (AIPC) and Campbell Soup Co. (CPB) are also expected to post earnings growth this week, while H.J. Heinz Co. (HNZ) is expected to report a modest earnings decline.
Analysts expect to see modest EPS growth from Hewlett-Packard Co. (HPQ). The Palo Alto, Calif.-based computer and software maker launched a premium line of notebooks, revealed its new multitouch PCs, and named Marc Andreessen to its board in its fiscal fourth quarter. The consensus forecast is for a profit of $1.13 per share, up 8.9% from the same period a year ago. But sales for the period that ended in October are expected to be 9.7% lower to $30.4 billion. The forecast for the full year is for a profit of $3.82 per share (+5.2%) on $113.9 billion (-3.8%) in revenue. HP has met or beat earnings expectations by a penny or two per share in the past five quarters.
The long-term EPS growth forecast is 10.7%, which is better than that of rival IBM (IBM). This dividend payer's earnings multiple is 11x, and the consensus recommendation is to buy HPQ, with mean price target is $56.11. Zacks is impressed with HP's growth prospects. Shares have risen 13.8% in the past three months and last week reached a 52-week high of $51.43.
Distributor Tech Data Corp. (TECD) is also expected report higher earnings as well, but analysts foresee a decline in earnings of about 50% from Analog Devices Inc. (ADI).
In its third quarter, discount retailer Dollar Tree Inc. (DLTR) reported record second-quarter results, considered governance changes, and appointed new corporate counsel. Analysts are looking for Dollar Tree to report that its profit grew 28.8% from a year ago to $0.66 per share. Sales for the period that ended in October are expected to come to $1.2 billion, up 11.5% from a year ago. The forecast is for sequential and year-over-year growth in the fourth quarter for both EPS and revenue. Dollar Tree has topped earnings expectations in the past five quarters, by as much as nine cents per share, and the long-term EPS growth forecast is 14.9%, which is better than that of competitor Family Dollar Stores Inc. (FDO).
Dollar Tree's earnings multiple is 14x, and the consensus recommendation is to buy DLTR. Analysts have a mean price target of $57.53 on the stock. TheStreet.com called it a bargain stock on the rise. Shares closed at $48.93 Friday; they have faced resistance around $50 in the past three months.
This week, analysts expect to see earnings growth as well from retailers DSW Inc. (DSW) and J. Crew Group Inc. (JCG), but earnings declines from American Eagle Outfitters Inc. (AEO) and Tiffany & Co. (TIF).
The three months that ended in October saw Cracker Barrel Old Country Store Inc. (CBRL) celebrate its 40th anniversary and declare a quarterly dividend. Analysts are looking for this Tennessee-based purveyor of comfort food and kitsch to report fiscal first-quarter earnings of $0.62 per share, up from $0.57 per share in the same period of last year. Revenue for the quarter is expected to total $576.1 million, marginally higher than a year ago. And the forecast is for sequential and year-over-year growth of both EPS and revenue in the second quarter. Cracker Barrel's earnings have beat consensus estimates in the past four quarters, by as much as seven cents per share.
The long-term EPS growth forecast is 10.1%, which is better than the retail industry average but about the same as DineEquity Inc. (DIN), operator of the IHOP chain. Cracker Barrel's earnings multiple is 11x, and lenders just extended a credit agreement with the company. The First Call consensus recommendation is to buy CBRL, with a mean price target of $42.00. Shares have retreated from a 52-week high of $36.90 back in October, and closed Friday at $34.73.
Others expected to post higher earnings this week include Eaton Vance Corp. (EV), Medtronic Inc. (MDT) and Valspar Corp. (VAL).
Bank of Montreal (BMO), BJ Services Co. (BJS) and Deere & Co. (DE) are expected to post lower earnings, while Borders Group Inc. (BGP) is expected to have narrowed its loss in the third quarter. But Frontline Ltd. (FRO), LDK Solar Co. Ltd. (LDK) and TiVo Inc. (TIVO) are expected to have swung to year-over-year losses. Can't get through the week without a little bit of turkey.
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