It's been reported that Canadian banks have fared better than their U.S. and European counterparts recently. The Bank of Montreal (BMO) did report strong fourth-quarter results last week. This week, analysts surveyed by Thomson Reuters expect competitor Royal Bank of Canada (RY) to post modest earnings growth as well, while Canadian Imperial Bank of Commerce (CM) and Toronto Dominion Bank (TD) are expected to post earnings declines.
Analysts are looking for $0.98 per share (+6.1%) earnings from RBC, $1.25 per share (-7.4%) from Toronto Dominion and $1.36 per share (-21.8%) from Canadian Imperial. The long-term EPS growth forecast for these three banks is for ranges from 10% and 12%, which is in the same ballpark as U.S. rivals Bank of America Corp. (BAC) and Wells Fargo & Co. (WFC). Earnings multiples for these Canadian banks are 10x to 12x, but only Toronto Dominion has a First Call consensus recommendation of buy. The Motley Fool, though, recently commented on Royal Bank's steady income and reliability. All three banks are trading near their 52-week highs, and shares of all are up well more than 100% since March lows.
Analysts expect to see strong EPS growth from Jo-Anne Stores Inc. (JAS). The Hudson, Ohio-based sewing and craft supply retailer celebrated its 66th anniversary, saw a Moody's upgrade, and appointed a new manager in its fiscal fourth quarter. The consensus forecast is for a profit of $0.89 per share, up from $0.35 in the same period a year ago. Sales for the three months that ended in October are expected to be 6.0% higher to $509.1 million. These results are in line with previously released guidance. The forecast is for sequential and year-over-year growth in EPS and revenue in the fourth quarter. Jo-Anne's earnings results were better than expected in the previous two quarters.
Jo-Anne's long-term EPS growth forecast is 17.5%, which is better than that of competitor Hancock Fabrics Inc. (HKFI). Jo-Anne's earnings multiple is 15x, and the consensus recommendation is to buy JAS, with a mean price target of $37.00. Zacks considers it a powerful buy. Shares have risen 20.7% in the past three months and reached a 52-week high of $34.08 last week.
Specialty retailer Aeropostale Inc. (ARO), which saw record sales and management changes over the summer, is expected to report that third-quarter earnings rose 30.8% from a year ago to $0.91 per share. Revenue is expected to total $565.2 million, or 17.2% higher than a year ago. The full-year forecast is for a profit of $3.19 per share (+30.7%) on $2.2 billion (+16.3%) in sales. This New York-based company has topped estimates by a penny per share in recent quarters.
Aeropostale's long-term EPS growth forecast is 15.1%, which is better than that of competitors Abercrombie & Fitch Co. (ANF) and American Eagle Outfitters Inc. (AEO). Aeropostale's earnings multiple is 9.3x. Analysts, on average, recommend buying ARO and have for more than 90 days. Their mean price target is $44.23. The Motley Fool recently called it a stock ready to run. But shares have slumped 21.8% in the past month, heading south of the 200-day moving average for the first time since March.
In its third quarter, Shanda Interactive Entertainment Ltd. (SNDA) spun off Shanda Games in an IPO and was recognized as one of Fortune 100's fastest growing companies. The consensus forecast is for earnings of $0.88 per share on revenue of $197.7 million. That compares with $0.68 per share on $137.3 million in the year-ago period. The forecast for the full year is for earnings of $3.50 per share (+28.0%) on $753.0 million (+44.2%) in revenue. Shanda has topped the Street view on earnings in the past five quarters, by as much as 13 cents per share.
Shanda's long-term EPS growth forecast is 18.7%, which is better than that of Electronic Arts Inc. (ERTS). Shanda's earnings multiple is 17x, and the consensus recommendation is to buy SNDA. The mean share price target is $57.31. The Motley Fool likes Shanda's revenue growth prospects. Shares have faced resistance around $50, as well as from the 100-day moving average, since August and closed the holiday-shortened week at $49.90.
The three months that ended in October saw Diamond Foods Inc. (DMND) name a new VP, report record 2009 results and declare a quarterly dividend. Analysts expect this San Francisco-based producer of nuts and nut products to report fiscal first-quarter earnings of $0.81 per share, up from $0.67 per share in the same period of last year. Revenue for the quarter is expected to total $194.6 million, down slightly from a year ago. And the forecast is for year-over-year growth of both EPS and revenue in the second quarter. The company's earnings have beat consensus estimates in the past five quarters, by as much as six cents per share.
The long-term EPS growth forecast for Diamond Foods is 15.0%, which is better than the food and beverage industry average. Its earnings multiple is 17x. The consensus recommendation remains to buy DMND, with a mean price target of $35.00. Zacks recently added the stock to its strong buy list. Shares are 21.8% higher than six months ago and closed Friday at $31.25.
Others expected to report earnings growth this week include Big Lots Inc. (BIG), Collective Brands Inc. (PSS), Del Monte Foods Co. (DLM), Marvell Technology Group Ltd. (MRVL), Novell Inc. (NOVL) and Smith & Wesson Holding Corp. (SWHC).
This week's anticipated earnings decliners include Guess? Inc. (GES) and Staples Inc. (SPLS), while Cost Plus World Market Inc. (CPWM) and Toll Brothers Inc. (TOL) are expected to post quarterly losses.
Also this week, look for the Chicago Purchasing Manager Index for November, the ISM Manufacturing Survey for November, the Federal Reserve Beige Book Survey, and employment numbers for November.
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