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Earnings Season In Full Swing

earnings 110209

Wall Street is into the third week of the earnings season with two-thirds of the S&P 500 companies having reported thus far. About 80% of the companies outperformed analysts' expectations, 6% inline and 13% missed Thomson Reuters estimates. The pattern in a typical quarter is 61% beat, 18% match and 21% miss. The beat continues relentlessly, and a barrage of quarterly reports, mainly from energy and utility companies, will be in focus this week. The list includes...

November 2

Independent exploration and production company Anadarko Petroleum Corp. (APC) will issue its third-quarter results after the market closes Monday. Analysts are expecting a loss of $0.33 per share on revenues of $2.00 billion for the quarter. In the prior-year quarter, the company posted earnings from continuing operations of $4.62 per share on revenues of $6.15 billion. Anadarko Petroleum currently expects full year 2009 sales volumes to be 210 million - 215 million barrels of oil equivalent, compared to its prior guidance of 208 million - 212 million barrels of oil equivalent.

Oil and natural gas exploration and production company Chesapeake Energy Corp. (CHK) is set to release its third-quarter results after the market closes on November 2, with analysts forecasting earnings of $0.65 per share, on revenues of $1.96 billion. This compares with the previous year's adjusted earnings of $0.85 per share and revenues of $7.49 billion. Most recently, the company raised its production outlook for fiscal 2009 and fiscal 2010, currently expecting 2009 production to grow by 5% - 6%, versus its prior estimate of 4% - 5% growth. The Oklahoma City-based company now expects to produce 815 - 825 bcf of natural gas, up from its previous expectation of 805 - 815 bcf.

For fiscal 2010, Chesapeake currently expects production growth in the range of 8% - 10%, up from its previous expectation of 7% - 8%. The company now expects to produce 862 - 902 bcf of natural gas, compared to prior estimate of 865 - 885 bcf. For fiscal 2011, Chesapeake anticipates production growth of 12% - 14%, and natural gas production of 1,007 - 1,027 bcf.

Consumer products maker Clorox Corp. (CLX) is scheduled to report its first-quarter results Monday, as analysts are looking for earnings of $0.95 per share on revenues of $1.37 billion, higher than the prior-year's earnings of $0.76 per share and sales of $1.24 billion. While releasing its fourth-quarter numbers, the company reiterated its fiscal 2010 outlook for earnings in a range of $4.00-$4.15 per share, on sales growth of 1% - 2%. Clorox also reaffirmed its outlook for full-year gross margin expansion in a range of 50-100 basis points.

Food and beverage company Dean Foods Co. (DF) will publish financial results for its third quarter before the market opens On November 2, with analysts projecting earnings of $0.33 per share on revenues of $2.94 billion. The company expects third-quarter adjusted earnings to be at least $0.30 per share. In the prior-year quarter, Dean Foods posted adjusted earnings of $0.28 per share and net sales of $3.2 billion. For the full year 2009, Dean Foods currently projects adjusted earnings outlook to be at least $1.60 per share, versus its prior estimation of $1.55 per share. Analysts expect the company to report earnings of $1.66 per share for fiscal 2009.

Private Medicare plans provider Humana Inc. (HUM) expects to post third-quarter earnings in the range of $1.75 - $1.80 per share. This compares with the $1.77 per share earnings consensus estimate of twenty one Wall Street analysts. The results are slated to be released at 06:00 am ET, with analysts expecting revenue of $7.82 billion for the quarter.

For fiscal 2009, Humana continues to expect earnings per share in the range of $6.10 - $6.20, that excludes any potential accounting charges and other costs associated with the military contract loss. The 2009 projection compares to earnings per share of $3.83 for fiscal 2008. Analysts expect the company to report earnings of $6.14 per share for fiscal 2009.

Diversified conglomerate Loews Corp. (L) will issue its third-quarter scorecard before the market opens Monday, with analysts expecting earnings of $0.89 per share. This compares with the year-ago quarter's loss from continuing operations of $0.33 per share.

Republic Services Inc. (RSG), a non-hazardous solid waste collection and disposal services provider, is slated to announce its third-quarter results after the market closes Monday, as analysts are looking for earnings of $0.36 per share on revenues of $2.07 billion. In the year-earlier period, the company reported earnings of $0.48 per share and revenue of $834.0 million. Republic Services, in July, boosted its 2009 earnings forecast, excluding the anticipated $0.20 per share charges related restructuring and costs to achieve synergies, to a range of $1.43 - $1.45 per share, from the prior estimate of $1.30 - $1.35 per share. Analysts expect earnings of $1.46 per share for the full year. Full year revenues are expected to decline in a range of 11% - 11.8% from the previous year.

Monday's earnings calendar includes quarterly reports from Cameco (CCJ), Cooper Tire & Rubber (CTB), Forest Oil Corp. (FST), Kinross Gold (KGC) and more...

November 3

For a quarter that saw the packaged foods and beverages company Kraft Foods Inc. (KFT) mulling over a bid for Cadbury, analysts are forecasting earnings of $0.48 per share on revenues of $10.32 billion. The third-quarter results are due to be released at 4:00 pm ET Tuesday. For the third-quarter of fiscal 2008, the company reported adjusted earnings of $0.44 per share on net revenue of $10.5 billion. The foodmaker, in August, raised its fiscal 2009 earnings outlook to $1.93 per share from its prior expectation of $1.88 per share. The company continues to expect 2009 organic net revenue growth of about 3%.

AmerisourceBergen Corp. (ABC) is due to release its financial results for the fourth quarter before the market opens on November 3, with analysts forecasting earnings of $0.40 per share on revenues of $18.06 billion. The company expects to achieve the higher end of the $0.34 - $0.40 per share range guidance for the fourth quarter. In the prior-year period, the company posted earnings from continuing operations of $0.73 per share and revenue of $17.2 billion. For fiscal 2009, AmerisourceBergen currently expects earnings from continuing operations to be at the higher end of its previously estimated range of $1.59 - $1.65 per share, and revenue growth of between 1% and 3%.

Agricultural commodities and products processor Archer Daniels Midland Co. (ADM) is set to release its first-quarter results before the market opens Tuesday, with analysts expecting earnings of $0.56 per share on revenues of $17.22 billion. In the year-ago quarter, the company reported earnings of $1.63 per share and net sales of $21.2 billion. CEO Patricia Woertz said, "As we look ahead, we see signs of improving demand in the various food, feed and fuel markets we serve. We remain financially strong and well positioned to capture value as global markets recover."

Oilfield equipment and services provider Cameron International Corp. (CAM) projects third-quarter earnings to range between $0.50 and $0.55 per share, as analysts are expecting earnings of $0.53 per share on revenues of $1.28 billion for the quarter. The results are scheduled to be released on November 3. In the year-ago quarter, the company posted earnings of $0.73 per share and revenues of $1.50 billion. For the full year 2009, Cameron currently expects earnings in the range of $2.15 - $2.25 per share, versus its prior outlook range of $1.85 - $2.00 per share.

Cognizant Technology Solutions Corp. (CTSH) will check in from the IT sector before the market opens Tuesday to issue forth its third-quarter report card. Wall Street analysts have a consensus earnings estimate of $0.41 per share, on revenues of $805.10 million for the quarter. The company projects third-quarter GAAP earnings to be $0.40 per share, on revenues of at least $800 million. On a non-GAAP basis, earnings are anticipated at $0.44 per share, which excludes $0.04 of estimated stock-based compensation expense. In the prior-year period, the company reported non-GAAP earnings of $0.40 per share and revenue of $734.7 million.

For the fiscal year 2009, Cognizant now expects earnings per share to be at least $1.66 on revenue of at least $3.14 billion. Excluding $0.14 of estimated stock-based compensation and stock-based Indian fringe benefit tax expense, earnings is expected to be at least $1.80 per share. Earlier, the company had projected 2009 earnings per share to be at least $1.53, revenue to be at least $3.1 billion, and non-GAAP earnings of at least $1.71 per share.

Diversified global technology company Emerson Electric Co. (EMR), which recently acquired Avocent Corp. (AVCT) for $25 per share, or about $1.2 billion in cash, will release its final quarter results before the market opens Tuesday. Analysts are looking for earnings of $0.60 per share on revenues of $5.30 billion. In the prior-year quarter, Emerson posted earnings of $0.88 per share and sales of $6.7 billion. In early August, the company lowered its fiscal 2009 earnings forecast to $2.20 - $2.30 per share from the prior guidance of $2.40 - $2.60 per share. Sales for the year are now expected to be between $20.8 billion and $21.1 billion, down from the prior outlook of between $21.0 billion and $21.7 billion.

Telecom services provider Frontier Communications Corp. (FTR) is slated to report its third-quarter results before the market opens on November 3, with analysts forecasting earnings of $0.15 per share on revenues of $530.35 million. In the prior-year period, the company reported earnings of $0.15 per share and revenue of $557.9 million.

Integrated oil and natural gas company Marathon Oil Corp. (MRO) will publish its third-quarter results on November 3. Analysts are projecting earnings of $0.57 per share on revenues of $13.70 billion. For the third-quarter of fiscal 2008, the company reported adjusted earnings of $2.76 per share on revenue of $23.4 billion. Most recently, Marathon Oil said it estimates its third-quarter refined products sales volumes to average about 1.40 million bpd, compared to 1.36 million bpd in the year-ago quarter. Exploration expense for the third quarter is anticipated to be at or below $80 million, which is at the low end of previous outlook. Further, Marathon said it expects liquid hydrocarbon and natural gas production available for sale to be about 395,000 barrels of oil equivalent per day or boepd, within the previous guidance of 380,000 - 400,000 boepd.

MasterCard Inc. (MA), a transaction processing and related services provider, is scheduled to release its third-quarter results before the market opens Tuesday, with analysts projecting earnings of $2.94 per share on revenues of $1.35 billion. In the year-earlier period, the company reported earnings before items of $2.47 per share and revenue of $1.3 billion.

Medco Health Solutions Inc. (MHS), a provider of pharmaceutical healthcare services, will issue financial results for its third-quarter before the market opens Tuesday, as Analysts are looking for earnings of $0.72 per share on revenues of $14.68 billion. In the year-ago quarter, the company reported non-GAAP earnings of $0.63 per share on net revenues of $12.6 billion.

While releasing second-quarter figures, Medco raised its 2009 earnings guidance, driven by strong performance through the second quarter and a clearer line of sight for the full year, to $2.54 - $2.59 per share, from its prior outlook range of $2.45 - $2.55. Medco now expects non-GAAP earnings per share of $2.76 to $2.81, versus its previous guidance of $2.67 - $2.77 per share. Analysts are expecting earnings of $2.80 per share for the full year.

Mail processing equipment and integrated mail solutions provider Pitney Bowes Inc. (PBI) is slated to announce its third-quarter results on November 3, with analysts expecting earnings of $0.54 per share on revenues of $1.41 billion. The company reported adjusted earnings of $0.67 per share on revenue of $1.5 billion for the third quarter of fiscal 2008. In late July, the company slashed its fiscal 2009 earnings from continuing operations forecast to a range of $2.09 - $2.29 per share, from the previously communicated outlook range of $2.34 - $2.54 per share. Pitney Bowes now foresees 2009 adjusted earnings per share from continuing operations in the range of $2.15 - $2.35, versus prior outlook of $2.40 - $2.60 per share. Full year revenues are now estimated to decline in the range of 4% - 7% on a constant currency basis.

Apparel maker Polo Ralph Lauren Corp. (RL) is set to report its second-quarter results at 8:00 am ET on November 3, with analysts expecting earnings of $1.31 per share on revenues of $1.31 billion. While reporting first-quarter results, the company expects second-quarter wholesale revenues and comparable store sales to decline by a low double digit rate, including a net unfavorable foreign currency translation effect. In the prior-year period, the company posted earnings of $1.58 per share and revenue of $1.43 billion. Fiscal 2010 net revenues are still expected to decline by a high single digit rate. The full year tax rate is estimated at 35%.

According to the Street analysts, communications and aviation electronics provider Rockwell Collins Inc. (COL) is expected to report fourth-quarter earnings of $0.87 per share on revenues of $1.22 billion at 7:30 am ET on November 3. In the prior-year quarter, the company reported earnings of $1.13 per share on revenues of $1.28 billion. Rockwell currently expects fiscal year 2009 earnings to range between $3.70 and $3.75 per share, narrower than the prior guidance range of $3.70 - $3.90 per share. However, the company backed its revenue outlook for 2009 of about $4.5 billion. Analysts expect earnings of $3.76 per share on revenues of $4.50 billion for the full year.

Looking further ahead to fiscal 2010, Rockwell Collins projects earnings in a range of $3.35 - $3.55 per share, on revenues between $4.6 billion and $4.8 billion. Excluding items, the company anticipates full year 2010 earnings to be between $3.80 and $4.00 per share.

Companies that are lined up to release quarterly results on Tuesday includes Rowan Companies Inc. (RDC), IntercontinentalExchange Inc. (ICE), Acorda Therapeutics (ACOR), Cablevision Systems Corp. (CVC), Louisiana-Pacific Corp. (LPX), Marvel Entertainment Inc. (MVL), Myriad Genetics (MYGN), Oshkosh Corp. (OSK), Perot Systems (PER), PetroQuest Energy (PQ), Quest Software Inc. (QSFT), Royal Caribbean Cruises Ltd. (RCL), Teva Pharmaceutical (TEVA), UBS (UBS), Yamana Gold Inc. (AUY).

November 4

For the world's largest computer networking gear maker Cisco Systems Inc. (CSCO) analysts are forecasting earnings of $0.31 per share on revenues of $8.74 billion for the first quarter. The results are due to be released after the market closes Wednesday. In the previous year, the company reported non-GAAP earnings of $0.42 per share on net sales of $10.3 billion.

Automatic Data Processing Inc. (ADP), a provider of technology-based outsourcing solutions, will issue financial results for its first quarter before the market opens Wednesday, with analysts forecasting earnings of $0.50 per share on revenues of $2.05 billion. In the prior-year quarter, the company posted earnings from continuing operations of $0.54 per share on revenues of $2.18 billion.

For fiscal 2010, Automatic Data expects the severely negative economic conditions to continue. Automatic Data Processing sees comparatively worsening business metrics in the first half of fiscal 2010, with particularly tough year-over-year comparison for the first quarter. Full-year net earnings from continuing operations, excluding favorable tax settlements, are expected to be $2.29 - $2.39 per share, while analysts expect $2.35 a share. Total revenues are projected to decline 1% - 4% year-over-year. Analysts estimate full-year revenues to be $8.73 billion.

For a quarter that saw the oil field services company Baker Hughes Inc. (BHI) acquiring BJ Services Co. (BJS) for $5.5 billion, Analysts are expecting earnings of $0.36 per share on revenues of $2.26 billion for the third quarter. The results are due to be announced before the market opens on November 4.

Medical technology company Becton, Dickinson and Co. (BDX) will announce fourth-quarter results before the market opens Wednesday. Analysts polled by Thomson Reuters expect the company to report earnings of $1.24 per share on revenues of $1.85 billion. Analysts' estimates typically exclude special items. In the year-ago period, the company posted earnings from continuing operations of $1.13 per share on revenues of $1.84 billion.

While releasing third-quarter results, Becton, Dickinson revised its fiscal 2009 forecast expecting earnings from continuing operations to range between $4.89 and $4.93 per share. Excluding specified items, the company now projects earnings from continuing operations for the year to be about $4.92 - $4.96 per share. GAAP earnings are estimated to be in the range of $4.93 - $4.97 per share. Analysts are looking for earnings of $4.96 per share on revenues of $7.13 billion for the full year.

Investors will hear third-quarter earnings from the cable services provider Comcast Corp. (CMCSA) before the market opens Wednesday, as analysts are forecasting earnings of $0.25 per share on revenues of $8.85 billion. This compares to the previous year's adjusted earnings of $0.24 per share and revenue of $8.55 billion.

Life insurance company Prudential Financial Inc. (PRU) is set to release its third-quarter results after the market closes Wednesday, with analysts forecasting earnings of $1.33 per share on revenues of $6.65 billion. For 2009, the company currently expects earnings in the range of $5.00 - $5.20 per share, from the prior range of $4.80 - $5.20 per share. Analysts currently expect earnings of $5.47 per share for fiscal 2009.

Media and entertainment giant Time Warner Inc. (TWX) will publicize its third-quarter results before the market opens Wednesday, with analysts expecting earnings of $0.53 per share on revenues of $7.08 billion. In the year-ago quarter, the company posted earnings of $0.30 per share and revenues of $11.7 billion. Time Warner, in July, said it continues to expect its 2009 full-year adjusted earnings per share from continuing operations to be around flat compared to adjusted earnings of $1.98 per share in 2008. GAAP loss from continuing operations for fiscal 2009 is expected to be $5.40 per share. Analysts expect earnings of $2.03 per share for the full year.

The lineup of companies to issue forth financial results Wednesday include Pulte Homes Inc. (PHM), RR Donnelley (RRD), Devon Energy Corp. (DVN), El Paso Corp. (EP), Molson Coors Brewing Co. (TAP), Agrium Inc. (AGU), Foster Wheeler AG (FWLT), Garmin Ltd. (GRMN), Goldcorp (GG), Goodrich Petroleum (GDP), Huntsman Corp. (HUN), IAMGOLD Corp. (IAG), Murphy Oil Corp. (MUR), News Corp. (NWS), StatoilHydro ASA (STO), Allstate Corp. (ALL), THQ Inc. (THQI), Total (TOT), Transocean Ltd. (RIG), Tyco Electronics (TEL).

November 5

Health care products and services company Cardinal Health Inc. (CAH) is slated to issue its first-quarter results before the market opens Thursday, with analysts projecting earnings of $0.43 per share on revenues of $24.04 billion. For fiscal 2010, the company raised its forecast for non-GAAP earnings from continuing operations to a range of $1.90 - $2.00 per share for 'new' Cardinal Health, from its prior outlook range of $1.87 - $1.91 per share. Revenue growth for 2010 is estimated to be in low single-digit.

Healthcare benefits provider CIGNA Corp. (CI) will announces its third-quarter results before the market opens Thursday, as analysts are looking for earnings of $1.03 per share on revenues of $4.60 billion. In the year-earlier period, the company earned $0.62 per share on revenue of $4.85 billion.

While releasing second-quarter figures, Cigna boosted its fiscal 2009, currently expecting adjusted income from operations in the range of $1.04 billion - $1.10 billion, or $3.80 - $4.00 per share, versus its prior forecast range of $1.02 billion - $1.08 billion, or about $3.70 - $3.90 per share. Also, the company currently projects 2009 adjusted income from operations for the Health Care segment to be in the range of $700 million - $760 million. For the year, medical membership is expected to decline by about 5% - 5.5%.

Drugstore operator and pharmacy benefits manager CVS Caremark Corp. (CVS) will publish third-quarter financial results on November 5, as analysts are expecting earnings of $0.64 per share on revenues of $24.53 billion. Earlier in August, the company raised its fiscal 2009 earnings forecast and narrowed the range to $2.41 - $2.46 per share from continuing operations on a GAAP basis, from its prior outlook range of $2.37 - $2.45. Adjusted earnings per share from continuing operations are now projected to range between $2.59 and $2.64 for the full year, up from its previous guidance of $2.55 - $2.63 per share.

Non-alcoholic beverages maker Dr Pepper Snapple Group Inc. (DPS) is scheduled to release financial results for its third quarter before the market opens Thursday, with analysts expecting earnings of $0.49 per share on revenues of $1.44 billion. For the third quarter of fiscal 2008, the company reported earnings before items of $0.45 per share. In mid August, the company raised its full year earnings forecast to $2.03 - $2.11 per share, from its prior outlook range of $1.85 - $1.93 per share. The company also lifted its adjusted earnings forecast to a range of $1.88 - $1.96 per share from its previous estimate of between $1.70 and $1.78 per share. Further, the company continues to anticipate full year net sales to be down 2% - 4%. Excluding the loss of Hansen product distribution and currency fluctuations, net sales are still expected to grow 2% - 4%.

Electric utility company Dynegy Inc. (DYN) will issue third-quarter results before the market opens Thursday, with analysts forecasting earnings of $0.03 per share on revenues of $877.54 million. In the year-ago quarter, the company posted earnings of $0.72 per share and revenue of $1.89 billion. Dynegy said, on August 10, it currently sees fiscal 2009 net loss between $975 million and $935 million, versus its prior forecast range of net loss $520 million and $480 million.

Processed and packaged foods company Sara Lee Corp. (SLE) is slated to announce its first-quarter results before the market opens Thursday. Analysts polled by Thomson Reuters expected the company to post earnings of $0.18 per share on revenues of $3.16 billion for the quarter. Analysts' estimates typically exclude special items. In the prior-year period, the company posted earnings of $0.32 per share and net sales of $3.35 billion. For fiscal 2010, the company expects earnings from continuing operations to be in a range of $1.03 - $1.09 per share, with net sales in the range of $12.9 billion - $13.2 billion. Adjusted earnings are estimated to range between $0.84 and $0.90 per share. Analysts expect earnings of $0.90 per share on revenues of $13.15 billion for the full year.

Moreover, Sara Lee expects five out of six business segments to show an increase in adjusted operating segment income in fiscal 2010. The only exception to this is North American food service due to the continuing industry-wide pressure affecting most foodservice manufacturers and operators.

From the specialty coffee retailer Starbucks Corp. (SBUX), analysts are expecting earnings of $0.21 per share on revenues of $2.39 billion for the fourth quarter. The results are due to be released after the market closes on November 5. In the year-ago quarter, the company reported earnings of $0.01 per share and revenues of $2.52 billion. For fiscal 2010, Starbucks currently expects adjusted earnings growth in the range of 13% - 18%, excluding $0.02 - $0.03 of expected restructuring charges in the first half of fiscal year 2010, and including nearly $0.02 per share of additional earnings from the extra week in the fiscal fourth quarter, as fiscal 2010 is a 53-week year for Starbucks.

Kimco Realty Corp. (KIM), MetroPCS Communications Inc. (PCS), Spectra Energy (SE), Sunoco (SUN), DIRECTV Group Inc. (DTV), Nasdaq OMX Group Inc. (NDAQ), Time Warner Cable Inc. (TWC), VeriSign Inc. (VRSN), Deutsche Telekom (DT), MGM Mirage (MGM), Penn West Energy Trust (PWE), Toyota Motor Corp. (TM) and Unilever Plc (UL) are among the major companies to release quarterly results Thursday.

November 6

Integrated energy company Suncor Energy Inc. (SU,SU.TO) is slated to report its third-quarter results on November 6, Friday, with analysts forecasting earnings of $0.30 per share. While releasing second-quarter numbers, the company maintained its fiscal 2009 forecast of oil sands production to be 300,000 bpd, with a growth range of +5% to -10%; and Natural gas production is estimated to be 210 mmcf equivalent per day, with a range of +5% to -5%.

Friday's light earnings schedule includes results from Brookfield Asset Management (BAM), Smith & Nephew (SNN), and PMI Group Inc. (PMI).

Stay tuned to RTTNews for the latest developments.

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