Earnings season continues to deluge Wall Street with more quarterly reports and retailers are primed to snap up the limelight this week. As Consumer spending accounts for more than two-thirds of all economic activity in the U.S., signs of stronger consumer spending or optimistic forecasts from retailers perk up hope that the recession is retreating.
August 10
Electric utility Dynegy Inc. (DYN) will be on headlines before the market opens Monday for its second-quarter results, as analysts are expecting a loss of $0.04 per share on revenues of $612.09 million. While reporting first-quarter results, the company revised its 2009 forecast, primarily to reflect lower commodity and capacity prices, accelerated timing of a Moss Landing plant outage from 2010 to 2009 and basis differentials, partially offset by the expansion of heat rates. Currently, Dynegy projects 2009 net loss to range between $520 million and $480 million, compared with previously communicated guidance range of loss $65 million - $140 million.
Engineering and construction company Fluor Corp. (FLR) is slated to release second-quarter upshot after the market closes Monday, with analysts forecasting earnings of $0.91 per share on revenues of $5.81 billion.
Food distributor SYSCO Corp. (SYY) will parcel out its final quarter results Monday, as analysts expect the company to post earnings of $0.49 per share on revenues of $9.20 billion. For fiscal 2009, the company projects capital expenditures to be in the range of $500 million - $550 million.
Allied Capital Corp. (ALD), Capstone Turbine Corp. (CPST), Boots and Coots International Well Control Inc. (WEL), Dish Network Corp. (DISH), Holly (HOC), Northgate Minerals Corp. (NXG), Nuance Communications Inc. (NUAN), Priceline.com (PCLN), Quest Software Inc. (QSFT), Quicksilver Resources (KWK) are among others to roll out quarterly results on Monday.
August 11
The world's biggest semiconductor equipment maker Applied Materials (AMAT) will dole out third-quarter report card on Tuesday, with analysts expecting a loss of $0.08 per share on revenues of $955.16 million.
Semiconductor equipment makers have slipped into red amid a difficult semiconductor industry environment. During the recession, demand for manufactured electronic items continues to fall off, coercing chipmakers to muddle through sinking sales. Worldwide sales of semiconductors slid 20% to $51.7 billion in the second quarter, according to the Semiconductor Industry Association. Worldwide sales in June were $17.2 billion, down 20% from prior year's $21.6 billion. However, on a quarter-on-quarter basis, worldwide sales were up 17%.
Wireless broadband networks service provider Clearwire Corp. (CLWR) will share the spotlight on Tuesday, as analysts expect the company to report a loss of $0.39 per share on revenues of $65.24 million for the second quarter. The results are due to be released at 4:00 pm ET.
Tuesday's earnings queue includes Banco Itau Holding Financeira S.A. (ITUB), Broadridge Financial Solutions Inc. (BR), Cree Inc. (CREE), Dendreon (DNDN), Mobile Telesystems (MBT), Rentech Inc. (RTK), Tw Telecom Inc. (TWTC).
August 12
Harris Corp. (HRS) will check in from the IT sector at 4:00 pm ET to issue forth its fourth-quarter numbers, with analysts having a consensus earnings estimate of $0.82 per share on revenues of $1.21 billion. While announcing third-quarter results, the company reduced its fiscal 2009 guidance for non-GAAP earnings from continuing operations to a range of $3.77 - $3.79 per share and GAAP earnings to a range of $2.07 - $2.29 per share. Earlier, the company expected non-GAAP earnings of $3.93 - $4.03 per share and GAAP earnings of $3.88 - $3.98 per share. However, Harris continues to expect a 7% growth in revenue from continuing operations for fiscal 2009 over the previous year.
Department stores operator Macy's Inc. (M) is likely to display second-quarter score card Wednesday, with analysts forecasting earnings of $0.12 per share on revenues of $5.20 billion. While releasing first-quarter figures, the company said that it entered the second quarter with a new organization in place and expects to benefit from nearly $400 million of annual expense savings beginning in 2010, and $250 million in the partial year of 2009. The company anticipates an improvement in sales trend from My Macy's beginning in the fourth quarter of 2009 and especially in spring 2010. For fiscal year 2009, Macy's continues to expect ongoing earnings within a range of $0.40 - $0.55 per share, excluding division consolidation costs. The company continues to expect yearly net sales to decline 6% - 8%.
Processed and packaged foods company Sara Lee (SLE) will mete out final-quarter numbers, with analysts projecting earnings of $0.24 per share on revenues of $3.27 billion. On May 7, Sara Lee revised its fiscal 2009 earnings forecast, currently expecting full year earnings between $0.73 and $0.79 per share, compared to previous outlook of $0.72 - $0.79 per share. The company now expects full-year adjusted earnings to be in the range of $0.75 - $0.81 per share, versus the prior forecast of $0.73 - $0.80 per share. Meanwhile, Sara Lee maintained its fiscal 2009 net sales outlook of $12.8 billion - $13 billion.
From the home building sector, which has been facing challenges characterized by worsening trend in foreclosures, high inventory levels of both new and existing homes, growing job losses, tight credit for homebuyers, rise in delinquencies and a hobbled economy, Toll Brothers Inc. (TOL) is expected to incur a loss of $0.32 per share on revenues of $377.06 million for the third quarter, according to the Street analysts. The results are due to be announced before the market opens Wednesday.
Toll Brothers currently estimates to deliver between 2,200 and 2,800 homes in fiscal 2009. The company also projects an average delivered price of between $590 thousand and $620 thousand per home.
Other companies reporting Wednesday include Advance Auto Parts (AAP), BHP Billiton Plc (BHP), Cameco (CCJ), JA Solar Holdings Co. Ltd. (JASO), Kinross Gold (KGC), LDK Solar Co. Ltd. (LDK), NetEase.com Inc. (NTES), Penn West Energy Trust (PWE).
August 13
Retail giant Wal-Mart Stores Inc. (WMT), a Dow component, is set to publish second-quarter score card at 07:00 am ET on Thursday. Wall Street analysts have a consensus revenue estimate of $0.86 per share on revenues of $103.12 billion for the quarter. Wal-Mart, considered a bellwether for the industry, expects second-quarter earnings from continuing operations to range between $0.83 and $0.88 per share.
Design software maker Autodesk Inc. (ADSK) will layout second-quarter results Thursday, with analysts projecting earnings of $0.19 per share on revenues of $413.17 million. In mid-May, the company said it expects second-quarter GAAP loss to range between $0.03 and $0.09 per share and non-GAAP earnings in the range of $0.15 - $0.20 per share, with revenue of $395 million - $420 million.
Educational services provider DeVry (DV) is set to give out fourth-quarter progress card on Thursday, as analysts are expecting earnings of $0.51 per share on revenues of $376.92 million.
Non-alcoholic beverages maker Dr Pepper Snapple Group Inc. (DPS) will furnish second-quarter numbers before the market opens Thursday, with analysts forecasting earnings of $0.49 per share on revenues of $1.50 billion. While releasing first-quarter results, the company said it currently expects fiscal 2009 earnings to range between $1.85 and $1.93 per share, up from the prior guidance range of $1.71 - $1.79 per share. Dr Pepper Snapple also raised its adjusted earnings forecast to a range of $1.70 - $1.78 per share from its prior estimate of $1.59 - $1.67 per share. Analysts expect the company to report earnings of $1.77 per share for fiscal 2009.
Further, Dr Pepper Snapple continues to anticipate full-year net sales to be down 2% to 4%. Excluding the loss of Hansen product distribution and currency fluctuations, the company expects net sales to grow 2% to 4%.
Department store operator Kohls Corp. (KSS) will annunciate second-quarter figures Thursday, with analysts projecting earnings of $0.73 per share on revenues of $3.78 billion. The company, in mid-May, said it projects second-quarter earnings between $0.56 and $0.64 per share. For fiscal 2009, Kohl's updated its earnings per share outlook range to $2.19 - $2.42 from prior range of $2.00 - $2.30 per share. Analysts are looking for earnings of $2.66 per share for the full year.
Fashion specialty retailer Nordstrom (JWN) will publicize second-quarter score card after the market closes Thursday, as analysts are expecting earnings of $0.45 per share on revenues of $2.13 billion. On May 14, Nordstrom raised its fiscal 2009 earnings outlook to a range of $1.25 - $1.50 from its previous estimate of $1.10 - $1.40 per share. Analysts are looking for earnings of $1.38 per share for the full year.
Personal care products maker Estée Lauder Companies Inc. (EL) is set to report fourth-quarter results Thursday before the market opens, with analysts forecasting earnings of $0.20 per share on revenues of $1.72 billion.
While releasing third-quarter numbers, Estée Lauder said it currently expects fiscal 2009 earnings, before restructuring and other special charges, to range between $1.32 and $1.44 per share, including the expected negative impact of foreign currency translation of about $0.21 - $0.23 per share. Net sales are expected to drop 1% - 3% in constant currency. Previously, Estée Lauder projected earnings in the range of $1.30 - $1.60 per share, including the anticipated negative impact of foreign currency translation of about $0.25 - $0.27 per share., while sales were expected to be flat to down 3% in constant currency.
For the lifestyle specialty retailer Urban Outfitters Inc. (URBN), analysts are looking for earnings of $0.26 per share on revenues of $457.15 million for the second quarter. The results are due to be released on Thursday. On August 6, the company reported 1% rise in second-quarter net sales that totaled $458.6 million, compared to $454.3 million reported a year ago.
Other prime players to tag along with the retail giants in releasing quarterly results on Thursday include AmBev - Companhia de Bebidas Das Americas (ABV), Blockbuster Inc. (BBI), Gildan Activewear (GIL), Insmed Inc. (INSM), URS Corp. (URS).
August 14
Teen apparel retailer Abercrombie & Fitch Co. (ANF) will publicize second-quarter numbers before the market opens Friday, with analysts expecting a loss of $0.06 per share. Net sales for the quarter dropped 23% to $648.5 million, topping analysts' consensus revenue estimate of $648.05 million.
Department store chain J.C. Penney Co. Inc. (JCP) will issue dollars-and-cents trivia for the second quarter, as analysts are expecting a loss of $0.03 per share on revenues of $3.95 billion for the quarter. Most recently, the company said it currently projects a second-quarter loss of about $0.01 per share, versus the prior outlook range of loss $0.08 - $0.12 per share. The company noted that the outlook revision was based on better than expected sales in July and continued improvement in gross margin and operating expenses.
Stay tuned to RTTNews to watch investors gauging the direction of the market in the week that lies ahead.
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