As Wall Street kicks into gear to roll out fourth-quarter earnings reports, the markets are a tad more optimistic about this quarter marking the beginning of the end of an earnings recession. Although many companies have reported improved results, positive surprises in the recent quarters, the numbers were still below year-ago levels. The fourth-quarter performance reports will determine, if the profit gains were merely because of cost-cutting and stimulus measures, or sustainable revenue growth.
Alcoa Inc. (AA), which kick starts the season after market-close on January 11, has warned about facing low demand, but higher costs for its overseas operations due to a weak dollar. Analysts polled by Thomson Reuters expect the company to report earnings of $0.06 per share on revenues of $4.82 billion for the quarter. Analysts' estimates typically exclude special items. In the year-ago period, the company incurred a loss from continuing operations of $1.16 per share on revenues of $5.7 billion.
Other prime players to tag along with the New York-based aluminium giant in releasing financial results include Helen of Troy (HELE) and WD-40 Company (WDFC).
Linear integrated circuit maker Linear Technology Corp. (LLTC) is set to publish second-quarter results Tuesday, January 12, with analysts forecasting earnings of $0.31 per share on revenues of $246.60 million. The company expects revenue growth for second quarter to be in the range of 2% - 5% over the first quarter.
Grocery stores operator Supervalu Inc. (SVU) is slated to release its third-quarter scorecard Tuesday, as analysts are projecting earnings of $0.40 per share on revenues of $9.43 billion. In the prior-year period, the company posted adjusted earnings of $0.62 per share on net sales of $10.2 billion.
While reporting second-quarter numbers, the Eden Prairie, Minnesota-based Supervalu revised its fiscal 2010 earnings forecast, by cutting the top end of previous range. Supervalu now expects fiscal 2010 GAAP earnings to be in the range of $1.95 - $2.05 per share versus the prior outlook range of $1.95 - $2.15 per share. Non-GAAP earnings are now estimated to range between $2.01 and $2.11 per share, compared to prior guidance range of $2.01 - $2.21 per share, and net sales of about $41 billion, lower than previous forecast of about $42 billion.
Great Atlantic & Pacific Tea Co. Inc. (GAP), an operator of conventional supermarkets, is due to report its third-quarter results Tuesday, January 12. Wall Street analysts are expecting the company to report a loss of $0.72 per share on revenues of $2.07 billion for the quarter. In the year-ago period, the company incurred a loss from continuing operations of $3.0 million on sales of $2.1 billion.
Indian software services company Infosys Technologies Ltd. (INFY) is due to announce third-quarter results Tuesday, as analysts are projecting earnings of $0.51 per share on revenues of $1.17 billion. In October 2009, the company said it expects third-quarter consolidated earnings per ADS to be $0.50, down 13.8% from the prior year. Consolidated revenues are expected to be in the range of $1.155 billion - $1.165 billion. In the previous year's third quarter, Infosys earned $0.58 per ADS on revenues of $1.17 billion.
From the home builder KB Home (KBH), which is scheduled to release its fourth-quarter results Tuesday, analysts are forecasting a loss of $0.42 per share on revenues of $577.83 million.
Adhesives and specialty chemicals maker HB Fuller Co. (FUL) and data storage solutions and storage process technology provider Xyratex Ltd. (XRTX) are also slated to issue financial results Tuesday.
Northwest Pipe Co. (NWPX) is due to report its fourth-quarter numbers Wednesday, January 13, with analysts forecasting a loss of $0.11 per share on revenues of $67.30 million. Recently, the company said it sees mixed signals for the fourth quarter and to next year. Also, Northwest Pipe added that its operations in the fourth quarter would continue to be challenging. In the year-earlier period, the company posted earnings of $0.92 per share on revenues of $110.2 million.
CLARCOR (CLC), Orleans Homebuilders (OHB) and Sealy (ZZ) are also lined up to release quarterly results Wednesday.
From the brokerage and investment manager Charles Schwab Corp. (SCHW) analysts polled by Thomson Reuters are projecting earnings of $0.15 per share on revenues of $993.58 million for the fourth quarter. The results are due to be released Thursday, January 14. In the year-ago period, the company reported earnings of $0.27 per share on net revenues of $1.28 billion.
Origin Agritech Ltd (SEED), a specializer in agri-biotech farming, is set to report its fourth-quarter results Thursday. In mid-August, the company reiterated its fiscal 2009 revenue guidance in the range of RMB 560 million - RMB 580 million.
Chip maker Intel Corp. (INTC) is slated to report fourth-quarter results after the market closes on January 14, with analysts expecting the company to report earnings of $0.30 per share on revenues of $10.16 billion. Intel expects fourth-quarter revenue to be $10.1 billion, plus or minus $400 million. In the prior-year period, Intel posted earnings of $0.04 per share on revenues of $8.2 billion.
Other companies slated to issue forth financial results Thursday include Briggs & Stratton (BGG), CRA International (CRAI), Quidel (QDEL), and Shuffle Master (SHFL).
Financial services firm JPMorgan Chase & Co. (JPM) is scheduled to report fourth-quarter results Friday, January 15, with analysts projecting earnings of $0.62 per share, on revenues of $27.02 billion.
Stay tuned to RTTNews for more updates, as the season unfolds.
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