Stimulus measures and hope of economic recovery during the last leg of this year has pumped some enthusiasm in the markets, with the major indexes managing to post double-digit percentage gains for the second quarter ended June 30. The DOW rose 11%, while the S&P 500 rose 15.2% - posting their first quarterly gains since the third quarter of 2007. As Wall Street gears to relentlessly churn out June-quarter score cards, the limelight will be on the companies' performance and more particularly on forecasts that may help determine the future direction of the markets. As usual, Aluminum giant Alcoa Inc. (AA) will set the stage with its second-quarter earnings due for release after market-close on July 8.
Industry experts are reckoning that second-quarter earnings for the companies that contour the S&P 500 will witness a decline of 34.7%, with most of the sectors expected to decline, except the health and consumer staples sectors.
Alcoa, the litmus test for the season, is expected to incur a loss of $0.34 per share on revenues of $3.94 billion for the second quarter. In the prior year period, the company posted earnings of $0.66 per share on revenues of $7.62 billion.
Rubber and plastic products maker A. Schulman Inc. (SHLM) will issue second-quarter results before market opens on July 8, with analysts projecting earnings of $0.09 per share on revenues of $353.20 million. In the year-ago period, the company reported adjusted earnings of $0.29 per share on net sales of $479.8 million.
Discount retail chain Family Dollar Stores Inc. (FDO) will announce cents-and-dollar details of its third quarter before market opens on July 8. Analysts are looking for earnings of $0.59 per share, higher than the previous year's earnings of $0.46 per share.
On June 4, the retailer reported a 6.2% growth in comparable store sales for the third quarter largely driven by double-digit increase in consumable merchandise sales. Net sales for the third-quarter totaled $1.84 billion, up 8.2% from the last year's sales of $1.70 billion. Further, Family Dollar said it expects third quarter earnings at or above the upper end of the previously issued guidance of $0.54 - $0.58 per share.
Yet another major company to release financial results on July 8 is Pepsi Bottling Group Inc. (PBG), from which analysts are expecting earnings of $0.73 per share on revenues of $3.45 billion. In the year-ago period, the company earned $0.78 per share on revenues of $3.52 billion. Last month, the Pepsi-Cola beverages maker said it currently expects second-quarter comparable earnings to range between $0.70 and $0.74 per share, up 5 cents from the previously communicated range of $0.65 - $0.69 per share. Reported earnings are now estimated to be in the range of $0.90 - $0.98 per share for the second quarter of fiscal 2009. Most recently, PepsiCo Inc. (PEP) and Pepsi Bottling Group announced its plans to invest US$1 billion in Russia over three years.
July 9
Networking solutions provider 3Com Corp. (COMS) is slated to release fourth-quarter report card before market opens on July 9, as analysts forecast earnings of $0.05 per share on revenues of $294.78 million for the quarter. In the year-ago period, the company incurred a loss of $0.41 per share on revenues of $321.3 million.
Enterprise software developer Lawson Software Inc. (LWSN) is due to release its fourth-quarter numbers after the market closes on July 9, with analysts forecasting earnings of $0.10 per share on revenues of $177.12 million. In the prior year quarter, the company posted non-GAAP earnings of $0.10 per share on total revenues of $233.0 million.
While releasing third-quarter results, the company said it projects fourth-quarter GAAP earnings to range between $0.04 and $0.07 per share and non-GAAP earnings in the range of $0.08 - $0.10 per share that excludes about $9 million of pre-tax expenses. Lawson Software also expects revenues for the fourth quarter in a range of $175 million - $182 million.
Engineering and construction company Shaw Group Inc. (SGR) is scheduled to publish third-quarter results at 4:00 pm ET on July 9, with analysts expecting earnings of $0.60 per share on revenues of $1.79 billion. In the year-ago period, the company reported adjusted earnings of $0.70 per share on revenues of $1.82 billion.
In early April, Shaw Group said it expects fiscal 2009 earnings, excluding the Westinghouse segment, of $2.10 - $2.30 per share, and revenue of $7.1 billion - $7.3 billion, while analysts expect the company to post earnings of $2.21 per share on revenues of $7.18 billion for the full year.
July 10
Shopping warehouse clubs operator PriceSmart Inc. (PSMT) will lay out third-quarter results before the market opens on July 10. Wall Street analysts have a consensus earnings estimate of $0.33 per share on revenues of $308.99 million, higher than the previous year's earnings of $0.18 per share and revenues of $224.3 million.
Auto insurance group Progressive Corp. (PGR) is due to publicize its second-quarter progress card on July 10, with analysts estimating earnings of $0.36 per share on revenues of $3.54 billion, higher than the previous year's earnings of $0.32 per share.
The following weeks will border on the hectic at Wall Street. Stay tuned to RTTNews to keep in touch with the flurry of earnings reports to get the latest news as it breaks out.
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