Earnings expectations for this week
Alcoa kicks off the season Tuesday, and Wells Fargo is set to post results Friday.
The new earnings season gets underway this week, with Alcoa (AA) on deck Tuesday and Wells Fargo (WFC) scheduled to report fourth-quarter results on Friday. By and large, analysts expect to see year-over-year growth in per-share earnings for the quarter from both of these S&P 500 components.
This leading aluminum producer is expected to report Tuesday afternoon fourth quarter earnings of 6 cents per share. That compares with a net loss of 3 cents per share in the same period of the previous year. The consensus earnings per share estimate has slipped in the past 30 days from 8 cents per share.
Analysts on average expect fourth-quarter revenue to total $5.61 billion, which would be down more than 6% from a year ago. Revenue also declined in the previous two quarters.
The full-year forecast calls for $0.24 EPS on $23.36 billion in revenue, which would be down from $0.72 per share and $24.95 billion in 2011. This consensus EPS forecast has also fallen from $0.26 per share some 30 days ago.
On Friday morning, the first of the big banks to report its fourth-quarter results is expected post earnings of $0.89 per share. That would be about 18% higher than in the year-ago quarter. The full-year EPS estimate of $3.35 is also considerably higher from $2.82 per share in the previous year. Wells Fargo has fallen short of consensus EPS estimates in only one of the past 10 quarters.
Fourth-quarter revenue are expected to total $21.29 billion, which would be more than 3% higher than a year ago. Analysts predict that full-year revenue will total $85.69 billion, or up from $80.95 billion a year earlier.
Revenue has increased about 9% over the past five years, and analysts project per-share earnings to grow about nine% over the next five years.
Monsanto (MON): The consensus estimate calls for a 37% increase in EPS year-over-year to $0.37 and an 8% increase in sales to $2.64 billion for the fiscal first quarter. Note that Monsanto posted a bigger-than-expected net loss in the previous quarter. The agricultural biotech company reports Tuesday before the markets open.
Apollo Group (APOL): Analysts on average expect this for-profit education company to report Tuesday afternoon an almost 30% decline in its per-share earnings to $0.90 and a 12% fall in revenue year-over-year to $1.03 billion. But analysts have underestimated Apollo Group's EPS in the previous ten quarters.
Constellation Brands (STZ): This producer and distributor of alcoholic beverages is expected to report $0.55 per share earnings and sales of $751.83 million for the fiscal third quarter. That compares with $0.50 per share and $700.70 million in revenue in the same period of last year. In the previous quarter, EPS topped the consensus estimate by more than 31%. The company is scheduled to share its results Wednesday morning.
SUPERVALU (SVU): This frequent target of takeover chatter is expected to post a profit of $0.06 per share while revenue are expected to slide more than 5% from the year-ago period to $7.90 billion. EPS fell well short of analysts' expectations in the previous two quarters. This supermarket operator is scheduled to share its results Thursday before the opening bell.
Others expected to report earnings growth this week include Acuity Brands (AYI), electrical equipment maker AZZ (AZZ), Global Payments (GPN), Helen of Troy (HELE), information services company IHS (IHS), Lindsay (LNN), MSC Industrial Direct (MSM), industrial services company Team (TISI) and WD-40 (WDFC).
Analysts expect to see a net loss from cement producer Texas Industries (TXI) and from U.K. tech company Xyratex (XRTX).
The earnings crunch ramps up the following week, with fourth-quarter results due from big banks Bank of America (BAC), Citigroup (C), Goldman Sachs (GS) and J.P. Morgan (JPM), as well as from eBay (EBAY), General Electric (GE), Intel (INTC), Schlumberger (SLB), UnitedHealth (UNH) and many others.
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Stocks drift lower and bonds are hit as investors await the Fed. Prepare for higher volatility this week.
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