Market Overview

Earnings Highlights for the Week of June 6

S&P 500 components scheduled to report quarterly results this week include J.M. Smucker (NYSE: SJM), National Semiconductor (NYSE: NSM) and Pall Corp. (NYSE: PLL). While analysts on average are expecting strong earnings growth from Pall, the consensus forecast for Smucker is earnings about the same as a year ago, and a decline in per-share earnings from National Semiconductor. The latter is expected to post a year-over-year decline in sales as well.

Here are the consensus per-share earnings estimates for some companies anticipated to post earnings growth this week:

LDK Solar (NYSE: LDK): up 93.0% to $0.86 per share
Navistar International (NYSE: NAV): up 64.1% to $1.17 per share
Men's Wearhouse (NYSE: MW): up 46.9% to $0.49 per share
Oxford Industries (NYSE: OXM): up 24.0% to $1.00 per share
Pall Corp. (NYSE: PLL): up 18.3% to $0.71 per share
Analogic (NASDAQ: ALOG): up 13.6% to $0.44 per share
Greif (NYSE: GEF): up 10.4% to $0.96 per share
Vail Resorts (NYSE: MTN): up 7.5% to $2.14 per share

Analysts' expectations are perhaps lowest for this week's results from Ciena (NASDAQ: CIEN), Hovnanian Enterprises (NYSE: HOV) and Talbots (NYSE: TLB). Earnings from retailer Talbots are expected to have plunged from the same period a year ago, with revenues falling as well. Ciena and Hovnanian are both anticipated to report new losses. But Ciena's loss is expected to be narrower than a year ago and revenues are forecast to have surged. Homebuilder Hovnanian's loss is forecast to be wider, with revenues falling as well.

Here is what analysts expect from companies likely to report declining earnings this week:

Talbots (NYSE: TLB): down 92.1% to $0.03 per share
National Semiconductor (NYSE: NSM): down 18.2% to $0.27 per share
Bob Evans Farms (NASDAQ: BOBE): down 2.9% to $0.66 per share

Following is a closer look at some of this week's anticipated earnings winners.

LDK Solar

This Chinese manufacturer of photovoltaic components is forecast to post fiscal first-quarter earnings of $0.86 per share on revenues of $769.5 million. That is up from $0.06 per share and $347.6 million in the same period of last year. Per-share earnings have grown in each of the past four quarters, topping consensus estimates each time. So far analysts anticipate sequential and year-over-year revenue growth in the second quarter.

The long-term earnings per share growth forecast is 25.0% and the price-to-earnings ratio is 3.2. During the first quarter, LDK acquired a controlling stake in a photovoltaic facilities developer and expanded its management team. Analysts have a mean price target of $12.80 per share, which gives the stock plenty of room to run from $6.78 per share at Friday's close. But year to date, the share price is down 33.0%. The stock has outperformed competitors MEMC Electronic Materials (NYSE: WFR) and Yingli Green Energy (NYSE: YGE) over the past year, though.

Navistar

Analysts are looking for this Illinois-based maker of trucks and engines to report second-quarter earnings of $1.17 per share on revenues of $3.3 billion. That is up from $0.42 per share and $2.7 billion in the same period of last year. Analysts underestimated per-share earnings in three of the past four quarters, but Navistar missed consensus estimates by 7 cents per share in the first quarter. Looking ahead to the current quarter, the forecast so far calls for sequential and year-over-year growth of both earnings and revenues.

Navistar has a price-to-earnings ratio that is much less than the automotive industry average, a PEG ratio of 0.9, and a long-term earnings per share growth forecast of 10.4%. During the second quarter, the company received an order from the U.S. Army for troop transport vehicles to be used in Afghanistan and another for ambulances from the Marines. The consensus recommendation of analysts is to buy the stock, and their mean price target is $77.87 per share. The share price ended the week at $63.36 after pulling back in recent weeks from a 52-week high of $71.49. Year to date, the stock has outperformed competitors Oshkosh (NYSE: OSK) and PACCAR (NASDAQ: PCAR), as well as the broader markets.

Men's Wearhouse

The consensus forecast is that this Houston-based retailer will post fiscal first-quarter per-share earnings of $0.49, which is up from $0.26 per share in the same period of last year. Analysts also expect to see revenues of $577.3 million, an increase of 21.9% from a year ago. Note that the earnings results have been better than expected in the past five quarters, beating estimates by as much as 12 cents per share. And analysts are looking for sequential and year-over-year growth of both earnings and revenues in the current quarter.

Men's Wearhouse founder George Zimmer will step down as CEO this month and be replaced by COO Douglas Ewert. The company has a dividend yield of 0.5%. The long-term earnings per share growth forecast of is just 8.3% and the 22.0 P/E ratio and 1.9 PEG ratio suggest that the stock is overvalued. Yet analysts on average recommend buying MW and have for more than 90 days. The mean price target currently is $34.25 per share. The share price ended last week $31.92, which is 27.7% higher than at the beginning of the year. In that time, the stock has outperformed the broader markets and the apparel retail industry average.

Posted-In: Analogic Bob Evans Farms ciena Douglas Ewert George Zimmer Greif hovnanian hovnanian enterprises J.M. Smucker ldk solar MEMC Electronic Materials Men's Wearhouse national semiconductor navistar Oshkosh oxford industries PACCAR Pall Corp. Smucker Talbots vail resorts yingli green energyEarnings Long Ideas Short Ideas Previews Trading Ideas Best of Benzinga

 

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