Earnings Expectations for the Week of September 26


27% profits every 20 days?

This is what Nic Chahine averages with his options buys. Not selling covered calls or spreads... BUYING options. Most traders don't even have a winning percentage of 27% buying options. He has an 83% win rate. Here's how he does it.


As the month and the calendar quarter wind down this week, only a handful of companies are scheduled to report their earnings results. These include Accenture (NYSE: ACN), Darden Restaurants (NYSE: DRI), Family Dollar (NYSE: FDO), Jabil Circuit (NYSE: JBL), McCormick (NYSE: MKC) and Walgreen (NYSE: WAG). Here is a quick look at what analysts expect from these reports. Irish consulting and outsourcing firm Accenture is expected to report Tuesday that its fiscal fourth-quarter earnings rose 25.8% from a year ago to $0.89 per share. And revenues are anticipated to have risen 20.1% to $6.5 million. The full-year forecast calls for $3.39 per share (up 21.5%) on $25.3 billion (up 17.4%). Analysts have underestimated Accenture's EPS in the past five quarters. And per-share earnings are predicted to grow 10.3% over the next five years. The share price has not recovered from the sell-off in July and August, and it is more than 11% lower than three months ago. But the stock has outperformed the broader markets year to date.Darden Restaurants, which operates the Bahama Breeze, Olive Garden and Red Lobster chains, last week said it expects annual revenue to increase by as much as 53% by fiscal 2016. When Darden posts its fiscal first-quarter results on Wednesday, the company is expected to offer up $0.78 per share earnings and $1.9 billion in revenues. A year ago, earnings were $0.80 per share and revenues totaled $1.8 billion. Darden has fallen short of consensus estimates once in the past ten quarters and matched expectations in the fourth quarter. This S&P 500 component has a forward earnings multiple of 10.7, a dividend yield of 3.7% and a return on equity of 25.0%. But Darden's share price also has not recovered from the August sell-off. It is about 14% lower than the 52-week high back in July. But over the past six months, the stock has outperformed competitors Brinker International (NYSE: EAT) and DineEquity (NYSE: DIN).Analysts are looking for Charlotte, N.C.-based Family Dollar to report Wednesday that its per-share earnings rose 11.1% year over year to $0.63. And for the fiscal fourth quarter during which Bill Ackman's Pershing Square Capital Management took an additional stake in the discount retailer, revenues are expected to total $2.1 billion. That would be an increase of 8.6% from a year ago. The full-year forecast calls for $3.09 per share (up 15.2%) on $8.5 billion (up 8.6%). Note that Family Dollar missed consensus EPS estimates in two of the past six quarters. Except for the sell-off in August, shares have traded mostly between $50 and $55 since February and ended last week at $54.64. Year to date, the stock has outperformed Walmart (NYSE: WMT) but underperformed competitors Dollar General (NYSE: DG) and Dollar Tree (NASDAQ: DLTR).During the three months that ended in August, electronics design and product management services provider Jabil Circuit completed its share buyback program and announced it would acquire Telmar Network Technology. Earnings for that period are expected to come in at $0.56 per share on revenue of $4.2 billion. That compares to $0.52 per share and $3.9 billion in the fourth quarter of last year. And the full-year forecast is for $2.29 per share (up 33.6%) on $16.4 billion (up 22.5%). The long-term EPS growth forecast is 17.7%. The share price is up more than 8% in the past month but still down about 18% year to date. The stock has outperformed competitor Flextronics (NASDAQ: FLEX) but underperformed the S&P 500 since the beginning of the year.Analysts are looking for McCormick, the Maryland-based maker of herbs, spices and marinades, to post $0.64 per share earnings in Wednesday's fiscal third-quarter report. That would be a slump from $0.66 per share a year ago. But revenues for the quarter are forecast to have grown 9.7% to $871.6 million. Analysts have underestimated McCormick's per-share earnings in the past six quarters. This S&P 500 component has a dividend yield of 2.4% and a return on equity of 26.5%. Since the sell-off in August, the share price has bounced between $44 and $48, down from the 52-week high of $50.97 in July. Over the past six months, the stock has underperformed General Mills (NYSE: GIS) and Kellogg (NYSE: K).During the three months that ended in August, Walgreen launched a new store brand and also said it would begin offering health insurance. The consensus forecast for that period calls for $0.55 per share earnings on revenue of $17.9 billion. That is up from $0.49 per share and $16.9 billion in the fiscal fourth quarter of last year. The full-year forecast is for EPS to rise 17.1% to $2.29 and revenue to be up 6.9% to $72.1 billion. The long-term EPS growth forecast is 12.7% and the dividend yield is 2.6%. Walgreen shares also have not recovered from the August sell-off and are about 15% lower than three months ago. The stock has underperformed CVS Caremark (NYSE: CVS) and Rite Aid (NYSE: RAD) in that time.

27% profits every 20 days?

This is what Nic Chahine averages with his options buys. Not selling covered calls or spreads... BUYING options. Most traders don't even have a winning percentage of 27% buying options. He has an 83% win rate. Here's how he does it.


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Posted In: EarningsLong IdeasShort IdeasPreviewsRestaurantsPre-Market OutlookTrading IdeasGeneralaccentureanalyst forecastsBill AckmanBrinker Internationalcvs caremarkDarden RestaurantsDineequitydollar generalDollar Treeearnings expectationsearnings previewsfamily dollarGeneral MillsJabil CircuitKelloggmccormickOlive GardenPershing Square Capital ManagementRed LobsterRite AidwalgreenWalmart