Earnings Expectations for the Week of June 27

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As the calendar quarter winds down this week, S&P 500 components scheduled to report quarterly results include Family Dollar Stores, General Mills, Monsanto and Nike. Analysts on average are expecting to see year-over-year earnings growth from each of them. Here are the consensus per-share earnings estimates for some companies forecast to post earnings growth this week:
Acuity Brands AYI:
up 23.8% to $0.63 per share

Monsanto MON:
up 23.4% to $1.11 per share

General Mills GIS:
up 21.2% to $0.52 per share

Family Dollar Stores FDO:
up 18.9% to $0.95 per share

Worthington Industries WOR:
up 16.4% to $0.55 per share

Shaw Group SHAW:
up 16.2% to $0.68 per share

Darden Restaurants DRI:
up 11.0% to $1.00 per share

McCormick MKC:
up 9.3% to $0.54 per share

Nike NKE:
up 8.6% to $1.16 per share

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American Greetings
AM
, Progress Software
PRGS
and Constellation Brands
STZ
are expected to report per-share earnings that are about the same as a year ago. Analysts are anticipating earnings declines from these companies:
Smith & Wesson SWHC:
down 37.5% to $0.05 per share

Apollo Group APOL:
down 23.6% to $1.33 per share

Schnitzer Steel SCHN:
down 16.8% to $1.19 per share

If Xyratex
XRTX
falls short of the consensus earnings forecast, the tech company will report a net loss for its second quarter. KB Home
KBH
is expected to report a net loss, but a narrower one compared to a year ago. The following is a closer look at what analysts expect from some of this week's most anticipated quarterly reports.
Monsanto
This St. Louis-based biotech giant is forecast to post fiscal third-quarter earnings of $1.11 per share on revenues of $3.4 billion. That is up from $0.81 per share and $2.9 billion in the same period of last year. Per-share earnings have come within a penny or three of analyst estimates in each of the past seven quarters. So far analysts anticipate full-year earnings up 14.8% to $2.83 per share and revenues up 8.3% to $11.4 billion. The long-term earnings per share growth forecast is 15.1% and the dividend yield is 1.7%. During the three months that ended in May, Monsanto announced a $300 million debt offering and received regulatory approval for its Genuity SmartStax RIB Complete product. Analysts have a mean price target of $75.17 per share on the stock, which gives it plenty of room to run from $65.96 per share at Friday's close. But shares have traded mostly between $65 and $70 since early March. While the stock has underperformed the broader markets year to date, it has outperformed the agricultural chemicals industry average.
General Mills
Analysts are looking for this Minneapolis-based maker of Cheerios and Wheaties to report fiscal fourth-quarter earnings of $0.52 per share on revenues of $3.7 billion. That is up from $0.41 per share and $3.6 billion in the same period of last year. Full-year earnings are anticipated to have risen 7.3% from a year ago to $2.48 per share, while revenues are up marginally to $14.9 billion. Analyst estimates of per-share earnings have been within a few cents of results in the past five quarters; the consensus EPS forecast was on the money in the third quarter. This packaged foods producer has a dividend yield of 3.0% and return on equity of 27.3%. Its price-to-earnings ratio is much less than the food and beverage industry average. During the three months that ended in May, General Mills partnered with Groupon and also announced the pending acquisition of a controlling stake in yogurt maker Yoplait. Analysts on average recommend buying the stock, and they have a mean price target on it of $41.25 per share. The share price ended the week at $36.85, after falling nearly 6% in the past month. Still, the stock has outperformed the broader markets since the beginning of the year, even if it has not kept up with rival Kellogg
K
in that time.
Family Dollar
The consensus forecast is that the operator of the nation's number two dollar-store chain will report fiscal third-quarter per-share earnings of $0.95, which is up from $0.77 per share in the same period of last year. Analysts also expect to see revenues of $2.2 billion, an increase of 8.4% from a year ago. Note that the earnings results have been better than expected in all but one of the past eight quarters. And analysts are looking for year-over-year growth of both earnings and revenues in the current quarter as well. Family Dollar launched an alliance with a private brands marketing firm and also appointed a new vice president in charge of real estate development during the three months that ended in May. The company has a dividend yield of 1.2% and a return on equity of 21.4%. The long-term earnings per share growth forecast is 14.5%. Note that analysts have a mean price target on the stock of $52.47 per share. That is not much higher than the $52.26 where shares ended last week. Shares have traded mostly between $50 and $55 since mid February; the stock has underperformed competitors Dollar General
DG
and Dollar Tree
DLTR
during that time.
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Posted In: EarningsLong IdeasPrice TargetPreviewsTrading Ideasacuity brandsAmerican GreetingsApollo GroupCheeriosConstellation BrandsDarden Restaurantsdollar generalDollar Treeearnings previewsFamily Dollar StoresGeneral MillsGenuity SmartStax RIB CompleteGrouponKB HomeKelloggMcCormckMonsantoNikeprogress softwareSchnitzer SteelShaw GroupSmith & WessonWheatiesWorthington IndustriesxyratexYoplait
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