Market Overview

Earnings Expectations for the Week of February 13


Analysts expect to see double-digit per-share earnings growth from Agilent Technologies (NYSE: A), Apache (NYSE: APA), CBS (NYSE: CBS), Comcast (NASDAQ: CMCSA), DirecTV (NASDAQ: DTV) and Marriot International (NYSE: MAR) when they report quarterly results this week. Other prominent reports on the schedule include those from Smucker (NYSE: SJM), Deere (NYSE: DE) and MetLife (NYSE: MET), which are forecast to post earnings growth as well, and Abercrombie & Fitch (NYSE: ANF), Applied Materials (NASDAQ: AMAT), Campbell Soup (NYSE: CPB) and General Motors (NYSE: GM), from which a decline in earnings is anticipated.

Abercrombie & Fitch (NYSE: ANF) and Nordstrom (NYSE: JWN) kick off this season's crunch of retail earnings reports, which gets in full swing the following week. Fourth-quarter revenue for both of these retailers is expected to be more than 13% higher year over year. But while Nordstrom's EPS are forecast to be up 5.5% to $1.10, Abercrombie's are predicted to have slipped 18.8% to $1.12. Sixty days ago, Abercrombie's EPS estimate was $1.58, and it missed the consensus estimate in the previous quarter by nearly 20%. Avon Products (NYSE: AVP) is expected to say Tuesday that its earnings fell eight cents from a year ago to $0.51 per share and that revenues also fell marginally. Expectations are high for apparel maker VF Corp. (NYSE: VFC), though: fourth-quarter EPS up 22.9% to $2.31 and revenues up 36.1% to $2.9 billion.

Analysts predict all four prominent media companies reporting this week will post earnings growth: CBS (NYSE: CBS) EPS up 13.2% to $0.53, Comcast (NASDAQ: CMCSA) EPS up 17.1% to $0.41, DirecTV (NASDAQ: DTV) EPS up 19.6% to $0.92, Discovery Communications (NASDAQ: DISCA) EPS up 23.2% to $0.69. Full-year EPS forecasts for all four include strong year-over-year growth as well. But of the four, only CBS is expected to have weak revenue growth: flat for the quarter and up 2.2% for the year. And note that both Comcast and DirecTV fell short of consensus EPS estimates in the previous quarter.

See also: Why Big Media Earnings May Beat Expectations.

As mentioned above, Campbell Soup (NYSE: CPB) is forecast to report on Friday lower per-share earnings: down 12.7% from a year ago to $0.62 for the fourth quarter and 7.1% lower to $2.36 for the year. Revenues for the quarter and the full year are forecast to be about the same as a year ago. Analysts are a bit more optimistic about earnings from JM Smucker (NYSE: SJM) and Dr Pepper Snapple Group (NYSE: DPS). EPS for the former are predicted to be up 2.8% for the fiscal third quarter, while EPS for the latter are 10.7% higher for the fourth quarter and up 11.7% for the year. Note that Smucker's revenues are expected to be strong: more than 17% higher for the quarter. And fiscal third-quarter earnings for HJ Heinz (NYSE: HNZ) are estimated at $0.85 per share, about the same as a year ago, with revenues up 6.2%.

Expectations for tech companies reporting this week are mixed. Analysts are looking for EPS that are between a nickel and a dime higher than a year ago from Agilent Technologies (NYSE: A) and NetApp (NASDAQ: NTAP). But Applied Materials (NASDAQ: AMAT) and Nvidia (NASDAQ: NVDA) are anticipated to say that EPS are down by double digits to $0.12 and $0.19, respectively. None of these four companies has fallen short of EPS estimates in the past five quarters. Revenues are forecast to be up between 7% and 23%, except for Applied Materials, which is expected to report a revenue decline.

General Motors (NYSE: GM) is forecast to post $0.41 per share for the fourth quarter, its lowest EPS since remerging from bankruptcy. But revenues for the quarter are expected to be up 3.6% to $38.2 billion, and full-year EPS are estimated at $3.91, a 23.0% increase from a year ago. Also, Goodyear Tire (NYSE: GT) is expected to post higher EPS and revenues on Tuesday.

See also: Will GM Ever Catch Up to Ford?

In Wednesday's report, Deere's (NYSE: DE) earnings are predicted to have risen three cents to $1.23 per share, while revenue rose 17.6% to $6.5 billion. Independent energy company Apache (NYSE: APA) is expected to be one of the week's biggest earnings winners, with fourth-quarter EPS forecast to be 23.7% higher than a year ago to $2.87. But Waste Management (NYSE: WM) EPS is expected to be the same as a year ago, while Vulcan Materials (NYSE: VMC) is likely to post another net loss.

And Marriot International's (NYSE: MAR) fourth-quarter EPS are anticipated be 17.0% higher year over year to $0.47, while those of MetLife (NYSE: MET) are forecast to have risen a dime per share to $1.24. And full-year EPS for both of them are expected to be up by double digits.


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