Armchair quarterbacks are a dime a dozen each earnings season, breaking out their crystal balls and predicting which stocks will post strong earnings and sales and which ones will miss expectations. Take them with a grain of salt, but here are five earnings predictions for top stocks Boston Scientific (BSX), Caterpillar (CAT), Green Mountain Coffee Roasters (GMCR), Dupont (DD) and Norfolk Southern (NSC).
All five stocks report earnings early next week, on either Monday or Tuesday. Here are predictions on these five top stocks for earnings season:
Boston Scientific BSX Earnings – 4/26
Poor Boston Scientific (BSX). The medical device maker is down -20% since January 1, while the S&P 500 is up about +8% YTD. And unfortunately with earnings right around the corner that may not look so hot, BSX stock may be in for further moves downhill.
In the last four quarters, Boston Scientific earnings have either failed to meet the mark set by Wall Street or squeaked by with an exact hit on the earnings target. Profits have been pretty flat, but there hasn’t been a single earnings surprise. With a few downward revisions to estimates in recent weeks, don’t bet on a strong showing this time around for BSX stock on Monday.
Caterpillar CAT Earnings – 4/26
Industrial equipment giant Caterpillar (CAT) has soared so far this year, posting returns that have double the gains of the broader market. Caterpillar reported weak but improving fourth-quarter and full-year 2009 earnings, and some investors have been optimistic that things are turning around.
We’ll see if that’s the case on Monday. CAT earnings have impressed lately, with the company posting four consecutive quarters of blowout earnings that have been well above Wall Street expectations. Unfortunately, four analysts have lowered their outlook for Caterpillar earnings in the last month so the trend could be at a close.
Green Mountain Coffee Roasters GMCR Earnings – 4/26
After a big ride up in March, Green Mountain Coffee Roasters (GMCR) has seen a big ride down in April. The big cause for the move was Bank of America Merrill Lynch cutting its rating on GMCR to “underperform” citing the coffee maker’s valuation. But Green Mountain could be on the move again if it posts strong earnings on Monday. The last GMCR earnings report in January boasted a 163% jump in adjusted net income and a 77% increase in net sales for its fiscal first quarter.
The market is looking for earnings of 60 cents a share but with a track record of four consecutive earnings surprises – including earnings that beat forecasts by a whopping 69% last quarter – another big earnings report could be in the work for Green Mountain Coffee Roasters.
Dupont DD Earnings - 4/27
Blue chip icon Dupont (DD) is one of the biggest players on Wall Street, and one of the Dow Jones Industrial Average’s high yield dividend stocks. Though some think of this chemical giant as a stodgy large-cap without much “wiggle” in its shares, DD stock is up 16% so far this year – significantly better than the rest of the market.
Dupont could keep up this winning streak on a strong earnings report next Tuesday. The company has topped forecasts in each of the last four quarters with an average earnings surprise of about 16%. That’s no small feat considering this stock is widely covered by some of the best in the business. With a number of upward revisions to estimates in reent weeks, another double-digit surprise could be in the works when Dupont earnings roll out.
Norfolk Southern NSC Earnings - 4/27
Nothing is ever a sure thing on Wall Street, but if you want one of the closest things to a lock you should bank on Norfolk Southern (NSC) earnings beating expectations next Tuesday. And here’s why:
NSC has seen earnings grow substantially in each of the last four quarters. Norfolk Southern is one of the most watched firms on Wall Street, with over 25 analysts – and 15 of these stock experts have revised up their forecasts for NSC earnings in the last month! Shares have been steadily marching upwards in 2010, up about 14% since January 1, and there could be significant upwards potential for the rest of the year if Norfolk Southern keeps up its trend of earnings improvement.