Earnings season has mostly wound down, but there are still a few key earnings reports to watch this week including Human Genome Science (HGSI), MBIA Inc. (MBI), Staples (SPLS), Tech Data (TECD), Verifone (PAY), BJ’s Wholesale (BJS), Costco (COST), CIEN Corp. (CIEN) and Sunpower Corporation (SPWRA). Here’s a look at what to expect from each, including Thomson Reuters data.
After the close today, Human Genome Science (HGSI) reports earnings. This is one of the most promising biotech stocks on the market today due to its pending Lupus drug approval with the FDA. The guidance for the FDA time frame will matter the most — any changes or delays will create some disappointment among traders.
MBIA Inc. (MBI) also reports today after the close, and investors will be looking to see if the company can pull a Radian (RDN) type of earnings report. The figures are expected to be atrocious from the mortgage and muni insurer at -$1.11 EPS versus -$5.30 a year ago.
Tuesday morning Staples (SPLS) reports earnings. We have already seen some mixed peer and supplier earnings in the sector, but earnings estimates are $0.39 EPS on $6.3 billion in revenues. Where this gets interesting is that this is expected to be a return to growth as it earned $0.36 EPS and had revenue of $6.17 billion for this same quarter a year ago. With shares at $25.90 and a 52-week range of $14.35 to $26.00, investors likely want to see more than just an ‘Easy Button.’
Tech Data (TECD) is also on deck Tuesday morning. What helps about Tech Data is that it is one of the world’s largest technology distribution and logistics companies in the world. In short, its guidance can give you an implied view of the tech sector as a whole from PCs to peripherals to consumer electronics. Based on estimates being 15% lower than a year ago now at $1.01 EPS on $6.03 billion in revenues. With shares around $44.00, its 52-week range is $16.20 to $48.83.
Verifone (PAY) is on deck Tuesday after the close. The payment processor has to do well here because the stock has now recovered all the way back up to its post-accounting irregularities implosion levels. In short, anyone who owned this in the last two years can either get out even or with a huge profit. Estimates are $0.23 EPS vs. $0.17 a year ago.
Before the open on Wednesday both BJ’s Wholesale (BJS) and Costco (COST) report. You know which will matter the most as Costco is multiple-times larger. BJ’s is expected to post $0.96 EPS on $2.79 billion in revenues. Costco is within 1% of its 52-week high of $61.52 ahead of this week’s earnings. Formal estimates for Wednesday are $0.71 EPS and $18.51 billion in revenues. Even if we blend 2010 and 2011 earnings estimates to derive a calendar year estimate, that is expensive at almost 20-times forward earnings.
On Thursday morning CIEN Corp. (CIEN) reports, and this communications equipment player is in a very interesting spot. Shares have come back almost all the way up from before it made a huge acquisition of Nortel’s optical and ethernet business in bankruptcy. That was not included as a full quarter by a reasonable count, so those sales benefits will be realized in the quarters ahead. Analysts are looking for a loss at -$0.06 EPS on $184.3 million in revenues.
Sunpower Corporation (SPWRA) is due on Thursday afternoon and will show us if it can maintain a stronger read than rival First Solar (FSLR) was able to give. The earnings target is $0.49 EPS on revenues of $489.6 million. To see how this compares elsewhere, the company reported $0.70 EPS and $400.9 million in revenues in the same quarter a year ago. In short, it is expected to see the same trends as peers — higher revenue but much lower margins. That is expected to continue this year as well but on slower sales growth. SunPower has a chance of being one of the most active up or down this week after earnings.
