Earnings Preview For Sep 29 - Oct 3

As I write this, we are continuing to await a final decision on the proposed bailout of financial firms. The final outcome will impact market direction.

I would expect a short-term relief rally if the proposal is passed and signed. Failure to reach an agreement, however, could result in stocks setting new lows for the year.

Third-quarter earnings season will not “officially” start until Oct 7, when Alcoa (AA) reports. Nonetheless, 21 companies are confirmed to report during the week of Sep 29 - Oct 3. Among these are S&P 500 members Constellation Brands (STZ), Family Dollar (FDO), Marriott International (MAR), Micron Technology (MU), Pepsi Bottling Group (PBG) and Walgreen (WAG).

September employment data will be released on Friday, capping a busy week for economic data.

• Monday: August personal income and spending
• Tuesday: Conference Board September consumer confidence survey, September Chicago PMI
• Wednesday: September ISM manufacturing index, September auto sales, August construction spending, weekly crude inventories
• Thursday: August factory orders, weekly initial jobless claims
• Friday: September unemployment and nonfarm payrolls, ISM services index

The Federal Reserve’s web site is not listing any scheduled speeches from Fed officials.

Rosh Hashanah starts Monday at sundown. This should result in lower volume on Tuesday.

Companies That Could Issue Positive Earnings Surprises

Family Dollar Stores (FDO) enjoyed a 3.6% increase in same-store sales last month. Several of the covering brokerage analysts responded by raising their fiscal fourth-quarter profit projections. The consensus estimate now calls for the discount retailer to have earned 34 cents per share, a penny above the average forecast of a few weeks ago. The most accurate consensus is even more bullish at 35 cents per share. Family Dollar Store is scheduled to report on Friday, Oct 3, before the start of trading.

Companies That Could Issue Negative Earnings Surprises

Xyratex Ltd (XRTX) has missed consensus during 2 out of the past 4 quarters. Within the past week, 1 of the 5 covering brokerage analysts cut his profit forecast ahead of the company’s fiscal third-quarter report. The revision sent the consensus estimate down by 2 cents to 33 cents per share. The most accurate estimate is more bearish at 28 cents per share. Xyratex is scheduled to reporton Tuesday, Sep 30, after close of trading.

Earnings Calendar

Here is a list of companies that we have confirmed will report during the week of Sep 9 - Oct 3.

BMO = Before The Market Open, AMC = After Market Close

Aditi Samajpati contributed to this article.

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