US Stock Market: Earnings Preview For Nov 24 - 28

The U.S. financial markets will be closed on Thursday in observance of Thanksgiving. On Friday, Nov 28, stock exchanges will close at 1 p.m. ET.

As would be expected for a holiday-shortened week, the financial calendar is pretty light.

Only 62 companies have been confirmed to report. Joining Dow component Hewlett-Packard (HPQ) will be fellow S&P 500 members Analog Devices (ADI), Campbell Soup (CPB), Deere & Co. (DE), D.R. Horton (DHI) and Tiffany & Co. (TIF).

Much of the week’s economic data will be released on Wednesday morning because of the holiday. Key reports will include existing and new home sales and durable goods orders.

• Monday: October existing home sales
• Tuesday: November Conference Board consumer confidence, preliminary third-quarter GDP
• Wednesday: October new home sales, October durable goods, October personal income and spending, November Chicago PMI, final November University of Michigan consumer confidence, weekly crude inventories, weekly initial jobless claims

No Fed members are scheduled to deliver speeches.

I expect the markets to remain volatile throughout the week, especially with volume being below average on Wednesday. It’s a short week and investors should use it to spend time with family and friends.

On behalf of everyone here, have a happy Thanksgiving.

Companies That Could Issue Positive Earnings Surprises

Dollar Tree Inc. (DLTR) reported a 6.2% rise in same-store sales for the third quarter, helped by increased customer traffic and higher spending during Halloween. Total sales rose more than 11% to $1.11 billion, prompting 3 of the 9 covering brokerage analysts to raise their profit forecasts. These revisions pushed the consensus earnings estimate up by a penny to 44 cents per share. The most accurate estimate is slightly more bullish at 45 cents per share. The company has topped consensus estimates for 4 consecutive quarters. Dollar Tree is scheduled to report earnings on Tuesday, Nov 25, before the open of trading.

Netezza Corporation (NZ) has topped consensus earnings estimate for 4 consecutive quarters. Ahead of the company’s third-quarter report, one brokerage analyst has raised his forecast. The revision was not enough to move the consensus earnings estimate from 4 cents per share, but it did result in a most accurate estimate of 5 cents per share. Netezza is scheduled to report earnings on Tuesday, Nov 25, after the close of trading.

Last week, Hewlett-Packard (HPQ) preannounced non-GAAP fiscal fourth-quarter earnings of $1.03 per share. Revisions by 6 brokerage analysts pushed the consensus earnings estimate up to $1.02 per share. HPQ has topped expectations for 16 consecutive quarters and another positive surprise seems likely.

How traders will respond to the company’s fiscal 2009 outlook is unknown. HPQ’s preliminary fiscal 2009 forecast calls for non-GAAP earnings of $3.88 to $4.03 per share. Cuts by 6 brokerage analysts last week lowered the consensus earnings estimate by 10 cents to $3.84 per share, however. Hewlett-Packard is scheduled to report on Monday, Nov 24, after the close of trading.

Companies That Could Issue Negative Earnings Surprises

CBRL Group Inc (CBRL) has missed disappointed investors during 3 out of the last 4 quarters. Several analysts have cut their projections for the company recently, amid fears of further weakness in the casual dining sector. The average forecast for the third quarter is now pegged at 51 cents per share, down from 55 cents a month ago. The most accurate estimate is slightly more bearish at 50 cents per share. CBRL Group is scheduled to report earnings on Monday, Nov 24, before the start of trading.

Eaton Vance Corporation (EV) is getting hit amid the bearish outlook for the wider asset management industry. The consensus estimate for EV’s fiscal fourth-quarter earnings has been cut to 35 cents during the past 30 days, reflecting cuts by 5 brokerage analysts. The most accurate estimate is more bearish at 34 cents per share. Eaton Vance is scheduled to report earnings on Tueday, Nov 25, before the start of trading.

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Comment by Stockmarketbasics

2008-11-24 00:13:35

To start with, two or three types of industries may be selected, and slowly after gaining some amount on these shares, some profit could be made which could be diverted to buying other shares, or if there is some amount available to be invested, shares in different industries could be purchased. Also a good portfolio is one which can be capable of being handled by the investor. By such methods a good portfolio could be built up over a period of time.

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