earnings this week: Albertsons, Coldwater Creek, Deere, Hormel Foods and Mobile
CHICAGO--(BUSINESS WIRE)--Nov. 22, 2005
Zacks.com releases its exclusive Weekly Earnings and
Sector Update written by Dirk Van Dijk, Director of Research for Zacks
Equity Research. In addition, the following companies will report
earnings this week: Albertsons, Inc. (NYSE:ABS), Coldwater Creek
(NASDAQ:CWTR), Deere & Co. (NYSE:DE), Hormel Foods (NYSE:HRL) and
Mobile TeleSystems (NYSE:MBT). To see this week's full report then
This vital update provides investors with timely information
regarding companies that will be reporting their earnings in the
coming week, how companies' earnings faired the week prior, exclusive
sector rankings, and earnings commentary. Below you will find a
synopsis of this week's earnings commentary including estimates and
the Zacks Rank for the previously mentioned companies.
Companies Making an Announcement This Week:
Ticker Company Name Date EPS Estimate ZacksRank(a)
------ ---------------- ------ ------------ ------------
ABS Albertsons, Inc. 11/22 .27 3
CWTR Coldwater Creek 11/22 .19 2
DE Deere & Co. 11/22 .79 3
HRL Hormel Foods 11/23 .57 2
MBT Mobile TeleSys 11/23 .66 3
To see the complete Weekly Earnings and Sector Update with the
entire list of companies reporting this week and sector rankings,
Synopsis of Weekly Earnings and Sector Update by Dirk Van Dijk
The third-quarter earnings season is almost over, with nearly 95%
of S&P 500 firms having already reported. So far most companies are
doing better than analysts expected. A total of 318 firms have
exceeded expectations, 100 have disappointed and 63 have hit
expectations right on the nail. This has led to a dramatic turnaround
in the estimate revisions picture, particularly for this year.
However, this has not been the case for all stocks, and a very high
percentage of firms with positive surprises for the third quarter are
suffering cuts for the fourth quarter, or even for 2005 as a whole.
The pullback in oil prices has taken a toll on the earnings
estimates for the Energy sector, at least for this year, but not for
next year. The sector actually suffered a slight decline in its
average estimate for this year. It still continues to see strong
upwards momentum in its 2006 estimates.
Measured either by total net income growth, or by the growth rate
of the median firm, the S&P 500 is expected to post double digit
growth for both 2005 and 2006. However, on a median basis, earnings
growth is expected to decelerate from 13.9% in 2005 to 12.2% in 2006,
while on a total net income basis it is expected to rise to 12.7% from
11.7% in 2005. The differences between these measures indicates a
somewhat better performance for mid- to large-cap companies in 2005,
but a better relative earnings performance in 2006 for mega-cap
-- Over the last month, 274 firms have seen estimate increases,
while 211 have been cut for this year, a ratio of 1.30, down
from 1.35 last week. However, the average estimate fell 0.15%.
-- For 2006, the estimates rose for 241 and fell for 229, a ratio
of 1.05, up from 0.98 last week. The average estimate fell
-- A total of 2,134 current fiscal year estimates were increased
over the last month for this year while 1,624 were cut (ratio
of 1.31). Below last week reading of 1.35.
-- For 2006, 1,522 estimates were increased and 1,439 were cut a
ratio of 1.06, and inline with last week's reading of 1.05.
-- Median expected growth rates for S&P 500 firms are 13.9% for
2005 and 12.2% for 2006
-- Total net income for the S&P 500 expected to rise 12.7% in
2005 and a further 11.7% in 2006.
(a) About the Zacks Rank
For over 17 years, the Zacks Rank has proven that "Earnings
estimate revisions are the most powerful force impacting stock
prices." Since inception in 1988, #1 Rank stocks have generated an
average annual return of +33%. During the 2000-2002 bear market, Zacks
#1 Rank stocks gained 43.8%, while the S&P 500 tumbled 37.6%. Also
note that the Zacks Rank system has just as many Strong Sell
recommendations (Rank #5) as Strong Buy recommendations (Rank #1).
Since 1988, Zacks Rank #5 stocks have underperformed the S&P 500 by
143.5% annually (+4.9% vs. +12%). Thus, the Zacks Rank system allows
investors to truly manage portfolio trading effectively.
Truly taking advantage of the Zacks Rank requires the
understanding of how it works. That's why we created the free special
report, "Zacks Rank Guide: Harnessing the Power of Earnings Estimate
Revisions." Download your free copy now to prosper in the years to
come by going to http://at.zacks.com/?id=107
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Zacks Investment Research, Inc. Zacks.com displays the Zacks Rank with
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Zacks Investment Research is under common control with affiliated
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may engage in transactions involving the foregoing securities for the
clients of such affiliates.
Disclaimer: The Zacks Rank performance is the total return of
equal weighted simulated portfolios consisting of those stocks with
the indicated Zacks Rank net of fees. Results reflect the reinvestment
of dividends and other earnings. Simulated results do not represent
actual trading and may not reflect the impact that economic and market
factors might have had on decision-making if an adviser were actually
managing a client's money.
(b) The S&P 500 Index is a well-known, unmanaged index of the
prices of 500 large-company common stocks, mainly blue-chip stocks,
selected by Standard & Poor's. The S&P 500 Index assumes reinvestment
of dividends but does not reflect advisory fees. An investor cannot
invest directly in an index.
Disclaimer: Past performance does not guarantee future results.
Investors should always research companies and securities before
making any investments. Nothing herein should be construed as an offer
or solicitation to buy or sell any security.
Jim Giaquinto, 312-630-9880 x 268
-0- Nov/22/2005 11:00 GMT
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