Zacks Earnings Preview: Limited Brands, Lowe's, Mylan

Laboratories, Pacific Sunwear of California and Target 
CHICAGO--(BUSINESS WIRE)--May 21, 2007
Zacks.com releases the list of companies likely to issue earnings
surprises. This week's list includes Limited Brands (NYSE: LTD),
Lowe's (NYSE: LOW), Mylan Laboratories (NYSE: MYL), Pacific Sunwear of
California (Nasdaq: PSUN) and Target (NYSE: TGT). To see more earnings
analysis, visit http://at.zacks.com/?id=3207. 
Earnings Preview is written by Charles Rotblut, CFA, Senior Market
Analyst for Zacks.com. 
Yawn.... 
This might the best way to describe the last full week of trading
in May. First-quarter earnings season is basically done, outside of
retailers and some late reporters. The economic calendar is fairly
light. And the Friday before Memorial Day tends to be marked by light
volume. 
So what's going to move the markets? Merger news will play a role,
though given the extremely high number of deals already announced so
this year, calling for more mergers to occur is akin to forecasting a
sunny day in June - it's just going to happen. Sentiment remains
bullish. The trend in full-year earnings estimate revisions are
positive, though the number of revisions - both positive and negative
- is going to start falling. At some point the markets are going to
pay more attention to the combination of slow and lumpy economic
growth and rising energy prices, but until that occurs, the Dow's
upward trend is our friend. 
The earnings calendar for the week of May 21 - 25 contains 106
companies, 13 of which are in the S&P 500. Among the more notable
names are Lowe's (NYSE: LOW), Limited (NYSE: LTD) and Target (NYSE:
TGT). 
The economic calendar will stay pretty quiet until Thursday, when
April durable goods orders and new home sales data will be released.
April existing home sales data will be released on Friday. 
Companies That Could Issue Positive Earnings Surprises during the
Week of May 21 - 25 
Brokerage analysts have been raising their forecasts on Mylan
Laboratories (NYSE: MYL). During the past 30 days, two analysts raised
their first-quarter forecasts, pushing the consensus estimate up two
cents to 45 cents per share. The Most Recent Consensus is more bullish
at 52 cents per share. MYL has topped expectations during each of the
past four quarters by an average margin of five cents. Mylan
Laboratories is scheduled to report on Thursday, May 24, 2007. 
Companies That Could Issue Negative Earnings Surprises during the
Week of May 21 - 25 
Pacific Sunwear of California (Nasdaq: PSUN) recently said that
same-store sales fell 16.5% last month. As a result, the company cut
its first-quarter guidance to a loss of four to five cents. All 12
covering brokerage analysts slashed their forecasts in response,
sending the consensus earnings estimate down to a loss of four cents
per share from a profit of seven cents per share. PSUN has missed
expectations twice in the past three quarters. Pacific Sunwear is
scheduled to report on Monday, May 21, after the close of trading. 
Limited Brands (NYSE: LTD) essentially cut its first-quarter
guidance in half following a 1% decrease in April same-store sales and
weaker margins. The company noted particular weakness at its
Victoria's Secret stores. All of the covering brokerage analysts cut
their forecasts during the past week, lowering the consensus estimate
from 24 cents per share to 13 cents per share. LTD's last earnings
report was a penny below expectations. Limited Brands is scheduled to
report on Wednesday, May 23, after the close of trading. 
Want to turn earnings surprises into quick profits? Learn how by
visiting http://at.zacks.com/?id=3206. 
About the Zacks Rank 
Since 1988, 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 +31.9%. 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 132% annually (+5.1%
vs. +11.9%). Thus, the Zacks Rank system allows investors to truly
manage portfolio trading effectively. 
Zacks "Profit from the Pros" e-mail newsletter offers continuous
coverage of the industries and the stocks poised to outperform the
market. Subscribe to this free newsletter today by visiting
http://at.zacks.com/?id=3567. 
About Zacks 
Zacks.com is a property of Zacks Investment Research, Inc., which
was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew
he could find patterns in stock market data that would lead to
superior investment results. Amongst his many accomplishments was the
formation of his proprietary stock picking system; the Zacks Rank,
which continues to outperform the market by nearly a 3 to 1 margin.
The best way to unlock the profitable stock recommendations and market
insights of Zacks Investment Research is through our free daily email
newsletter; Profit from the Pros. In short, it's your steady flow of
Profitable ideas GUARANTEED to be worth your time! Register for your
free subscription to Profit from the Pros by going to
http://at.zacks.com/?id=3568. 
Zacks Investment Research is under common control with affiliated
entities (including a broker-dealer and an investment adviser), which
may engage in transactions involving the foregoing securities for the
clients of such affiliates. 
(a) Zacks Rank performance is the total return (price changes +
dividends) of equal weighted portfolios, consisting of those stocks
with the indicated Zacks Rank, assuming zero transaction costs. These
returns are not the result of a backtest; these are actual returns
since 1988. The stocks in the Zacks Rank portfolios were available to
Zacks clients before the beginning of each month (monthly
rebalancing). Performance results from 1988 through September 2006 are
based on a subset of all Zacks Rank stocks that excludes stocks
covered by only one analyst and ADR's. Starting in October 2006 and
going forward the performance numbers for the Zacks Rank is based upon
the full universe of stocks which is more reflective of the list of
stocks that customers will find on the Zacks websites. 2007 returns
are for the period of Jan 1 - Mar 31, 2007. 
(b)The S&P 500 Index ("S&P 500") is a well-known, unmanaged index
of the prices of 500 large-company common stocks selected by Standard
& Poor's. The S&P 500 includes the reinvestment of all dividends, no
transaction costs, and represents the gross returns before management
fees. 
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. 
CONTACT:
Zacks.com
Charles Rotblut, CFA
Phone: 312-265-9352
Email: pr@zacks.com
Visit: www.Zacks.com