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

Laboratories, Pacific Sunwear of California and Target 
CHICAGO--(BUSINESS WIRE)--May 21, 2007 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 
Earnings Preview is written by Charles Rotblut, CFA, Senior Market
Analyst for 
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
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:
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
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Charles Rotblut, CFA
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