Earnings Season: Companies Give Mixed Forecasts for 2012

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(List compiled by Alexander Crawford. Data sourced from Finviz.)

Earnings season has hit a rough patch these last few days, but it’s not because of poor Q2 earnings. Certain companies are lowering their forecasts for the rest of the year, and investors are not taking the news very well.

On Wednesday, Target (TGT), Staples (SPLS), and Dell (DELL) all reported Q2 earnings that beat analyst forecasts, but the companies were split with regard to their forecasts. Both Target and Staples gave earnings forecasts that beat estimates, but Dell cut its revenue forecast for next year, sending DELL stock into a 10% nosedive for the day (TGT and SPLS finished higher).


According to Reuters, “Dell forecast fiscal 2012 revenue growth at 1-5 percent, down from 5-9 percent, and said weak government and corporate spending may not hold up in the face of flagging economic growth.”

The forecast also affected rival Hewlett-Packard (HPQ), whose stock fell over 4% on the day, and who is scheduled to release earnings after Thursday’s close.

Royal Bank of Canada lowered Dell’s target price from $20 to $17 but maintained its “sector perform” rating, while Bank of America Merrill Lynch rose its price target from $18 to $18.50 based on low investor sentiment and its cheap valuation, according to Reuters.

Here we list the companies from the S&P 500 that are scheduled to report their earnings and forecasts next week – do you think they’ll be more optimistic?

Use this list as a starting-off point for your own analysis.

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List sorted by date.

1. Medtronic, Inc. (MDT): Medical Appliances & Equipment Industry. Market cap of $34.25B. Earnings to be released on 8/23. The stock has performed poorly over the last month, losing 11.51%.

2. HJ Heinz Co. (HNZ): Food Diversified Industry. Market cap of $16.65B. Earnings to be released on 8/23. The stock has gained 15.46% over the last year.

3. Applied Materials Inc. (AMAT): Semiconductor Equipment & Materials Industry. Market cap of $15.40B. Earnings to be released on 8/24. The stock has gained 4.85% over the last year.

4. Big Lots Inc. (BIG): Discount, Variety Stores Industry. Market cap of $2.42B. Earnings to be released on 8/25. The stock has had a couple of great days, gaining 5.58% over the last week.

5. Hormel Foods Corp. (HRL): Meat Products Industry. Market cap of $7.58B. Earnings to be released on 8/25. The stock is a short squeeze candidate, with a short float at 6.28% (equivalent to 7.11 days of average volume). The stock has gained 33.11% over the last year.

6. Patterson Companies Inc. (PDCO): Medical Equipment Wholesale Industry. Market cap of $3.50B. Earnings to be released on 8/25. The stock has gained 8.51% over the last year.

7. Tiffany & Co. (TIF): Jewelry Stores Industry. Market cap of $8.39B. Earnings to be released on 8/26. The stock has performed poorly over the last month, losing 19.13%.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Investing Ideas , Stocks

Referenced Stocks: AMAT , BIG , HNZ , HRL , MDT , PDCO , TIF

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