10 Stocks to Watch for Earnings

These 10 companies from varied industries like basic materials, technology, telecom and consumer goods and services sector are due to release their quarterly earnings next week. Analysts estimate these stocks have upside in the range of 7% to 63% with 66% of analysts issuing buy ratings, on average. Some stocks also have attractive dividend yields.

The stocks are listed based on their earnings release date. 10. Check Point Software Technologies(CHKP) develops technologies to secure communications and transactions over the Internet. It is involved in developing, marketing and supporting a range of software, as well as combined hardware and software products and services for information technology security. The company is scheduled to report its fourth-quarter fiscal 2011 earnings on Jan. 17. As per the consensus estimates of analysts polled by Bloomberg, CHKP is likely to report sales of $356 million compared to $318.5 million in the same quarter prior fiscal year. Net income is estimated at $173.4 million, or 81 cents per share, as against $156.7 million, or 73 cents per share, in the 2010 fourth quarter. EBITDA for the quarter is seen rising by 20% to $212.8 million. Gross margin is seen expanding to 88.19% from 87.80%. Follow TheStreet on Twitter and become a fan on Facebook.Of the 28 analysts covering the stock, 68% recommend a buy, while the remaining suggest a hold. There are no sell ratings on the stock. Analysts polled by Bloomberg foresee the stock gaining an average 25.5% to $65.69 in the upcoming 12 months.

9. 8x8(EGHT) develops and markets Web-based telecommunications services. The company is scheduled to report its fiscal 2012 third-quarter results on Jan. 18.

As per the consensus estimates of analysts polled by Bloomberg, the company is likely to report net income of $2.4 million on $22.1 million sales, compared to net income of $1.5 on $17.8 million sales recorded in the 2010 third quarter. Meanwhile, 8x8 is likely to report earnings per share of 3 cents, compared to 2 cents recorded in the 2011 third quarter. EBITDA for the quarter is seen rising by 61% to $2.9 million, while operating profit is estimated to increase by 39% to $1.98 million. Of the five analysts covering the stock, 80% recommend a buy. Analysts polled by Bloomberg foresee the stock gaining an average 62.8% to $5.58 in the upcoming 12 months.

8. F5 Networks(FFIV) is a provider of networking, security and data storage software. It sells its products through a range of channels, including distributors, value-added resellers and systems integrators. The company is due to publish its fiscal 2012 first-quarter results on Jan. 18. As per the consensus estimates of analysts polled by Bloomberg, the company is likely to report net income of $81.8 million on sales of $319.06 million, compared to net income of $72.2 on sales of $268.93 million recorded during the 2011 first quarter. F5 Networks is likely to report earnings per share of $1.01 during the quarter, compared to 88 cents in the year-ago quarter. Gross margin is seen expanding to 82.59% from 81.79% earlier. Return on equity is seen increasing to 23.98% from 18.46%, while return on assets is estimated to expand to 18.63% from 13.58% in the prior year quarter.Of the 35 analysts covering the stock, 71% recommend a buy, while the remaining suggest a hold. There are no sell ratings on the stock. Analysts polled by Bloomberg foresee the stock gaining an average 7.4% to $119.00 in the upcoming 12 months.

7. eBay(EBAY) is an online auction and sales platform, operating a range of Web sites. It generates revenue in the form of net transaction revenue, marketing services and other revenue. The company is due to publish its fourth-quarter fiscal 2011 results on Jan. 18. Analysts polled by Bloomberg, foresee the company reporting net income of $744.9 million on sales of $3.32 billion, higher than net income of $683.8 million on $2.49 billion sales recorded during the 2010 fourth quarter. Earnings per share are seen increasing to 57 cents during the quarter from 52 cents. Operating profit and EBITDA during the quarter is estimated to increase by 53% and 37%, respectively. Cash flow per share is seen increasing by 9% to 71 cents. Of the 35 analysts covering the stock, 57% recommend a buy, while 40% suggest a hold. Analysts polled by Bloomberg foresee the stock gaining an average 23.9% to $39.14 in the upcoming 12 months.

6. Skyworks Solutions(SWKS), offers products in cellular handsets and analog semiconductors. The company is due to release its fiscal 2012 first-quarter earnings on Jan. 19. The company is likely to report net income of $94.6 million on sales of $389.56 million, compared to net income of $84.69 million on sales of $335.12 million recorded during the first quarter of fiscal 2011, as per the consensus estimates of analysts polled by Bloomberg. For the quarter, Skyworks is likely to report earnings of 50 cents per share, compared to earnings of 45 cents in the year-ago quarter. Cash flow per share is seen increasing to 51 cents from 36 cents in the first quarter of fiscal 2011. EBITDA and operating profit are seen up 17% and 24%, respectively. Of the 20 analysts covering the stock, 70% recommend a buy, while the remaining suggest a hold. There are no sell ratings on the stock. Analysts polled by Bloomberg foresee the stock gaining an average 56.7% to $28.17 in the upcoming 12 months.

5. PPG Industries(PPG) is a producer and supplier of protective and decorative coatings, optical and specialty materials, commodity chemicals, and glass. The company is due to release its 2011 fourth-quarter results on Jan. 19. As per the consensus estimate of analysts polled by Bloomberg, PPG is seen recording sales of $3.50 billion for the 2011 fourth quarter, compared to $3.38 billion in the same quarter prior fiscal. Net income for the quarter is estimated at $198.6 million, or $1.26 per share. EBITDA and operating profit are seen rising by 9% and 13%, respectively. Gross margin is expected up 39.03% from 34.77% earlier. Currently, the company is trading at a dividend yield of 2.5%. Dividend per share for the quarter is estimated to increase to 57 cents from 55 cents in the prior fiscal year quarter. Also, cash flow per share is pegged at $2.47. Of the 16 analysts covering the stock, 44% recommend a buy, while the rest suggest a hold. There are no sell ratings on the stock. Analysts polled by Bloomberg foresee the stock gaining an average 7.4% to $94.55 in the upcoming 12 months.

4. Johnson Controls(JCI) is a provider of automotive interiors. Through subsidiaries it also provides technical services, energy management consulting and operations of real estate portfolios for the non-residential buildings market. The company is due to release its fiscal 2012 first quarter results on Jan. 19. As per analysts' consensus estimates polled by Bloomberg, Johnson Controls is likely to report net income of $429.8 million on sales of $10.5 billion, compared to net income of $347 million on sales of $9.54 billion recorded during the 2011 first quarter. Johnson is likely to report earnings of 62 cents per share, compared to earnings of 55 cents per share earlier. Gross margin is seen expanding to 15.29% from 14.83% earlier. Currently, the company is trading at a dividend yield of 1.8%. Dividend per share is estimated to come in at 16 cents. Meanwhile, cash flow per share is foreseen to increase to 80 cents from 16 cents recorded in the first quarter fiscal 2011. Of the 31 analysts covering the stock, 74% recommend a buy, while 23% suggest a hold. Analysts polled by Bloomberg foresee the stock gaining an average 18.9% to $41.74 in the upcoming 12 months.

3. Google(GOOG) has its major focus on improving the way people connect with information. It's major revenue source is online advertising. The company is scheduled to release its 2011 fourth-quarter results on Jan. 19. As per the consensus estimates of analysts polled by Bloomberg, the company is likely to report net income of $3.45 billion on sales of $8.4 billion, compared to net income of $2.85 billion on sales of $6.4 billion recorded in the 2010 fourth quarter. For the quarter, Google is likely to report earnings per share of $10.48 per share, up from $8.75 in the earlier quarter. Operating profit and EBITDA is seen increasing by 23% and 35%, respectively. Gross margin is seen expanding to 85.86% from 65.09%. Additionally, cash flow per share is seen rising to $12.24 from $11.02. Of the 41 analysts covering the stock, 85% recommend a buy, while the remaining suggest a hold. There are no sell ratings on the stock. Analysts polled by Bloomberg foresee the stock gaining an average 16.5% to $733.47 in the upcoming 12 months.

2. International Business Machines(IBM), a global information technology company with products and services in software, hardware and financing. The company is due to release its fourth-quarter fiscal 2011 results on Jan 19. As per the consensus estimates of analysts polled by Bloomberg, IBM is likely to report net income of $5.5 billion on sales of $29.74 billion, compared to net income of $5.26 billion on sales of $29.02 billion recorded earlier. Earnings per share are seen rising to $4.62 from $4.18 earlier. EBITDA and operating profit are seen rising by 7% and 8%, respectively during the quarter. Currently, the company is trading at a dividend yield of 1.6%. Dividend per share is seen rising to 74 cents from 65 cents earlier. Cash flow per share is seen coming in at $5.20 for the quarter. Of the 31 analysts covering the stock, 48% recommend a buy, while 48% suggest a hold. Analysts polled by Bloomberg foresee the stock gaining an average 8.1% to $195.11 in the upcoming 12 months.

1. Microsoft(MSFT) develops, licenses and supports a range of software products and services. It is due to release its second-quarter fiscal 2012 results on Jan. 19. As per the consensus estimates of analysts polled by Bloomberg, the company is likely to report net income of $6.55 billion, or 77 cents per share. Sales are seen rising to $20.95 billion from $19.95 billion in the year-ago quarter. EBITDA for the quarter is seen increasing to $8.85 billion from $8.83 billion. Currently, the company is trading at a dividend yield of 2.4%. Dividend per share is estimated to increase to 20 cents from 16 cents paid in the second quarter of fiscal 2011. Cash flow per share is seen increasing to 74 cents during the quarter from 49 cents earlier. Of the 40 analysts covering the stock, 65% recommend a buy, while 33% suggest a hold. Analysts polled by Bloomberg foresee the stock gaining an average 9.6% to $30.68 in the upcoming 12 months. >To order reprints of this article, click here: Reprints

No comments:

Post a Comment