Earnings Preview: JOY, LGF, PSX, TFM, CIEN

Published on Tuesday, 29 May 2012 18:56 Written by Todd Shriber

While the market remains locked in a cell that only Europe and its worsening sovereign debt crisis holds the key to, investors might be apt to forget that there are few companies left to report earnings this week. And while this week is short, some of the names slated to step into the earnings confessional are worthy of the "marquee" designation. With that, let’s have a look at some of this week’s most important earnings reports.

Joy Global (NYSE: JOY):

The mining equipment maker has seen its shares savagely beaten as risk on has turned to risk off. Shares of Joy Global have fallen 13% in the past month and are testing support at $60. Wisconsin-based Joy Global is expected to post a second-quarter profit of $1.95 a share up from $1.52 a share a year earlier. Second-quarter revenues are expected to total $1.4 billion, an almost 35% year-over-year increase, but the real story here will be guidance.

Any weakness on that front will surely give eager bears an excuse to punish this already vulnerable stock. Joy Global reports before the bell Thursday.

Lion Gate Entertainment (NYSE: LGF):

The studio behind The Hunger Games and Mad Men, has seen much of its pre-Hunger Games air come out of its shares as the stock is down about 20% since March. The company is expected to post a first-quarter profit of 26 cents per share on revenues of $627.7 million. That compares to 33 cents per share and $376.9 million in the same period of last year. The estimate has risen from 23 cents over the past two months. Lions Gate reports on Wednesday.

Phillips66 (NYSE: PSX):

In its first reported quarter since being spun-off by ConocoPhillips (NYSE: COP) refiner Phillips66 has said it’s looking to move away from the gasoline business due to slack demand. The company said its refining business is third in the U.S. behind Exxon Mobil (NYSE: XOM) and Marathon Petroleum (NYSE: MPC) in terms of return on capital employed. The company, already a member of the S&P 500 is expected to show a quarterly profit of $1.01 per share.

The Fresh Market (NASDAQ: TFM):

Fresh Market reports Wednesday before the bell and analysts are looking for a profit of $1.30 per share, a rise of 21.5% from a year earlier. Revenue is expected to jump 17.3% to $310.3 million. Fresh Market has reported double-digit revenue increases in four consecutive quarters.

Ciena (NASDAQ: CIEN):

Ciena reports Thursday and analysts are expecting a loss of 33 cents per share on revenue of $447.4 million, a 7% increase from a year earlier. In its fiscal first quarter, Ciena narrowed its loss, but revenue fell and the numbers missed analysts’ estimates.