Earnings Preview: SJM, LULU, ULTA, PNY, ABM
Published on Monday, 04 June 2012 22:16 Written by Todd Shriber
Marquee earnings reports have all but dried up, but this week does have three S&P 500 constituents delivering their latest quarterly results. For better or worse, U.S. stocks and many other global financial markets remain hamstrung by Europe’s dark clouds and the spate of weak economic data flowing from the U.S. and China. Translation: None of the companies reporting this week are likely to have a profound impact on the broader market’s whims.
With that, let’s have a look at some of the companies that could see stock-specific action on the back of their earnings reports this week.
JM Smucker (NYSE: SJM):
The jelly and preserves maker is one of the three S&P 500 companies reporting this week. Ohio-based JM Smucker is expected to report a fiscal fourth-quarter profit of 99 cents a share, which is inline with the year-earlier period. Smucker’s dividend yield of 2.55% is below that of other big-name food companies such as Kraft (NYSE: KFT) and General Mills (NYSE: GIS) and the stock is a bit more volatile than the typical food company. Earnings miss and/or troubling outlook could send this already vulnerable stock to support at $70.
lululemon Athletica (NASDAQ: LULU):
Apparel maker lululemon reports its fiscal first-quarter results on Thursday June 7 and analysts are expecting a profit of 30 cents on revenue of $270.57 million. This is another vulnerable name because lululemon isn’t any old apparel firm. It makes pricy athletic apparel, a highly discretionary product line that some consumers may be apt to cut back on when feeling jittery about the health of the economy. This is a high-flying growth stock that has acted the part on the way up and on the way down. In the past month, shares of lululemon have lost almost 14%.
Ulta Salon, Cosmetics & Fragrance (NASDAQ: ULTA):
Ulta is expected to report a fiscal first-quarter profit of 53 cents a share when it delivers results on Tuesday afternoon. Analysts expect revenue of $473.9. Both numbers would be substantial increases from the year-earlier period. Ulta’s revenue has increased for three straight quarters. This is another discretionary growth name, bu the stock has held up relatively well in the past month, losing just 5%.
Piedmont Natural Gas (NYSE: PNY):
The natural gas utility reports its fiscal second-quarter results on Friday June 8. Analysts are expecting a profit of 71 cents on $408.81 million in revenue. In an environment where investors are loving low beta dividend payers, Piedmont and its 4% yield should be attractive to investors assuming there’s nothing alarming about the earnings or outlook.
ABM Industries (NYSE: ABM):
ABM Industries, the New York-based provider of building and facilities services, reports its fiscal second-quarter results after the close Wednesday June 8. Analysts are expecting a profit of 30 cents a share on revenue of $1.09 billion. Not the sexiest stock around ABM’s yield of 2.8% is fair in this yield-starved environment and the company has consistently upped the payout in recent years.