The Week Ahead: Assessing the Earnings Scorecard

 | Jul 27, 2014 | 8:00 PM EDT  | Comments
  • Comment
  • Print Print
  • Print
Stock quotes in this article:

arii

,

trn

,

pcar

,

cmi

,

etn

,

aixg

,

veco

,

cree

,

krft

,

wfm

,

cag

,

k

,

hlf

,

twc

,

twtr

,

FB

,

s

,

tmus

,

cl

,

clx

,

pg

Two weeks ago, we had five days filled with economic data and a modest number of earnings reports. Last week offered up modest economic data and a ton of corporate earnings. Well, this week, both gun barrels of information are blazing. So, even if the body is saying it would rather be on the beach, the investing mind must be kept active and sharp.

Before we run down the key items to watch in the week ahead, let's review the S&P 500 earnings scorecard for 230 companies that have already reported. According to FactSet, of those firms, 76% issued earnings ahead of estimates, and 67% reported sales above expectations.

Looking at the data from an industry perspective, we find the highest percentage of earnings beats in the healthcare, materials and information-technology groups. Telecom services and consumer staples suffered the worst ratios. We'll hear more from those two lagging sectors this week when Sprint (S), T-Mobile U.S. (TMUS), Colgate Palmolive (CL), Clorox (CLX) and Procter & Gamble (PG) issue their respective quarterly results.

One other figure to watch is the ratio of positive to negative earnings guidance. Thus far, 47 companies in the S&P have issued earnings-per-share forecasts for the third quarter. Of those companies, 68% have put out negative guidance -- meaning they project numbers that are lower than the average Wall Street estimate. This is only slightly higher than the five-year average of 64%. That said, a little more than half of the S&P has yet to report this season, so this ratio -- and what it means for back-half expectations -- bears watching.

Looking ahead, the data will be coming fast and furious in the next five sessions, with a crescendo set for late in the week. More than 1,000 webcasts are due, and Friday marks the beginning of August which means we'll also see several views on July job creation. Capping the week will be a hefty combination of purchasing managers indices from across the globe, along with the July employment report. At this point I think it's fair to say the "official" jobs number will be what it is, much like the July figure. But the real focus will be on the mix of jobs and the ratio of part-time to full-time jobs.

Friday will also bring the latest read on auto and truck sales, and June personal income and spending data, the latter of which constitute a somewhat rear-view-mirror view on the consumer. Given recent food and energy prices, I would not be shocked to see a drop in disposable income. That, in turn, would tie with commentary from several restaurant companies and weak traffic data from the National Restaurant Association.

As usual, a more detailed listing of this week's data can be found below.

As for the enormous number of companies will be reporting their quarterly results, here is the short list of reports that I'll be watching closely, given positions in the Thematic Growth Portfolio that I manage:

  • American Railcar (ARII). This means listening to Trinity Industries (TRN) results as well.
  • Paccar (PCAR), the heavy-truck manufacturer. Of course, this means additionally paying attention to commentary from both Cummins (CMI) and Eaton (ETN).
  • Aixtron (AIXG), Veeco Instruments (VECO). I will be looking for capacity commentary from both, given the portfolio's exposure to LED company Cree (CREE),
  • Kraft Foods (KRFT). I'll be zeroing in on commentary from listening for insights into the stickiness of recent price increases.
  • Whole Foods (WFM). The company's traffic data will prove helpful for positions in ConAgra (CAG) and Kellogg (K), the latter of which is also due to report its results this week.

Other companies that are likely to be featured in the spotlight this week are Herbalife (HLF), Time Warner Cable (TWC). Twitter (TWTR) is also bound to be in focus following last week's Facebook's (FB) results.

That's a quick snapshot, and of course there is a more comprehensive breakdown below.

Be sure to check back midweek for The Corner of Wall & Main, in which Lenore Hawkins and I will dish on the first half of the trading week and other key matters and thoughts -- as well as how to play it all. Be sure to join us again at the end of the week for The Friday Wrap, in which we'll put the whole week in context for you.

_________________

Economic Calendar

Monday, July 28

  • Pending-Homes Sales (June)

____

Tuesday, July 29

  • Case-Shiller 20-City Index (May)
  • Consumer Confidence (July)

____

Wednesday, July 30

  • Mortgage Bankers Association (MBA) Mortgage Index (Weekly)
  • ADP Employment Change Report (July)
  • Gross Domestic Product -- Advance (Second Quarter)
  • Crude-Oil Inventories (Weekly)
  • Federal Open Market Committee (FOMC) Interest-Rate Decision (July)

____

Thursday, July 31

  • Challenger Job-Cuts Report (July)
  • Initial and Continuing Jobless Claims (Weekly)
  • Employment Cost Index (2Q 2014)
  • Chicago Purchasing Managers Index (PMI) (July)
  • Natural Gas Inventories (Weekly)

____

Friday, August 1

  • HSBC China Manufacturing PMI (July)
  • Markit Eurozone Manufacturing PMI (July)
  • Markit U.S. Manufacturing PMI (July)
  • J.P. Morgan Global Manufacturing PMI (July)
  • Employment Report (July)
  • Personal Income & Spending (June)
  • Personal Consumption Expenditures (PCE) (June)
  • Michigan Sentiment Index – Final (July)
  • Institute for Supply Management (ISM) Manufacturing Index (July)
  • Construction Spending (June)
  • Auto & Truck Sales (July)

________________

Earnings Calendar

Monday, July 28

  • Accuride Corp. (ACW)
  • Advent Software (ADVS)
  • Armstrong World (AWI)
  • Cummins Inc. (CMI)
  • Denny's Corp. (DENN)
  • Education Realty (EDR)
  • Greenhill & Co. (GHL)
  • Heartland Financial (HTLF)
  • MicroStrategy (MSTR)
  • Peregrine Semiconductor (PSMI)
  • Roper Industries (ROP)
  • Sohu.com (SOHU)
  • Tyson Foods (TSN)

____

Tuesday, July 29

  • Arch Coal (ACI)
  • AGCO Corp. (AGCO)
  • Aixtron AG (AIXG)
  • AK Steel (AKS)
  • Amgen Inc. (AMGN)
  • American Express (AXP)
  • Big 5 Sporting (BGFV)
  • Buffalo Wild Wings (BWLD)
  • Crane Co. (CR)
  • Cynosure Inc. (CYNA)
  • Deutsche Bank AG (DB)
  • DineEquity (DIN)
  • Digital Realty Trust (DLR)
  • DreamWorks Animation (DWA)
  • Eaton Corp. (ETN)
  • Fresh Del Monte (FDP)
  • Corning (GLW)
  • GNC Holdings (GNC)
  • Global Payments (GPN)
  • GrafTech International (GTI)
  • Herbalife Ltd. (HLF)
  • Internap Network (INPA)
  • International Paper (IP)
  • Illinois Tool Works (ITW)
  • Jacobs Engineering (JEC)
  • Masco (MAS)
  • MDC Holdings (MDC)
  • Medidata Solutions (MDSO)
  • Merck & Co. (MRK)
  • Martha Stewart Living (MSO)
  • Norwegian Cruises (NCLH)
  • Nielsen NV (NLSN)
  • NutriSystem (NTRI)
  • New York Times (NYT)
  • Paccar Inc. (PCAR)
  • Pfizer (PFE)
  • Reynolds American (RAI)
  • Ruby Tuesday (RT)
  • Spirit Airlines (SAVE)
  • Sirius XM Holdings (SIRI)
    Twitter Inc. (TWTR)
  • Waste Management (WM)
  • Xylem Inc. (XYL)

____

Wednesday, July 30

  • ACCO Brands (ACCO)
  • ADT Corp. (ADT)
  • Aflac Inc. (AFL)
  • Akami Technology (AKAM)
  • AMC Entertainment (AMC)
  • Ameriprise Financial (AMP)
  • Cardtronics (CATM)
  • Cavium (CAVM)
  • Digital River (DRIV)
  • eHealth (EHTH)
  • Equinix Inc. (EQIX)
  • Express Scripts (ESRX)
  • Fortune Brands Home & Security (FBHS)
  • Genworth Financial (GNW)
  • Garmin Ltd. (GRMN)
  • Goodyear Tire (GT)
  • Hologic Inc. (HOLX)
  • Humana Inc. (HUM)
  • Ingredion Inc. (INGR)
  • Kimco Realty (KIM)
  • Kraft Foods (KRFT)
  • Lumber Liquidators (LL)
  • LAM Research (LRCX)
  • Marriott International (MAR)
  • Mobile Iron (MOBL)
  • Panera Bread (PNRA)
  • Pantry Inc. (PTRY)
  • Regal Beloit (RBC)
  • Revlon Inc. (REV)
  • Rogers Corp. (ROG)
  • Rovi Corp. (ROVI)
  • Sprint Corp. (S)
  • Boston Beer (SAM)
  • Sealed Air Corp. (SEE)
  • Shutterfly (SFLY)
  • Sodastream International (SODA)
  • Stamps.com (STMP)
  • Symantec (SYMC)
  • Trinity Industries (TRN)
  • Veeco Instruments (VECO)
  • VistaPrint (VPRT)
  • Whole Foods Market (WFM)
  • Wabash National (WNC)
  • Watts Water (WTS)
  • Weight Watchers (WTW)
  • Yelp Inc. (YELP)

____

Thursday, July 31

  • Barrick Gold (ABX)
  • American Railcar (ARII)
  • Yamana Gold (AUY)
  • Avon Products (AVP)
  • Bunge Ltd. (BG)
  • Ball Corp. (BLL)
  • Anheuser Busch (BUD)
  • BorgWarner (BWA)
  • Beazer Homes (BZH)
  • CEVA Inc. (CEVA)
  • Cigna Corp. (CI)
  • Colgate Palmolive (CL)
  • Cott Corp. (COT)
  • 3D Systems (DDD)
  • Delphi Automotive (DLPH)
  • DirecTV (DTV)
  • Enterprise Products (EPD)
  • Expedia (EXPE)
  • Comfort Systems (FIX)
  • Fluor Corp. (FLR)
  • Gildan Activewear (GIL)
  • GATX Corp. (GMT)
  • GoPro Inc. (GPRO)
  • Hyatt Hotels (H)
  • hhgregg Inc. (HGG)
  • Immersion Corp. (IMMR)
  • Imperva Inc. (IMPV)
  • ITT Corp. (ITT)
  • Kellogg Inc. (K)
  • KEYW Holdings (KEYW)
  • Kennametal Inc. (KMT)
  • Libbey Inc. (LBY)
  • Legg Mason (LM)
  • Live Nation Entertainment (LYV)
  • MasterCard Inc. (MA)
  • McKesson Corp. (MCK)
  • Mosaic Co. (MOS)
  • Meritor Inc. (MTOR)
  • Natural Grocers (NGVC)
  • Newell Rubbermaid (NWL)
  • Outerwall Inc. (OUTR)
  • PG&E Corp. (PCG)
  • Pentair PLC. (PNR)
  • Pilgrims Pride (PPC)
  • Royal Dutch Shell (RDS.A)
  • Sturm Ruger & Co. (RGR)
  • Ryland Group (RYL)
  • Steve Madden (SHOO)
  • Skullcandy Inc. (SKUL)
  • Senomyx Inc. (SNMX)
  • Strayer Education (STRA)
  • Synaptics (SYNA)
  • Teva Pharmaceuticals (TEVA)
  • Timken Co. (TKR)
  • T-Mobile U.S. (TMUS)
  • Telenav Inc. (TNAV)
  • Tesla Motors (TSLA)
  • Time Warner Cable (TWC)
  • Western Union (WU)
  • World Wrestling (WWE)
  • Exxon Mobil (XOM)

____

Friday, August 1

  • Arbor Realty Trust (ABR)
  • Allete Inc. (ALE)
  • Burger King Worldwide (BKW)
  • CBOE Holdings (CBOE)
  • Church & Dwight (CHD)
  • Clorox (CLX)
  • Chevron Corp. (CVX)
  • Granite Construction (GVA)
  • Genesee & Wyoming (GWR)
  • Hilton Worldwide (HLT)
  • Heartland Payments (HPY)
  • Kodiak Oil & Gas (KOG)
  • Moneygram International (MGI)
  • Mohawk Industries (MHK)
  • Procter & Gamble (PG)
  • Ruth's Hospitality (RUTH)
  • Standard Pacific (SPF)
  • Tesco Corp. (TESO)
  • Weyerhaeuser Co. (WY)

Columnist Conversations

Ford is working on its third straight gain following two days of steep loses to start this week. At this...
Market is holding on for gains for now but think Doug Kass is right and could see some decent profit taking by...
I have a full blown article surrounding the U.S. Retail Sector coming out on soon, but for now let's just lo...
The dividend action is pretty quiet at the moment, but I wanted to point out for those generating income with ...

BEST IDEAS

REAL MONEY'S BEST IDEAS

Columnist Tweets

BROKERAGE PARTNERS

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.


TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.