We will get another look at initial third-quarter results with 11 S&P 500 companies reporting. Included in this group are AutoZone (AZO), Bed, Bath & Beyond (BBBY), General Mills (GIS), KB Home (KBH), Lennar (LEN) and Paychex (PAYX). A total of 33 companies are on the calendar.
The Fed will hold a 2-day meeting starting on Tuesday. No change in rates is expected at either this or the November meeting. Traders will be looking for insight about the pace of recovery and updates on the various bailout programs.
In addition to the Fed meeting, the economic calendar features August Leading Indicators and home sales data.
- Monday: August Leading Indicators
- Tuesday: Federal Housing Finance Agency (FHFA) House Price Index
- Wednesday: FOMC rate decision (about 2:10 pm), weekly crude inventories, weekly mortgage applications
- Thursday: August existing home sales, weekly initial jobless claims, weekly natural gas inventories
- Friday: August new home sales, August durable good orders, revised August University of Michigan consumer confidence
The Chicago Fed will host an international banking conference in Chicago. Speaking at the event will be White House economics advisor Christina Romer (Thursday) and Fed Reserve Board Governor Kevin Warsh (Friday).
Another big round of treasury auctions is slated. During a 3-day span, starting on Tuesday, the Treasury Department will offer $43 billion in 2-year notes, $40 billion in 5-year notes and $29 billion in 7-year bonds. Recent auctions have been heavily oversubscribed.
Though old adage of “buy Rosh Hashanah, Sell Yom Kippur” has not really worked in investors’ favor, the bulls continue to remain in control. Therefore, it seems likely that we will hit Dow 10,000 this week. Investors should be aware, however, that this is a fear and greed market run by fast money.
To our Jewish readers, L’Shana Tova.
Companies That Could Issue Positive Earnings Surprises
As I write this, shares of Bed Bath & Beyond (BBBY) are trading higher in response to raised fiscal second-quarter estimates from one brokerage analyst. The change has yet to be factored into the Zacks Consensus Estimate, which currently stands at 47 cents per share. The most accurate estimate is slightly higher at 48 cents per share. The home goods retailer has topped expectations for 2 consecutive quarters and could be a beneficiary of the rebound in housing. Bed, Bath & Beyond is scheduled to report on Wednesday, Sep 23, after the close of trading.
Though used cars did not qualify for the Cash for Clunkers rebates, optimism about CarMax’s (KMX) second-quarter results has been growing. During the past few weeks, 4 brokerage analysts have raised their profit projections. The revisions have pushed the Zacks Consensus Estimate 2 cents higher to 18 cents per share. The most accurate estimate is slightly more bullish at 19 cents per share. KMX beat expectations over the past 2 quarters after previously missing twice. CarMax is scheduled to report on Tuesday, Sep 22, before the start of trading.
Though KB Home (KBH) is projected to have lost 68 cents per share, the actual fiscal third-quarter loss could be less than most analysts forecast. The most accurate estimate is far more bullish, calling for a loss of 61 cents per share, and the homebuilder has topped expectations for 2 consecutive quarters. KB Home is scheduled to report on Friday, Sep 25, before the start of trading.
Research in Motion (RIMM) has topped expectations for 3 consecutive quarters. Ahead of the company’s fiscal second-quarter report, 3 analysts have raised their projections. The changes were not significant enough to move the Zacks Consensus Estimate from its current level of $1 per share, though the most accurate estimate is a penny higher, at $1.01 per share. Research in Motion is scheduled to report on Thursday, Sep 24, after the close of trading.
Companies That Could Issue Negative Earnings Surprises
Texas Industries (TXI) has missed expectations during 3 out of the last 4 quarters. Shareholders should brace themselves for another disappointment with 3 of the 8 covering analysts cutting their fiscal first-quarter estimates within the past few weeks. The revisions have caused the Zacks Consensus Estimate to drop 7 cents to a projected loss of 5 cents per share. Texas Industries is scheduled to report on Thursday, Sep 24, before the start of trading.
Charles Rotblut, CFA is the senior market analyst for Zacks.com.
Earnings Calendar
Here is a list of companies that we have confirmed will report during the week of Sep 21 – Sep 25. Prices are as of Thursday’s, Sep 17, market close.
| Company | Stock | Zacks Estimate |
Year Ago EPS |
Last Qtr Surprise |
Date | Time | Price |
| Lennar Corp -A | LEN | ($0.48) | ($0.56) | 80.7% | 9/21 | BTO | $16.60 |
| Synnex Corp | SNX | $0.61 | $0.66 | 18.8% | 9/21 | AMC | $31.81 |
| Aar Corp | AIR | $0.25 | $0.45 | 10.9% | 9/22 | AMC | $18.39 |
| Carmax Gp (Cc) | KMX | $0.18 | $0.06 | 175.0% | 9/22 | BTO | $18.79 |
| Carnival Corp | CCL | $1.18 | $1.65 | 13.8% | 9/22 | BTO | $32.86 |
| Carnival Plc | CUK | $1.20 | $1.65 | 60.0% | 9/22 | BTO | $34.08 |
| Conagra Foods | CAG | $0.33 | $0.27 | 0.0% | 9/22 | BTO | $22.15 |
| Factset Resh | FDS | $0.73 | $0.68 | 0.0% | 9/22 | BTO | $62.35 |
| Finl Fed Corp | FIF | $0.37 | $0.49 | 2.4% | 9/22 | AMC | $24.08 |
| Fuller(Hb) Co | FUL | $0.36 | $0.35 | 44.0% | 9/22 | AMC | $20.83 |
| Progress Softwa | PRGS | $0.32 | $0.30 | 0.0% | 9/22 | BTO | $23.05 |
| Autozone Inc | AZO | $4.44 | $3.88 | 9.7% | 9/23 | BTO | $147.37 |
| Bed Bath&Beyond | BBBY | $0.47 | $0.46 | 41.7% | 9/23 | AMC | $38.81 |
| Cintas Corp | CTAS | $0.39 | $0.51 | 5.6% | 9/23 | AMC | $29.46 |
| Comtech Telecom | CMTL | $0.18 | $0.61 | 31.8% | 9/23 | AMC | $34.50 |
| Genl Mills | GIS | $1.03 | $0.96 | 6.2% | 9/23 | BTO | $60.06 |
| Paychex Inc | PAYX | $0.34 | $0.41 | (5.9%) | 9/23 | AMC | $29.74 |
| Red Hat Inc | RHT | $0.11 | $0.10 | 20.0% | 9/23 | AMC | $25.46 |
| 3Com Corp | COMS | $0.02 | $0.09 | 150.0% | 9/24 | BTO | $4.71 |
| Amer Greetings | AM | $0.06 | $0.05 | (65.0%) | 9/24 | BTO | $14.62 |
| Analogic Corp | ALOG | $0.23 | $0.55 | (41.7%) | 9/24 | AMC | $37.76 |
| Christopher&Bnk | CBK | ($0.14) | $0.04 | 200.0% | 9/24 | AMC | $7.68 |
| Finish Line-Cla | FINL | $0.21 | $0.24 | (999.0%) | 9/24 | AMC | $9.50 |
| Mccormick & Co | MKC | $0.54 | $0.50 | 2.4% | 9/24 | BTO | $33.87 |
| Neogen Corp | NEOG | $0.26 | $0.25 | 4.6% | 9/24 | BTO | $29.98 |
| Research In Mot | RIMM | $1.00 | $0.86 | 4.3% | 9/24 | AMC | $82.70 |
| Rite Aid Corp | RAD | ($0.15) | ($0.27) | 15.4% | 9/24 | BTO | $2.24 |
| Saba Software | SABA | $0.01 | ($0.04) | 66.7% | 9/24 | AMC | $4.12 |
| Spectrum Contrl | SPEC | $0.18 | $0.18 | 5.9% | 9/24 | AMC | $9.53 |
| Steelcase Inc | SCS | $0.00 | $0.28 | 114.3% | 9/24 | BTO | $7.11 |
| Texas Inds | TXI | ($0.05) | $0.28 | (140.0%) | 9/24 | BTO | $44.95 |
| Tibco Software | TIBX | $0.08 | $0.09 | 28.6% | 9/24 | AMC | $9.13 |
| Vail Resorts | MTN | ($1.10) | ($0.29) | 8.39% | 9/24 | BTO | $34.19 |
| KB Home | KBH | ($0.68) | ($1.87) | 11.8% | 9/25 | BTO | $19.69 |
BTO = Before The Market Open, AMC = After The Market Close
