For Immediate Release
Chicago, IL – March 15, 2010 – Zacks.com releases the list of companies likely to issue earnings surprises. This week’s list includes DSW Inc (DSW), Perry Ellis (PERY), Cintas (CTAS) and Palm (PALM). To see more earnings analysis, visit http://at.zacks.com/?id=3207.
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Economic Data in Focus Next Week
Historically, the best indicators of firms likely to report positive surprises are a recent history of positive surprises and rising estimates going into the report. The Zacks Rank is also a good indicator of potential surprises. While normally firms that report better-than-expected earnings rise in reaction, that has not been the case so far this quarter. While pickings are getting slim, some of the companies that have these characteristics include:
DSW Inc (DSW) is expected to report EPS of 0.31, up from a low of $0.14 per share a year ago (putting its “best foot” forward?). Last time out, DSW posted a positive surprise of 30.4%, and over the last month the mean estimate for its fourth quarter earnings is up 2.2%. DSW has a Zacks #1 Rank.
Perry Ellis (PERY) is expected to report EPS of $0.59, up from a loss of $0.34 a year ago. In the 3Q, PERY posted a positive surprise of 29.2% and over the last month, the consensus estimate for its 4Q earnings is up 4.0%. PERY is a Zacks #1 Ranked stock.
Cintas (CTAS) is expected to post EPS of $0.30 a share, versus $0.47 a year ago. Last time they reported 7.1% below expectations. For this Zacks #4 Ranked stock, analysts have cut the estimates for this quarter slightly over the last month by 21.9%.
Palm (PALM) is expected to lose $0.41 a share this quarter, down from the $0.88 they lost a year ago. They reported in line with expectations last time out, but analysts have cut the estimate for this quarter by 70.4% over the last month. The stock holds a Zacks #4 Rank.
Dirk Van Dijk, CFA, is the Chief Equity Strategist for Zacks.com.
About the Zacks Rank
Since 1988, the Zacks Rank has proven that “Earnings estimate revisions are the most powerful force impacting stock prices.” Since inception in 1988, #1 Rank Stocks have generated an average annual return of +26%. During the 2000-2002 bear market, Zacks #1 Rank stocks gained +43.8%, while the S&P 500 tumbled -37.6%. Also note that the Zacks Rank system has just as many Strong Sell recommendations (Rank #5) as Strong Buy recommendations (Rank #1). Since 1988, Zacks Rank #5 stocks have underperformed the S&P 500 by 111% annually (-0.8% versus +8%). Thus, the Zacks Rank system allows investors to truly manage portfolio trading effectively.
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Contact: Dirk Van Dijk, CFA