This week painted a picture of what to expect from companies in nearly every industry. While this week’s earnings reporting is nearly finished, next week will see a number of others releasing their quarterly numbers. The following is a short preview of five stocks that will be reporting before the bell on Monday morning.
Loews Corporation (NYSE:L):
ValueWalk's Raul Panganiban interviews Kirk Du Plessis, Founder and CEO of Option Alpha, and discuss Option Alpha and his general approach to investing. Q1 2021 hedge fund letters, conferences and more The following is a computer generated transcript and may contain some errors. Interview with Option Alpha's Kirk Du Plessis
Loews Corporation operates primarily as a commercial property and casualty insurance company. The company operates in four segments: CNA Specialty, CNA Commercial, Life & Group Non-Core, and Other. While at a glance that might scream boring, the company last week spiced up its offerings with the announcement of a comic call entitled “Investment Hunter” to flog or tout its stock. As a result, perhaps, Lowes reached a 52 week high yesterday when trading closed. This may prove short lived as most aren’t expecting great things from Loews come Monday.
Analysts are expecting a 15.2 percent drop in earnings from a year ago. The consensus estimate is 84 cents per share, down from earnings of 99 cents per share a year ago. The consensus estimate has taken a bit of a beating down from 85 cents over the past month. For the fiscal year, analysts are expecting earnings of $3.34 per share. For the year, revenue is projected to roll in at $13.29 billion.
Last quarter saw Loews Corporation (NYSE:L) report a loss that broke its three-quarter run of profitability. Despite this, the company’s revenue has risen for two straight quarters. In fourth quarter of the last fiscal year, revenue increased 6.5 percent to $3.71 billion from the year earlier quarter. In the third quarter of the last fiscal year, the figure rose 8.1 percent.
Sturm, Ruger & Company (NYSE:RGR):
With gun control legislation effectively dead in the water (sorry couldn’t resist), numerous analysts are suggesting investing in gun companies as most don’t see their core clientele believing that Obama isn’t still coming for their guns. RGR manufactures a number of weapons and high-capacity magazines that would have fallen on the wrong side of the recently defeated Senate bill. Ruger has been demonized by many but not legislated against by Congress.
The Street and analysts are expecting it to report earnings that are up 31.6 percent from a year ago when it reports its first quarter earnings. The consensus estimate is $1.04 per share, up from earnings of $0.79 per share a year ago. The consensus estimate has increased from $0.95 over the past three months. For the fiscal year, analysts are expecting earnings of $3.80 per share. Revenue is expected to be $131.7 million for the quarter, 17.2 percent higher than the year-earlier total of $112.3 million. For the year, revenue is projected to come in at $513.9 million.
Sporting-goods retailer Cabela’s, which named Ruger its vendor of the year last month, posted double-digit same-store sales due largely to surging firearms and ammunition sales despite recent tragedies.
Newmont Mining Corp (NYSE:NEM):
The precious metals sector has had a rough week, as commodity prices for metals went into a free fall after negative economic news out of China. Gold prices led the way with a drop of over 15 percent from April 11 to April 15. Few more than Newmont are so heavily invested in gold. An investment in Newmont is tantamount to investing in gold bars and burying them in the backyard. We won’t speculate at the future of gold, but would feel remiss if we didn’t mention that the two are so intrinsically tied to one another.
Expectations have dropped sharply for Newmont Mining Corp (NYSE:NEM)’s first quarter results in the month leading up to the company’s earnings announcement next week. The consensus analyst estimate has dropped from $0.95 a share to the current estimate of earnings of $0.80 a share.
The current estimate is down 30.4 percent from the year-ago quarter, when the company reported earnings of $1.15 per share.
Over the past three months, the consensus estimate has fallen from $1.06. For the fiscal year, analysts are projecting earnings of $3.35 per share. After being $2.68 billion a year ago, analysts are expecting revenue to drop 12 percent year-over-year to $2.36 billion for the quarter. For the year, revenue is projected to arrive at $10.04 billion.
Herbalife Ltd. (NYSE:HLF):
Herbalife Ltd. is a global nutrition company that sells weight-management, nutrition, and personal care products intended to support a healthy lifestyle. Herbalife products are sold in over 80 countries through and to a network of independent distributors. Or it’s a Ponzi Scheme. It’s really a matter of what fund magnate you believe. This week in the build up to earnings reporting saw Herbalife elect two Karl Icahn picks to its board of directors.
Analysts’ optimism regarding Herbalife Ltd. (NYSE:HLF) is palpable as it gets ready to report its first quarter results. Analysts are expecting the company to show a profit of $1.07 a share, up from $0.88 a year ago. Over the past three months, the consensus estimate has increased a touch from $1.06. For the fiscal year, analysts are projecting earnings of $4.67 per share. Revenue is projected to be 16.2 percent above the year-earlier total of $964.2 million at $1.12 billion for the quarter. For the year, revenue is projected to come in at $4.62 billion.
The company has seen double-digit year-over-year revenue growth for the past four quarters while enjoying an increase in profits for three consecutive quarters. Nearly 75% of analysts rate Herbalife as a “buy”, a number much stronger than its seven closest competitors.
Icahn Enterprises, L.P. (NASDAQ:IEP):
While a number of Icahn’s larger holdings have reported this week, we are still looking for the big man to do so himself. This week’s Netflix gains will not be reflected in the numbers but nonetheless, regulations are regulations and Icahn Enterprises has to report just like everyone else. While Icahn is certainly unique on to himself, rules are rules.
Analysts are expecting earnings per share of $3.62 when Icahn Enterprises reports on Monday. The trailing twelve month quarter saw earnings of $3.56.
It’s possible that Icahn Enterprises, L.P. (NASDAQ:IEP) may need an activist investor of its own.