April 29th, 2007
The Week Ahead (29 April 2007)
The Economic Calendar has three potentially important events this week:
- Personal Income and Outlays on Monday (consensus 0.6% income, 0.5% spending)
- ISM Manufacturing on Tuesday (consensus 51)
- The Employment Situation on Friday (consensus 100,000 jobs added, 4.5% unemployment)
Earnings season continues in full force.
Monday
- Verizon (VZ - Annual Report) - possible upside to sales
Tuesday
- Plantronics (PLT) - anyone’s guess, though our long position gives away our own guess
Wednesday
- Cognizant (CTSH) - one of these days the growth will hit a wall, but probably not this day
- Garmin (GRMN - Annual Report) - shouldn’t need a big surprise to move the stock from this level
- Itron (ITRI) - risk to estimates in both directions due to Actaris acquisition
- Sprint (S - Annual Report) - the worst may be over here
- Symantec (SYMC) - Based on MFE and VDSL should have a big quarter
Thursday
- Ansys (ANSS) - Dassault beat big, and we like Ansys better
- QLogic (QLGC) - too risky for our tastes
- Starbucks (SBUX) - probably no surprise, but risk probably to the downside when they are making this kind of move
Disclosure: Long PLT and ITRI
Disclosure: Author is long Starbucks (SBUX) at time of publication.
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hey man, i really enjoy site! i see you’re part of IBN too.
keep up the great posts!
Thanks - Sorry for letting the IBN links get stale. Probably won’t get a chance to update til after earnings season, though.
[…] The Week Ahead (29 April 2007) […]
[…] When we previewed earnings for Cognizant Techonolgy Solutions (CTSH) we said “one of these days the growth will hit a wall, but probably not this day.” Today the company reported earnings: Revenue for the first quarter increased to $460.3 million, up 8% from $424.4 million in the fourth quarter of 2006, and up 61% from $285.5 million in the first quarter of 2006. GAAP net income was $75.4 million, or $0.50 per diluted share, compared to $47.2 million, or $0.32 per diluted share, in the first quarter of 2006. GAAP operating margin for the quarter was 18.2%. Excluding stock based compensation expense of $7.4 million, non-GAAP operating margin was 19.8%, in-line with the Company’s targeted 19 to 20% range. […]
[…] GRMN: Garmin Moves on Small Surprise Our earnings preview for Garmin (GRMN - Annual Report) said it “shouldn’t need a big surprise to move the stock from this level.” Today the company reported earnings: First Quarter 2007 Financial highlights: – Total revenue of $492 million, up 53% from $322 million in first quarter 2006 – Earnings per share increased 60% to $0.64 from $0.40 in first quarter 2006; excluding foreign exchange, EPS increased 37% to $0.59 from $0.43 in the same quarter in 2006. […]
[…] Our earnings preview of Starbucks (SBUX) said “probably no surprise, but risk probably to the downside when they are making this kind of move.” Today the company reported earnings: Fiscal Second Quarter 2007 Highlights:* Consolidated net revenues of $2.3 billion, an increase of 20 percent * Net earnings of $151 million, an increase of 18 percent * Net earnings per share of $0.19, compared to $0.16 per share, an increase of 19 percent * 560 retail store openings * Comparable store sales growth of four percent, versus most difficult quarterly comparison this year […]
[…] As we noted in our preview, the consensus among economists was to add 100,000 jobs. Initial media reports are depicting the numbers as weak, with which interpretation we concur. […]