From William Trent, CFA of Stock Market Beat
The Economic Calendar is relatively light this week. Potential market movers include:
- Wednesday’s Durable Goods report (consensus 2.2%)
- Friday’s advance report on Q1 GDP (consensus 1.8%)
Earnings are another story. We are in the peak part of earnings season this week. A few of the stocks we follow:
Monday
- Altera (ALTR) – valuation is rich but looks set up to beat on earnings.
- Texas Instruments (TXN – Annual Report) – March and June quarters have both had significant downward revisions. Will day of reckoning be forestalled?
Tuesday
- AU Optronics (AUO) – Forecasting losses, but panel business may have bottomed out.
- CDW Corporation (CDWC) – 14.6% sales growth doable given Berbee acquisition.
- CH Robinson (CHRW) – Could beat.
- CSG Systems (CSGS) – earnings should be a piece of cake. If private equity buyers don’t take them out they’ll do it themselves the slow way.
- Lexmark (LXK) – Estimates are doable but we’re always waiting for this company to trip up.
- ST Microelectronics (STM) – Doing the right thing. Hopefully will pay off.
- AT&T (T) – Estimates and stock both keep rising.
Wednesday
- Apple (AAPL) – Hunch: company will blow away earnings, issue horrible guidance and blame it on iPhone build.
- Arkansas Best (ABFS) – We’re staying away from truckers who own trucks.
- Corning (GLW) – current quarter ok, guidance at risk.
- LSI Logic (LSI) – May blame their poor guidance on Agere.
- Maxim (MXIM) – Company is out of gas but focus will be on whether they might sell out.
- Qualcomm (QCOM) – Nokia Nokia Blah Blah Nokia ad nauseam (excerpt from pending conference call transcript)
- Silicon Laboratories SLAB – Sold wireless just when biggest customer began to recover. What other surprises may be in store?
- UPS (UPS) – They shouldn’t have trouble beating the estimates (but that doesn’t mean they won’t).
- Xilinx (XLNX) – Altera with more risk to the earnings target.
Thursday
- Curtiss Wright (CW) – PPI data suggests they should beat big, but it suggested the same last quarter.
- KLA Tencor (KLAC) – Another place we’d rather not be right now.
- Microsoft (MSFT – Annual Report) – Vista is still not living up to expectations.
- MEMC Electronics (WFR) – Earnings surprises have been getting bigger each quarter. Now that we’ve put a semiconductor name on our Large Cap Watch List it will probably stop just to spite us.
- YRC Worldwide (YRCW) – See Arkansas Best.
- Sandisk (SNDK – Annual Report) – Will take more than one quarter to clear the channel inventory.
Friday
- Dassault Systemes (DASTY) – We like Ansys (ANSS) better but don’t see why this name wouldn’t beat.
- Ceradyne (CRDN) – Earnings could be anywhere and don’t really matter.
Enjoy!
Disclosure: Author has a short position in Ceradyne put options at time of publication.
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