Joined Nov 11, 2007
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A Heads Up on Some Stocks Going Into Earnings Season

“After the worst U.S. winter in decades, scores of companies will show plenty of quarter-over-quarter sales and earnings improvements starting this week.

But looking beyond the weather will be of more interest, because many companies that suffered the worst earnings declines in the first quarter are also expected to show hugeyear-over-year earnings growth for the second quarter.

To highlight those, we began with the S&P 1500 Composite Index, which includes the components of the S&P 500 SPX -0.76% , the S&P MidCap 400 MID -1.02%  and the S&P SmallCap 600 SML -1.28% . In order to show which companies posted the worst earnings decreases during the first quarter, we limited the list to stocks with positive earnings per share for both periods.

So here are the 10 profitable S&P 1500 companies showing the worst year-over-year EPS declines for the first quarter:

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Investors might have expected to see a list of retailers, because shoppers stayed at home during the frigid temperatures. But the list is varied, in part, because we focused on EPS. Many of these companies reported lousy results that had nothing to do with the weather.

Here’s where it gets interesting: Seven of those stocks are expected to show year-over-year EPS growth for the second quarter, based on consensus estimates among analysts polled by FactSet. Six may report double-digit increases in EPS:

Here’s more on all 10 companies, beginning with the ones showing the largest year-over-year EPS declines for the most recently reported quarter….”

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