24/7 Wall St. » TSN

Earnings Previews For Friday (BEAM, CLX, EL, SPG, TSN)

Administrator — Thu, 02 Feb 2012 17:44:26 +0000

We have noted that this week should be the climax of the companies reporting earnings which have a calendar or quarterly year-end in December. Still, some reports are still coming this week and next week and we have a few earnings that investors and speculators will want to watch out for on Friday.

We are tracking and previewing earnings reports due in shares of Beam Inc. (NYSE: BEAM); Clorox Co. (NYSE: CLX); Estee Lauder Companies (NYSE: EL); Simon Property Group Inc. (NYSE: SPG); and Tyson Foods Inc. (NYSE: TSN). We have included estimates from Thomson Reuters and added color in on each.

Beam Inc. (NYSE: BEAM) is set to report Friday morning and estimates are $0.67 EPS and $653.36 million in sales. This one has been a bit difficult for many investors to predict since the reorganization last year but shares have recovered some 15% since October.

Clorox Co. (NYSE: CLX) is due to report and estimates are $0.69 EPS and $1.2 billion in sales. For just how relevant this one is, it is not even 10% of the size of P&G when it comes to revenues. This one remains expensive in valuation and its dividend yield is about 3.3%.

Estee Lauder Companies (NYSE: EL) is still close to a 52-week high, so investors need to watch closely here. Estimates are $1.01 EPS and $2.75 billion in sales. That is a lot of beauty products. Unfortunately, this one has a dividend yield of less than 1%.

Simon Property Group Inc. (NYSE: SPG) Is expected to report $1.90 EPS on $1.16 billion in sales. Keep in mind that REITs are FFO rather than EPS. The stock trades at a premium to peers for its premium shopping mall properties. The dividend yield here is only about 2.6% and shares hit a new year and all-time high on Thursday.

Tyson Foods Inc. (NYSE: TSN) is expected to report $0.34 EPS on $8.3 billion in sales. Next quarter estimates are $0.45 EPS and $8.5 billion in sales. At $18.60, its 52-week range is $15.60 to $21.06 and its dividend yield does not even hit 1% currently.

JON C. OGG

Filed under: 24/7 Wall St. Wire, Calendar, Consumer Goods, Earnings Tagged: BEAM, CLX, EL, SPG, TSN

Corn Crop Booms, Prices to Fall (ADM, VLO, HML, TSN, GIS, K)

Paul Ausick — Thu, 22 Dec 2011 16:38:28 +0000

Fears for a supply shortage of corn earlier this year led the world’s farmers to plant more of the crop on expectations of higher prices. Now that the crop is in, it turns out to be a sixth consecutive record crop and will surely push prices down next year. That’s good news for makers of ethanol like Archer Daniels Midland Co. (NYSE: ADM) and Valero Energy Corp. (NYSE: VLO) to meat processors like Hormel Foods Corp. (NYSE: HRL) and Tyson Foods Inc. (NYSE: TSN) to cereal makers General Mills Co. (NYSE: GIS) and Kellogg Co. (NYSE: K).

The US Department of Agriculture is forecasting a global corn crop of 867.5 million metric tons and analysts survey by Bloomberg News are forecasting a price of $4.305/bushel next year. Corn is trading today at about $6.20/bushel.

Demand for meat is driving the demand for corn and wheat as feed for cattle, pigs, and chickens, with total demand for feed expected to reach 640.6 million metric tons in the crop season ending next Spring.

The US share of the booming corn crop will decrease to less than 50% for the first time in 40 years.

Filed under: Agriculture, Commodities Tagged: ADM, GIS, HML, K, TSN, VLO

Top Analyst Upgrades & Downgrades (AMGN, AN, BXP, CREE, DOLE, GRMN, GILD, HIG, HAR, MSFT, NFLX, VRUS, TSN, WYNN, YUM)

Administrator — Tue, 22 Nov 2011 13:29:44 +0000

These are some of Tuesday’s top analyst upgrades, downgrades, and initiations seen from Wall Street research calls.

Amgen Inc. (NASDAQ: AMGN) Cut to Market Perform at BMO.
AutoNation Inc. (NYSE: AN) Raised to Neutral at Goldman Sachs.
Boston Properties Inc. (NYSE: BXP) Maintained Buy but cut target to $105 from $120 at Argus.
Cree Inc. (NASDAQ: CREE) Maintained Buy with $33 target at Canaccord Genuity.
Dole Food Co. Inc. (NYSE: DOLE) Cut to Underperform with $9 target at BofA/ML.
Garmin, Ltd. (NASDAQ: GRMN) reiterated Outperform as Bull of the Day at Zacks.
Gilead Sciences Inc. (NASDAQ: GILD) Raised to Outperform at BMO; Raised to Buy at Citigroup (late-Monday).
Hartford Financial Services Group (NYSE: HIG) Cut to Underperform as Bear of the Day at Zacks.
Harman International Industries Inc. (NYSE: HAR) named as Value stock of the day at Zacks.
Microsoft Corporation (NASDAQ: MSFT) Started as Hold at ThinkEquity.
Netflix, Inc. (NASDAQ: NFLX) Re-initiated as Sell with $60 target at Canaccord Genuity.
Pharmasset, Inc. (NASDAQ: VRUS) downgraded by Wells Fargo, UBS, Canaccord Genuity, Leerink Swann, and Citigroup after super-premium buyout.
Tyson Foods, Inc. (NYSE: TSN) Reiterated Buy at BofA/ML.
Wynn Resorts Ltd. (NASDAQ: WYNN) Cut to Neutral at Janney Capital.
YUM! Brands, Inc. (NYSE: YUM) added to U.S. Focus List at Credit Suisse.

JON C. OGG

Filed under: Analyst Calls Tagged: AMGN, AN, BXP, CREE, DOLE, GILD, GRMN, HAR, HIG, MSFT, NFLX, TSN, VRUS, WYNN, YUM

24/7 Wall St. Closing Bell (AAPL, DV, MS, QCOM, TGT, WDC, HAST, TECD, TSN, HPQ, TSL, CSIQ, JKS, JASO, LDK, STP, LNKD, VRUS, GILD, FMCN, GEDU, REGN, Z)

Paul Ausick — Mon, 21 Nov 2011 21:08:28 +0000

Stock prices plunged this morning and spent most of the day trading way down. The DJIA hovered around -300 points for most of the day, while the NASDAQ was off around -50 points and the S&P 500 wobbled around -30 points for most of the day. Today’s report on existing home sales was better than expected, but that was not enough to encourage investors to buy. Continuing concern over the state of Europe and a nearly unanimous belief that the US Congress’s super committee would fail to reach an agreement far outweighed any good news in the first half of the day. In mid-afternoon, Atlanta Federal Reserve president William Lockhart said that he did not foresee a second US recession, and put the likelihood of another recession at 30%. That gave the markets a bit of a bounce late in the day. Gold is down nearly -3%, at $1,674.40 and oil is down slightly to just under $97/barrel.

The unofficial closing bells put the DJIA down about 248 points to 11,547.23 (-2.11%), the NASDAQ fell more than 49 points (-1.92%) to 2,523.14, and the S&P 500 fell -1.86% or more than 22 points to 1,192.99.

There were several analyst upgrades and downgrades today, including Apple Inc. (NASDAQ: AAPL) reiterated as ‘buy’ with a $500 price target at Credit Suisse. Other ratings actions included DeVry, Inc. (NYSE: DV) cut to ‘underperform’ and ‘Bear of the Day’ at Zack’s; Morgan Stanley (NYSE: MS) raised to ‘buy’ at Argus; Qualcomm Inc. (NASDAQ: QCOM) reiterated as ‘buy’ with a $72 price target at Argus; Target Corp. (NYSE: TGT) cut to ‘neutral’ at JPMorgan; and Western Digital Corp. (NYSE: WDC) raised to ‘overweight’ at Barclays.

Here are today’s big post-earnings news reactions with prices during the last half-hour of trading: Hastings Entertainment Inc. (NASDAQ: HAST) was down more than -13%, at $1.65, after posting a new 52-week low of $1.55; Tech Data Corp. (NASDAQ: TECD) was down -0.9%, at $47.47, and Tyson Foods Inc. (NYSE: TSN) was up about 0.3% at $19.51. We took a closer look at Tech Data’s earnings earlier today.

After markets close today and before they re-open for tomorrow, there will be an avalanche of earnings reports. Perhaps the most closely watched will be Hewlett-Packard Co. (NYSE: HPQ) and a half dozen Chinese solar PV makers: JinkoSolar Holding Solar Co. Ltd. (NYSE: JKS), Trina Solar Ltd. (NYSE: TSL), Canadian Solar Inc. (NASDAQ: CSIQ), JA Solar Holdings Co. Ltd. (NASDAQ: JASO), LDK Solar Co. Ltd. (NYSE: LDK), and Suntech Power Holdings Co. Ltd. (NYSE: STP). Shares in all these solar makers are down today, as investors anticipate the bad news that’s coming.

Several other standouts from today are as follows…

LinkedIn Corp. (NASDAQ: LNKD) is down more than -4%, at $68.95. The company’s 180-day lock-up period ended today, adding another 24 million shares of the company available for sale. LinkedIn tied up another 56 million shares for an additional 90 days or the damage could have been worse.

Pharmasset, Inc. (NASDAQ: VRUS) is up nearly 85%, at $134.03, after hitting a new 52-week high of $135. The company has agreed to be acquired by Gilead Sciences Inc. (NASDAQ: GILD) for $11 billion.

Gilead Sciences, Inc. (NASDAQ: GILD) is down nearly -9.7%, at $36.02, after posting a new 52-week low of $34.45. Investors tend to believe that Gilead is paying too much for Pharmasset.

Focus Media Holding Ltd. (NASDAQ: FMCN) is down nearly -39%, at $15.56. The Chinese advertising company is the target of a report by short-selling firm Muddy Waters alleging that Focus Media has signififcantly overstated the number of screens in its LCD network.

Global Education and Technology Group Ltd. (NASDAQ: GEDU) is up more than 97%, at $10.60, after posting a new 52-week high of $10.70. The company is being acquired by Pearson plc, owner of the Financial Times newspaper and other media properties.

Regeneron Pharmaceuticals Inc. (NASDAQ: REGN) is up more than 10%, at $55.02. The company received USDA approval for its eye drug Eylea.

Zillow, Inc. (NYSE: Z) is down more than -13%, at $23.52, after posting a new 52-week low of $22.55. There is no specific news about the company, but, like LinkedIn, a pile of shares will be available on the market when the company’s lock-up period ends in about another two months.

Stay tuned for Tuesday. In addition to the earnings reports we’ve mentioned, here’s a list of other noteworthy events (all times Eastern):

7:45 a.m. – International Council of Shopping Centers-Goldman Sachs retail sales report
8:30 a.m. – US third-quarter GDP report revisions
8:30 a.m. – BEA corporate profits report
2:00 p.m. – Federal Open Market Committee minutes released

Paul Ausick

Filed under: HI/LOW, Market Close Tagged: AAPL, CSIQ, DV, FMCN, GEDU, GILD, HAST, HPQ, JASO, JKS, LDK, LNKD, MS, QCOM, REGN, STP, TECD, TGT, TSL, TSN, VRUS, WDC, Z

Top Earnings Previews For The Coming Week (ADI, BRCD, HPQ, TSN, CPB, NUAN, P, DE)

Administrator — Fri, 18 Nov 2011 18:25:06 +0000

This coming week may be a shortened week for Thanksgiving, but there are still going to be some key earnings to watch. We have compiled a brief list of earnings we will be watching as market movers or sector movers.

We have earnings previews for the following: Analog Devices Inc. (NYSE: ADI); Brocade Communication Systems Inc. (NASDAQ: BRCD); Hewlett-Packard Co. (NYSE: HPQ); Tyson Foods Inc. (NYSE: TSN); Campbell Soup Co. (NYSE: CPB); Nuance Communications, Inc. (NASDAQ: NUAN); Pandora Media Inc. (NYSE: P); and Deere & Co. (NYSE: DE). Estimates are from Thomson Reuters and these are broken out by day.

Monday

Analog Devices Inc. (NYSE: ADI) has estimates of $0.64 EPS and $728.17 million in revenue; next quarter estimates are $0.60 EPS and $707.37 million in revenue. With shares around $35.50, the 52-week range is $29.23 to $43.28.

Brocade Communication Systems Inc. (NASDAQ: BRCD) is not a market mover but it is still way off its year high while some of its peers have been calling things better in their business of late. Estimates are $0.10 EPS and $527.38 million in revenue; next quarter estimates are $0.11 EPS and $535.6 million in revenue.

Hewlett-Packard Co. (NYSE: HPQ) is hardly even in the midst of a turnaround. Meg Whitman is still getting her hands around the business and Dell gave a mixed report of late. Estimates are $1.13 EPS and $32.06 billion in revenue; next quarter estimates are $1.11 EPS and $31.44 billion in revenue. We will be looking at the company’s comments around manufacturing problems for drives for its PC around the flooding in Thailand.

Tyson Foods Inc. (NYSE: TSN) has estimates of $0.31 EPS and $8.19 billion in revenue; next quarter estimates are $0.39 EPS and $8.17 billion in revenue. At $19.50, its 52-week trading range is $15.46 to $20.12.

Tuesday

Campbell Soup Co. (NYSE: CPB) has estimates of $0.79 EPS and $2.21 billion in revenue; next quarter estimates are $0.66 EPS and $2.16 billion in revenue. Shares are right at $33.50 and the 52-week range is $29.69 to $35.66. This one in the middle of a strategy change to get back to more flavorful soups and away from being such low-salt.

Nuance Communications, Inc. (NASDAQ: NUAN) is also set for Tuesday and the speech-to-text software leader’s estimates are $0.41 EPS and $393.33 million in revenue; next quarter estimates are $0.38 EPS and $378.78 million in revenue. At $24.00, the 52-week trading range is $15.56 to $26.97.

Pandora Media Inc. (NYSE: P) is still kicking around after its IPO. The online music playing company has estimates of -$0.01 EPS and $71.44 million in revenue; next quarter estimates are -$0.03 EPS and $82.25 million in revenue. Its stock is around $12.55 and the post-IPO range has been $9.33 to $26.00.

Wednesday

Deere & Co. (NYSE: DE) has estimates of $1.43 EPS and $7.87 billion in revenue; next quarter estimates are $1.26 EPS and $6.17 billion in revenue. At 74.50, Deere has a 52-week range of $59.92 to $99.80.
JON C. OGG

Filed under: Calendar, Earnings Tagged: ADI, BRCD, CPB, DE, HPQ, NUAN, P, TSN

Food Processing Stocks With Most Upside (ADM, BG, TSN, SFD, CPO, CAG, KFT, SLE, GIS, K)

Paul Ausick — Thu, 03 Nov 2011 19:01:24 +0000

The companies we’re looking at today run the gamut from large farm and food products producers to the packaged goods makers that make the products on store shelves. It’s a wide range, for sure, but all are exposed to both commodity prices on one end and on consumer purchasing on the other.

Large farm products companies like Archer Daniels Midland Co. (NYSE: ADM) and Bunge Ltd. (NYSE: BG) have watch corn and wheat prices decline by about -20% and -29% since peaks earlier this year. Fertilizer prices have risen and so have fuel prices. All have an impact on revenues and earnings.

Processing companies like Tyson Foods Inc. (NYSE: TSN), Smithfield Foods, Inc. (NYSE: SFD), Corn Products International Inc. (NYSE: CPO), and ConAgra Foods, Inc. (NYSE: CAG) package private label foods, provide commercial food, and even offer some branded products. The diversity of their customers gives them a bit of a barrier against a collapse in one or another of their markets.

Packaged food giants like Kraft Inc. (NYSE: KFT), Sara Lee Corp. (NYSE: SLE), General Mills, Inc. (NYSE: GIS), and Kellogg Company (NYSE: K) are all household names and depend on strong brands to carry them through slow economic times.

Data from Yahoo! Finance, and current share prices gathered about noon today.

Archer Daniels Midland Co. (NYSE: ADM) has a median target price of $35.00 from 13 brokers. Shares are trading today at $28.88, for an implied gain of $6.12, or 21%. ADM’s forward P/E is 8.52 and the company pays a dividend yield of 2.3%. The stock’s 52-week trading range is $23.69-$38.02, and at today’s price that’s about 22% above its 52-week low and 24% below the 52-week high. This year’s wheat harvest looks to be on a near-record pace, and wheat prices are expected to fall to below $6/bushel by the end of the year from a current price of around $6.36.

Rising corn prices hit ADM hard in its most recent quarter, lowering profit in its biofuel (ethanol) division by -23% and in its sweetener and starches division by -81%. Corn prices are currently expected to remain about the same into next year, which won’t help ADM’s processing revenue. Fortunately for the company its trading profits will get a boost from the higher corn prices.

Bunge Ltd. (NYSE: BG) has a median target price of $74.00 from 11 brokers. Shares are trading today at $61.38, for an implied gain of $12.62, or 21%. Bunge’s forward P/E is 9.32 and the company pays a dividend yield of 1.6%. The stock’s 52-week trading range is $54.03-$76.13, and at today’s price that’s about 14% above its 52-week low and 19% below the 52-week high.

Bunge missed EPS estimates badly in its third quarter as the company ran afoul of volatility in the grain markets. The company painted a brighter picture for its fourth quarter, basing its view on the tightness of supply and the rising demand for food.

Tyson Foods Inc. (NYSE: TSN) has a median target price of $23.00 from 15 brokers. Shares are trading today at $19.27, for an implied gain of $3.73, or 19%. Tyson’s forward P/E is 9.53 and the company pays a dividend yield of 0.8%. The stock’s 52-week trading range is $14.79-$20.12, and at today’s price that’s about 30% above its 52-week low and 4% below the 52-week high.

Tyson will report earnings for its fourth fiscal quarter on November 21st. The consensus EPS estimate is $0.32, half as much as the same period a year ago. Rising feed costs have hammered revenues and earnings this year, and Tyson and other chicken producers are trying to get its customers to share commodity price risk by taking shorter term contracts tied to the cost of feed grains.

Filed under: Agriculture, Analyst Calls, Consumer Goods, Food Tagged: ADM, BG, CAG, CPO, GIS, K, KFT, SFD, SLE, TSN

Top Analyst Upgrades & Downgrades (ARMH, CFN, COP, EIX, GIS, GS, PDLI, SAP, SFD, S, SYK, TEF, TI, TSN, VLO)

Administrator — Tue, 11 Oct 2011 12:14:04 +0000

These are some of this Tuesday’s top analyst upgrades, downgrades, and initiations seen having an impact from Wall Street research calls.

ARM Holdings plc (NASDAQ: ARMH) Raised to Buy at Citigroup.
CareFusion Corporation (NYSE: CFN) Raised to Buy at BofA/ML.
ConocoPhillips (NYSE: COP) Cut to Underperform at Macquarie.
Edison International (NYSE: EIX) Added to US Focus List at Credit Suisse.
General Mills, Inc. (NYSE: GIS) Added to Conviction Buy List at Goldman Sachs.
Goldman Sachs Group Inc. (NYSE: GS) estimates cut to expect a loss by Citigroup.
PDL BioPharma, Inc. (NASDAQ: PDLI) Cut to Sector Perform at RBC.
SAP AG (NYSE: SAP) Started as Buy at Citigroup.
Smithfield Foods Inc. (NYSE: SFD) Raised to Buy at BofA/ML.
Sprint Nextel Corporation (NYSE: S) Cut to Hold at Argus; Removed from U.S. Focus List at Credit Suisse.
Stryker Corporation (NYSE: SYK) Raised to Buy at BofA/ML.
Telefonica, S.A. (NYSE: TEF) Cut to Neutral at Goldman Sachs.
Telecom Italia SpA (NYSE: TI) Cut to Sell at Goldman Sachs.
Tyson Foods Inc. (NYSE: TSN) Raised to Buy at BofA/ML.
Valero Energy Corporation (NYSE: VLO) Raised to Overweight at Barclays.

JON C. OGG

Filed under: Analyst Calls Tagged: ARMH, CFN, COP, EIX, GIS, GS, PDLI, S, SAP, SFD, SYK, TEF, TI, TSN, VLO

The Best Value Stocks in Food & Beverages (CPB, KO, CAG, DPS, GIS, HRL, K, KFT, PEP, TSN, SFD, DF, BRK-A)

Administrator — Tue, 13 Sep 2011 16:37:29 +0000

When it comes to defensive investing, food and beverages are two of the go-to sectors for getting equity market exposure but protecting your assets. The logic is simple enough: “You gotta eat and you gotta drink!” What about when you mix value screens with defensive stocks?

We have been searching for deep value stocks of late now that the market sell-off has taken out a large bite from the value of many major companies. Some analysts group food differently than beverages, but our screen includes all of the following to identify the best value: Campbell Soup Co. (NYSE: CPB); The Coca-Cola Company (NYSE: KO); ConAgra Foods, Inc. (NYSE: CAG); Dr. Pepper Snapple Group, Inc. (NYSE: DPS); General Mills, Inc. (NYSE: GIS); Hormel Foods Corporation (NYSE: HRL); Kellogg Company (NYSE: K); Kraft Foods Inc. (NYSE: KFT); Pepsico, Inc. (NYSE: PEP); Tyson Foods, Inc. (NYSE: TSN); and Smithfield Foods Inc. (NYSE: SFD).

We are looking at food and beverages separately today in identifying the best value for investors looking for safe havens in the storm. This sector is already very defensive in nature, and we found that the defensive sector of consumer products actually has a market premium due to investors seeking safety. The good news is that the food and beverage sector has a few differences.

Campbell Soup Co. (NYSE: CPB) recently traded at $30.85 and its market cap is $10 billion. The stock’s 52-week trading range is $29.69 to $36.99. The current value is trading at a price-to-book ratio of about 9 to 1. Its forward price earnings multiple is 12.2 and its return on equity is 78.8%. The canned soup company currently pays a dividend yield of about 3.8% to investors. Thomson Reuters has a consensus price target of $34.00, implying roughly 10.2% upside to the most recent price. Campbell is under a new CEO and undergoing some change. It is hard to imagine that this is a luxury good or a health food group stock, but the company has been under fire from private-label soups in the past and it is now going to add more salt and flavors to regain some market share. Due to the correction, there is almost a turnaround element here.

The Coca-Cola Company (NYSE: KO) recently traded at $69.37 and its market cap is $159 billion. The stock’s 52-week trading range is $56.01 to $71.77. The current value is trading at a price-to-book ratio of about 4.5 to 1. Its forward price earnings multiple is 16.1 and its return on equity is 41.29%. The beverage giant currently pays a dividend yield of 2.71% to investors. Thomson Reuters has a consensus price target of $77.86, implying roughly 12.2% upside to the most recent price. What is so interesting about Coca-Cola is that it just the magic 52-week high list right after Labor Day. Coke and water, you gotta drink! This is a huge position for Warren Buffett, but chances are that it will be that way in a decade from now (or for his successor).

Filed under: Consumer Goods, Defensive Stocks, Dividend, Editor's Picks, Food, Value Investing, Water Tagged: BRK-A, CAG, CPB, DF, DPS, GIS, HRL, K, KFT, KO, PEP, SFD, TSN

Food, Ethanol Prices Set To Rise Again (ADM, DE, POT, VLO, PEIX, GPRE, KFT, SJM, GIS, K, TSN, HRL, SFD, MOO, DBA)

Administrator — Fri, 12 Aug 2011 13:12:06 +0000

Hot, dry weather is now expected to reduce the US corn harvest and lift consumer prices for everything from breakfast cereal to pump prices at the local service station. Agricultural stocks from Archer Daniels Midland Co. (NYSE: ADM) to Deere & Co. (NYSE: DE) to Potash Corp. of Saskatchewan (NYSE: POT) reacted favorably to the latest report from the US Department of Agriculture.

Ethanol makers Valero Energy Corp. (NYSE: VLO) and Green Plains Renewable Energy, Inc. (NASDAQ: GPRE) also got a boost, but Pacific Ethanol, Inc. (NASDAQ: PEIX) dropped to a new 52-week low of $0.45/share. Pacific Ethanol faces higher costs for corn than either ADM which grows some of its own and Green Plains which benefits from being located in the Midwest, near the nation’s corn-growing region.

Some analysts are projecting a price for corn at above $8/bushel, busting through the all-time high of just over $7.99/bushel set in June. The impact on food prices is likely to vary as some food makers absorb the price increases and others pass the increases along to consumers.

Kraft Foods Inc. (NYSE: KFT), J.M. Smucker Co. (NYSE: SJM), General Mills, Inc. (NYSE: GIS), and Kellogg Co. (NYSE: K) are all trading higher than they were a year ago, but have pulled back from annual highs set earlier this summer. Meat processors Tyson Foods Inc. (NYSE: TSN), Hormel Foods Corp. (NYSE: HRL), and Smithfield Foods, Inc. (NYSE: SFD) will likely switch at least part of their feed supply to cheaper wheat, helping keep prices down for chicken, beef, and pork.

Corn yields per acre are now expected to be 153 bushels/acre, down from a previous USDA estimate of 159 bushels/acre. But if hot temperatures continue, especially at night, yields could fall below 150 bushels/acre. That’s a 10% decline in the crop, and could push prices even higher.

For the ethanol makers, corn prices above $7.50/bushel make ethanol production unprofitable at the current price of around $2.60/gallon. Some wheat can be substituted for corn, but the price for ethanol will have to rise, to some extent cancelling any relief for consumers from lower oil prices.

Corn futures are trading slightly lower in Chicago this morning, after closing at $7.14/bushel yesterday. Soybeans and wheat also rose after the USDA’s report was released yesterday.

The Market Vectors Agribusiness ETF (NYSE: MOO) closed at $49.17 yesterday, up more than 4% on the day, and within a 52-week range of $41.83-$57.93. The PowerShares DB Agriculture Fund (NYSE: DBA) rose about 2.5% yesterday, to close at $32.21, within its 52-week range of $25.63-$35.58.

Paul Ausick

Filed under: Agriculture, Commodities, Food, Oil & Gas Tagged: ADM, DBA, DE, GIS, GPRE, HRL, K, KFT, MOO, PEIX, POT, SFD, SJM, TSN, VLO

Top Earnings Previews for the Week Ahead (SLW, TSN, SPWRA, DIS, CSCO, CSC, DDS, M, MBIA, NWS, KSS, MCP, SODA, JCP, PBR)

Administrator — Fri, 05 Aug 2011 16:42:48 +0000

Earnings season is still going strong, but we are now getting into the late-cycle companies which have a one-month lag to their earnings reports. Several key stocks are due this next week and we have compiled detailed previews on each of the following: Silver Wheaton Corporation (NYSE: SLW); Tyson Foods Inc. (NYSE: TSN); SunPower Corporation (NASDAQ: SPWRA); Walt Disney Co. (NYSE: DIS); Cisco Systems Inc. (NASDAQ: CSCO); Computer Sciences Corporation (NYSE: CSC); Dillard’s Inc. (NYSE: DDS); Macy’s Inc. (NYSE: M); MBIA Inc. (NYSE: MBI); News Corporation (NASDAQ: NWS); Kohl’s Corporation (NYSE: KSS); Molycorp Inc. (NYSE: MCP); Sodastream International Ltd. (NASDAQ: SODA); J.C. Penney Co. Inc. (NYSE: JCP); and Petroleo Brasileiro SA (NYSE: PBR).

We have shown estimates from Thomson Reuters, given price performance data, and added in appropriate color where applicable. We are not including consensus price targets from analysts this week because the huge drops in shares this week will distort the implied upside artificially as those targets may be coming down sharply in many cases.

MONDAY, AUGUST 8

Silver Wheaton Corporation (NYSE: SLW) has estimates of $0.46 EPS and $221.3 million in revenues; next quarter estimates are $0.52 EPS and $253.9 million in revenues. Shares are trading around $33.00, the 52-week trading range is $17.00 to $47.60. If metals and metals stocks continue the volatility, this one will be far less important to traders than it has been. While it is still up 100% from lows, look at how much it is down from highs as silver has proven over and over that $40 is a death trap.

Tyson Foods Inc. (NYSE: TSN) has estimates of $0.41 EPS and $8.3 billion in revenues; next quarter estimates are $0.41 EPS and $8.16 billion in revenues. Shares are trading around $16.00, the 52-week trading range is $14.59 to $20.12. Tyson is supposed to be a defensive stock, but its narrow focus on meats has prevented that safety net from being the case as have some missteps. The chicken is choked.

TUESDAY, AUGUST 9

SunPower Corporation (NASDAQ: SPWRA) has estimates of -$0.18 EPS and $583 million in revenues; next quarter estimates are $0.21 EPS and $741.7 million in revenues. Shares are trading around $17.00, the 52-week trading range is $9.61 to $23.36. The merger-lite move in recent weeks was recently met with lower guidance and the sector has been under pressure from all fronts.

Walt Disney Co. (NYSE: DIS) has estimates of $0.73 EPS and $10.45 billion in revenues; next quarter estimates are $0.67 EPS and $10.8 billion in revenues. Shares are trading around $34.90, the 52-week trading range is $31.55 to $44.34. The Mouse House has yet to stay turned around. This was a $44.00 stock less than ninety days ago and the stock has never recovered.

WEDNESDAY, AUGUST 10

Cisco Systems Inc. (NASDAQ: CSCO) has estimates of $0.38 EPS and $10.97 billion in revenues; next quarter estimates are $0.39 EPS and $10.98 billion in revenues. Shares are trading around $14.60, the 52-week trading range is $14.36 (Friday) to $24.87. What is there to say… a restructuring, layoffs, slow enterprise spending, austerity measures slowing IT, and on and on.

Computer Sciences Corporation (NYSE: CSC) has estimates of $0.69 EPS and $3.99 billion in revenues; next quarter estimates are $0.99 EPS and $4.05 billion in revenues. Shares are trading around $32.40, the 52-week trading range is $32.11 (Friday) to $56.61. 8-times earnings and dirt cheap value… but, who cares in this environment.

Filed under: Calendar, Earnings, The Week Tagged: CSC, CSCO, DDS, DIS, JCP, KSS, M, MBIA, MCP, NWS, PBR, SLW, SODA, SPWRA, TSN