Mini Earnings Season on Deck Thursday (PALM, ACN, MU, LEN, CAG, FINL, JTX, TIBX)

Thursday is shaping up to be a miniature one-day version earnings season this week.  This is likely the last of the major earnings reports we’ll see for another three or four weeks until the real earnings season for Q2-2009 kicks off.  On deck are the likes of Palm Inc. (NASDAQ: PALM), Accenture Ltd. (NYSE: ACN), Micron Tech Inc. (NYSE: MU), Lennar Corporation (NYSE: LEN), ConAgra Foods, Inc. (NYSE: CAG), Finish Line (NASDAQ: FINL), Jackson Hewitt Tax Service Inc. (NYSE: JTX), and TIBCO Software Inc. (NASDAQ: TIBX).  Below are preview summaries for each company’s expectations and supporting notes.

Palm Inc. (NASDAQ: PALM) is perhaps the single largest standout stock of the group and this report will mark the end of its Fiscal 2009 year.  Be advised that the Palm Pre launch is NOT going to be a part of the report for the past quarter as the launch date with Sprint was after the end of the reporting period.  We do expect Palm to disclose how many units it has either sold or shipped to date.  Analysts are looking for -$0.62 EPS on $80.6 million in revenue.  If Palm offers guidance for the current quarter, those estimates are -$0.30 EPS and $279 million in revenue.  The key may hinge on when Palm intends to get back to  profitability as analysts are looking for losses through the end of Fiscal 2010 (May-end).  With much more than a tenfold rise and a whopping short interest, Palm will be the ultimate trader battleground stock to watch.

Accenture Ltd. (NYSE: ACN), the IT and management consulting and outsourcing operation, is expected to post $0.64 EPS on $5.2 billion in revenue.  While that will be close to a 20% drop in revenues, analysts are looking for growth to resume in 2010.  With shares having closed at $31.43 and being in the middle of their 52-week trading range, this one has room to swing either way.

Micron Tech Inc. (NYSE: MU), the largest U.S. DRAM maker, is expected to post -$0.42 EPS on $1.18 billion in revenue.  If the company gives guidance, it is expected to post -$0.29 EPS and $1.33 billion in revenues for the next quarter.  Shares have recovered more than 200% from the lows, and they could rally another 50% before hitting a new 52-week high.  This stock still has traders and investors alike stumped due to the serial disappointments from the company.  As noted in the world of DRAM, it has all the same characteristics of all other commodities with the sole exception that prices never really goes up very much.  Analysts are still looking for losses out through 2010.

Lennar Corporation (NYSE: LEN) is on deck as another homebuilder reports earnings.  Shares did close up over 4.5% as investors decided to take a dismal new home sales number for May as a positive because of hopes that the summer could be strong.  Analysts are looking for -$0.64 EPS on $597.5 million in revenue.  The next quarter is the most important as it includes the summer selling season and estimates are -$0.56 EPS and $700.6 million in revenue.  At $7.82, its 52-week trading range is $3.42 to $16.90.

ConAgra Foods, Inc. (NYSE: CAG) is likely to have a large impact on other food distribution giants.  Estimates are $0.42 EPS and $3.33 billion in revenue.  With shares close to $20.00, its 52-week trading range is $13.52 to $23.12.

Finish Line (NASDAQ: FINL) continues to be a huge dilemma: a poor economy, yet everyone needs their athletic shoes.  The question is the buyers go to the company or to co its mpetitors, or even to discounters.  Analysts are expecting $0.01 EPS on $273.1 million in revenue.  After a 4% drop to $7.36 on Wednesday, the 52-week range is $3.42 to $12.43.

Jackson Hewitt Tax Service Inc. (NYSE: JTX) has bounced over 100% from the lows, but many still consider it a troubled stock. We have estimates at $1.68 EPS and $144.5 million in revenue.  Be advised that the coming quarter is the throwaway quarter because of the way the tax season falls.  With shares at $5.96, its 52-week range is $2.80 to $17.83.

TIBCO Software Inc. (NASDAQ: TIBX), the infrastructure software player, is on deck to report and shares have been trading above-average trading volume in the last 5-day period into earnings.  Estimates are $0.09 EPS and $139.35 million in revenues, and next quarter estimates are $0.10 EPS and $146.3 million in revenues.  At $6.45, this stock is between its 52-week range of $3.45 to $8.78.

All estimates are from Thomson Reuters and may be slightly different by the time Thursday morning gets there due to last minute estimate changes from analysts.

Jon C. Ogg
June 24, 2009