Earnings Expectations For The Week Of October 6: Alcoa Inc, PepsiCo, Inc. & More

A new earnings season gets underway this week when Alcoa Inc AA, PepsiCo, Inc. PEP and Yum! Brands, Inc. YUM share their third-quarter results. Analysts expect at least some growth on the top and bottom lines for all three companies.

Also scheduled to step into the earnings spotlight are Costco Wholesale Corporation COST, as well as Family Dollar Stores, Inc. FDO and Monsanto Company MON, from which an earnings decline and a seasonal net loss, respectively, are expected.

Here's a closer look at the upcoming week:

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Alcoa

The third-quarter forecast for this leading aluminum producer calls for earnings per share (EPS) to have jumped from $0.11 in the year-ago period to $0.22 in Wednesday afternoon's report. Yet revenues are expected to be only a little more than 1 percent higher to $5.84 billion.

Note that 60 days ago the consensus EPS estimate was only $0.17, and that EPS exceeded consensus expectations in the previous two quarters by at least 50 percent. So far, the consensus forecast for the current quarter shows strong year-on-year growth on the bottom line but marginal revenue growth.

Costco

The forecast for this membership warehouse retailer calls for earnings of $1.52 per share and for revenue to come to $35.42 billion for the fiscal fourth quarter. In the year-ago period, the company posted EPS of $1.40 per share and revenue totaled $32.49 billion.

For the full-year, analysts are looking for more than 2 percent EPS growth to $4.60 and for sales to be almost 7 percent higher than a year ago to $112.44 billion. Both the quarterly and full-year EPS estimates have ticked up by a penny in the past 60 days. Look for Costco to share its results Wednesday before the opening bell.

Family Dollar

Analysts expect this discount store operator to say that it had a profit of $0.77 per share in its fiscal fourth quarter. That would be down from $0.86 in the year-ago period. Revenues, though, are forecast to have risen about 3 percent from a year ago to $2.58 billion for the period that ended in August.

The full-year forecast calls for earnings of $3.09 per share and for revenue to total $10.45 billion, which would compare to EPS of $3.80 per share and $10.39 billion in sales posted in the previous year. The company is scheduled to share its results Thursday after the markets close.

Monsanto

When it presents its results early Wednesday, this St. Louis-based agricultural products company is expected to say its seasonal net loss for the most recent quarter was $0.23 per share, narrower than last year's $0.47. The full fiscal year EPS are predicted to be up more than 12 percent to $5.21.

The consensus forecast also calls for revenue to be up more than 9 percent to $2.41 billion for the fourth quarter and more than 5 percent higher to $15.67 billion for the full year. So far, the estimates for the current quarter suggest EPS will rise more than 16 percent and sales will be less than 6 percent higher than a year ago.

PepsiCo

This beverage and snack giant is expected to report a third-quarter profit of $1.29 per share in Thursday morning's report. That would be a gain of a nickel per share from the same period of last year. Note that analysts underestimated its EPS in the previous four quarters by at least 4 percent.

The maker of Cheetos, Cap'n Crunch and Mountain Dew is also expected to say that revenues edged up from a year ago to $17.13 billion for the quarter. So far, almost no growth on the top line is expected for both the current quarter and for the full year, but EPS are expected to be up more than 4 percent.

Yum! Brands

In its report late Tuesday, the operator of the Taco Bell, KFC and Pizza Hut chains is expected to say that its EPS rose four cents from the year-ago quarter to $0.89 for the three months that ended in September. Note that 60 days ago the consensus EPS estimate was $1.01, and that EPS missed estimates in the previous period.

Revenues for the third quarter are predicted to be essentially flat at $3.48 billion, relative to the same period last year. So far, the forecast for the current quarter has revenue almost 4 percent higher.

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And Others

Others expected to report earnings gains this week include Fastenal, Infosys and Progressive. Analysts are looking for a net loss from NovaGold Resources.

In the following week, the new earnings season ramps up, with results due from Bank of America, Citigroup, Delta Air Lines, eBay, General Electric, Goldman Sachs, Google, IBM, Intel, Johnson & Johnson, J.P. Morgan, Netflix, Wells Fargo and many others.

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