Earnings Highlights for the Week Ahead

This week, quarterly results are due from Campbell Soup CPB and Polo Ralph Lauren RL, which are expected to report that earnings are lower than they were a year ago. From AutoZone AZO, Big Lots BIG, DSW DSW, H.J. Heinz HNZ, Hormel Foods HRL, Medtronic MDT, NetApp NTAP and Tiffany TIF though, year-over-year earnings growth is anticipated. And analysts are expecting losses for the quarter from Jamba Juice JMBA, Take-Two Interactive TTWO, TiVo TIVO and Zale ZLC. The following four reports could turn out to be the week's highlights, as expectations are high for these companies' earnings and revenue growth, as well as their long-term earnings prospects. Tech Data TECD This computer wholesaler will report its fiscal first-quarter 2012 results before the opening bell tomorrow, May 22. Analysts predict that its earnings will have grown 16.2% from a year ago to $1.05 per share. And its revenues are expected to have grown 13.8% to $6.4 billion. Similar growth is also expected in the second quarter; that is, earnings up 18% and revenues up 13.8%. Tech Data's earnings have topped estimates in recent quarters, and it has a long-term earnings per share growth forecast of 10%. Analysts on average recommend buying TECD, and they have a mean price target on the stock of $55.93 per share. Tech Data's share price was $53.57 at the end of last week, which represents 21.7% growth since the beginning of the year. Applied Materials AMAT The world's largest maker of semiconductor production equipment will post its fiscal second-quarter 2011 results on Tuesday, May 23. Its per-share earnings are expected to come to $0.37 per share, which is an increase of 40.5% from a year ago. Its revenues are forecast to have grown 20.5% to total $2.8 billion. Looking ahead, analysts also expect sequential and year-over-year growth of both earnings and revenues in the third quarter. Applied Materials earnings have grown in each of the past five quarters, exceeding consensus estimates each time. The long-term earnings per share growth forecast is 11%. The stock's mean price target of $17.44 per share offers it plenty of room to run from the current share price of $14.09. Note that the share price has pulled back 7.6% in the past month. Costco COST Fiscal third-quarter 2011 results from the largest wholesale club operator in the United States are on tap for Wednesday morning. The consensus forecast calls for per-share earnings of $0.77 on revenues of $20.1 billion. That's up from earnings of $0.66 per share and $17.8 billion in revenues in the same period of last year. Looking ahead to the full year, analysts so far expect to see earnings growth of 12.8% and an 11.6% increase in revenues. In the past few quarters, analysts' estimates have come within a penny or so of Costco's per-share earnings. The long-term earnings per share growth forecast is 13.1%. The stock has had a consensus Buy rating for more than 90 days. Year to date, Costco's stock has outperformed the broader markets, as well as Walmart WMT, the operator of rival Sam's Club. Omnivision Technologies OVTI Omnivision manufactures semiconductor image sensors, and the company is scheduled to report its fiscal fourth-quarter 2011 earnings after the markets close on Thursday. Analysts are looking for earnings to have jumped 72.3% from a year ago to $0.65 per share. Revenue is expected to come in at $254.5 million, which is an annual increase of 61.9%. The full-year forecast calls for $2.47 per share earnings (up 76.1%) on revenue of $952.6 million (up 58.0%). Note that analysts have underestimated Omnivision's earnings in recent quarters; the beat was by 44% in the third quarter. The long-term earnings per share growth forecast is 15%. The consensus recommendation is to buy OVTI, and analysts have a mean price target of $40.82 per share on the stock. The share price was $35.54 at the end of last week and is up 20% since the beginning of the year.