Beware of Earnings Season

by Rick Aristotle Munarriz - October 10, 2009 - 0 comments

Every Friday, I look at seven companies that are projected to post year-over-year dips in quarterly profitability the following week. However, as we prepare to dive right into earnings season, I've found myself with a lot more than just seven major companies targeted to take steps back on the bottom line next week.

I'm not kidding. Here are seven more market bellwethers that will stumble over lower earnings, even though their stocks have mostly climbed higher lately:

Company	Latest Quarter's EPS (Estimated)	Year-Ago Quarter's EPS
Charles Schwab (Nasdaq: SCHW)	$0.17	$0.26
CSX (NYSE: CSX)	$0.71	$0.94
Linear Technology (Nasdaq: LLTC)	$0.24	$0.48
Advanced Micro Devices (NYSE: AMD)	($0.42)	$0.13
Harley Davidson (NYSE: HOG)	$0.21	$0.71
Southwest Airlines (NYSE: LUV)	($0.01)	$0.09
General Electric (NYSE: GE)	$0.20	$0.45

Source: Yahoo! Finance.

That's a lot of disappointment waiting to happen if these companies don't outperform. Didn't the economy begin to show signs of life during the third quarter? Haven't many of these companies slashed costs over the past year?

There's bound to be plenty of good news too, but keep an eye on these market-moving stocks. Along with the other stocks I singled out earlier, there are way too many opportunities for heartbreak next week.

Last edited by Salinder Kumar on Sat, 10/10/2009 - 01:05 | Write to author: Rick Aristotle Munarriz |