By Diane Alter, Contributing Writer, Money Morning•
The earnings reports calendar is getting crowded as some big names deliver numbers this week - and investors will get to see if a harsh winter hurt Q1 results this season.
S&P 500 companies' Q1 earnings are forecast to have fallen 1.4% year over year, according to data from FactSet. That's down sharply from the start of the year, when profit growth was projected to rise 4.5%.
Estimates for Q1 earnings started coming down as companies guided lower during their 2013 earnings reports.
But some two-thirds of companies typically top forecasts, so final figures will likely be less dismal than estimates.
First-quarter earnings season unofficially kicked off Tuesday when Alcoa Inc. posted results after the close. The aluminum producer swung to a loss in the first quarter. But, earnings per share (EPS) came in at $0.09 a share, $0.03 ahead of expectations.
That was good enough for Cowen & Co. and Stifel Nicolaus to boost their price targets by $1, to $12 and $15 respectively, Additionally, UBS and Jefferies each increased their price targets by $2.50 to $12.50.
Here are some more earnings reports on the calendar this week that investors will want to pay attention to...
5 Upcoming Earnings Reports to Watch
After the close Wednesday, Bed Bath & Beyond Inc. (Nasdaq: BBBY) is forecast to post EPS of $1.60 for FQ4 2014. That's down from $1.68 in the same quarter a year ago. Even a slight miss could spell trouble. Shares of one of the largest household goods chain retailer tumbled 12.5% in January after missing quarterly expectations. BBBY shares were flat at $67.75 in early afternoon trading.
Ruby Tuesday Inc. (NYSE: RT) is expected to report a loss of $0.07 per share for the fiscal quarter ending February 2014, when it posts earnings Wednesday after the close. That compares EPS of $0.10 earned in the same period a year earlier. Expectations are guarded for the company behind Ruby Tuesday and Lime Fresh restaurants. Comparable sales slumped 7.8% at company-owned locations last quarter, prompting management to make a series of changes. Shareholders will be watching to see if those changes have paid off. In afternoon trading, RT shares were up 1.54% at $5.93.
This next company's earnings report will shed light on consumer behavior...
Family Dollar Stores Inc. (NYSE: FDO) is anticipated to have earned $0.90 per share for the second quarter ending March 2014 when it posts earnings Thursday morning. That's a hefty $0.31 per share less than the year-ago quarter. Sales are also predicted to have slumped, dipping 4.2% year over year. Revenue is projected at $2.77 billion, down from $2.89 billion. In an ominous sign, put (bearish) activity has picked up ahead of the report.
All eyes Friday morning will be on earnings from two big banks reporting before the open:
JP Morgan Chase & Co. (NYSE: JPM) is forecast to report Q1 EPS of $1.41 a share, down from $1.59 a year earlier. Despite of a spate of cringe-worthy headlines from big losses suffered from the infamous London Whale trade to multi-billion dollar regulatory settlements, JPM shares have held up surprisingly well. Investors will be looking for fresh signs of improvement amid all the regulatory reforms pressuring banks and their profits. Trading around $59.26 at last check, JPM's seemingly Teflon shares are not far from its 52-week high of $61.48.
Wells Fargo & Co. (NYSE: WFC) on Friday morning is expected to report Q1 EPS of $0.96 a share, up $0.04 from the same quarter a year ago. If there was a darling among big banks, Wells Fargo would likely be it. The San Francisco, Calif.-headquartered bank weathered the 2008 financial crisis better than its peers. Thanks to its straightforward, plain vanilla approach to doing business, Wells recorded its 11th consecutive quarter of record earnings last quarter. Investors will be watching to see if Wells can continue that impressive streak. Wells stands among Warren Buffett's favorites and is one of Berkshire Hathaway's (NYSE: BRK.A) largest holdings.