Earnings Releases Scheduled for Jan. 29th

Damon is a member of The Motley Fool Blog Network -- entries represent the personal opinion of the blogger and are not formally edited.

Tuesday, January 29th falls in the heart of earnings season. More than 100 companies will post results on that day, as well as the next two. Among those reporting on the 29th are the following.

Corning (NYSE: GLW)

Sales in the company’s core liquid-crystal-display (LCD) glass business have probably turned the corner behind rising retail sales of LCD televisions and computers in the U.S. and China. Volumes are on the upturn, offset by moderate pricing deterioration. Plus, demand for Gorilla Glass, the small-form factor product used in cell phones, has been improving, too.

There is likely to be some revenue softness stemming from the weakening of the Japanese yen during the quarter. For every $1 drop in the yen’s value on average for the quarter, Corning would currently lose about $6 million in sales. That factor, along with some cost excesses are probably why analysts believe EPS was flat year over year in the December quarter, at $0.33.

GLW shares look enticing at their recent quotation. It is likely that management is taking the right steps to lift margins, having announced restructuring measures, and LCD glass sales appear to be heading upward.

Plantronics (NYSE: PLT)

The maker of wireless headsets should continue to benefit from the enactment of legislation barring the use of handheld cellphones while driving. Its core Office and Contact Center division is struggling to gain positive momentum amid elevated unemployment. As a result, share earnings probably declined in the December quarter.

Specifically, analysts estimate that figure was $0.61, a dime lower year over year. Although the holiday season likely brought an increase in mobile-related sales, the lower margins on those products limited the bottom line in all likelihood.

While Plantronics has hit a rough patch, some potential catalysts exist. The company is building its unified communications product portfolio. Plus, the cyclical nature of its office business implies improved profits as conditions brighten. PLT shares, up sharply of late, hold decent long-term appreciation potential.

JetBlue Airways (NASDAQ: JBLU)

The New York-based carrier’s stock has gained investor attention along with its industry peers in recent months. JetBlue continues to expand domestically while others sit tight, adding service to Puerto Rico and other Caribbean destinations.

Despite a likely challenging fourth quarter, share profits probably expanded nicely in 2012. With passenger miles solidly on the rise, it may well be in store for a better 2013, as well. Delta Air Lines’ December-quarter earnings release indicated favorable trends in air traffic and yields, factors that augur well for JBLU.

What differentiates JetBlue besides its growth strategy is its reliance on the leisure travel market, though its Boston expansion is helping to boost its corporate presence. Management’s strategy is sound and the fleet additions should support long-term profit gains in a favorable environment. It should avoid excess debt levels and capacity by way of paring back fleet plans when necessary.

International Paper (NYSE: IP)

Paper and corrugated product manufacturing giant International Paper is expected to have earned $0.64 per share in the fourth quarter, down $0.02 from the prior year. For the full year, EPS might well have dropped more than 20%, to around $2.44.

Nevertheless, IP could be poised for a strong turnaround in 2013. It will realize the impact of price increases in its North American Industrial Packaging business and benefit, too, from numerous cost reduction initiatives. The company is utilizing its cash effectively, having raised the dividend as well as invested in emerging markets including Turkey and Brazil. Given the positive sales and profit outlook, as well as the above-average payout, IP shares look appealing.

Summary

In reviewing each of these equities, Corning might offer the most upside at this time, with the market not yet pricing in the LCD glass market bounceback. Plantronics shares would jump on a surprise or better-than-anticipated guidance. JetBlue holds substantial upside for risk-tolerant investors. International Paper is a solid blue-chip manufacturing holding.


dctotal has no position in any stocks mentioned. The Motley Fool recommends Corning. The Motley Fool owns shares of Corning. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. Is this post wrong? Click here. Think you can do better? Join us and write your own!

blog comments powered by Disqus

Compare Brokers

Fool Disclosure