Zacks Earnings Preview: Best Buy, Constellation Brands, Family Dollar, Micron Technology...

Zacks Earnings Preview: Best Buy, Constellation Brands, Family Dollar, Micron Technology and Monsanto

CHICAGO--(Business Wire)--
Zacks.com releases the list of companies likely to issue earnings
surprises. This week's list includes Micron Technology (NYSE:MU) and
Monsanto (NYSE:MON). To see more earnings analysis, visit
http://at.zacks.com/?id=3207.

Earnings Preview is written by Charles Rotblut, CFA, Senior Market
Analyst for Zacks.com.

April can be a volatile month for weather and I expect it also to
be volatile for the equity markets. The major indexes are in a broad
trading range and daily direction is being influenced by the news du
jour. Given the ongoing credit crunch, sputtering economy and probable
poor first-quarter earnings reports from financial companies, the most
logical prediction is that investors are in for more of the same in
terms of stock price movement.

Moving on to the week at hand, just 47 companies are scheduled to
release results. This very small group will include S&P 500 members
Best Buy (NYSE:BBY), Constellation Brands (NYSE:STZ), Family Dollar
(NYSE:FDO), Micron Technology (NYSE:MU) and Monsanto (NYSE:MON).

The reason for so few reports is that first-quarter earnings
season will not "officially" start until Apr 7, when Alcoa (NYSE:AA)
reports. There will be a sharp rise in the number of earnings reports
starting in the second half of the month.

March employment numbers will be published on Friday, Apr 4.
Forecasts are calling for a small increase in nonfarm payrolls. The
unemployment rate could rise to 5%.

Other economic data will include:

-- Monday: March Chicago PMI

-- Tuesday: February construction spending

-- Wednesday: February factory orders

-- Thursday: Weekly initial jobless claims

-- Friday: March nonfarm payrolls and unemployment (mentioned
above)

Keep in mind that some of the biggest influences on market
direction may be unscheduled events, particularly any new developments
from the financial sector.

On a brighter note, Monday is opening day with Arizona playing at
Cincinnati at 1:20 ET!

Companies That Could Issue Positive Earnings Surprises during the
Week of Mar 31 - Apr 4

Monsanto (NYSE:MON) recently raised its guidance. Citing market
share gains and strong performance by Roundup and other herbicides,
MON believes it will report ongoing EPS of $1.75 for the fiscal
second-quarter. Brokerage analysts, who collectively had been
expecting profits of $1.34 per share, quickly boosted their
projections to match the company's guidance. A positive surprise is
very possible, however, as the company has exceeded expectations for
five consecutive quarters. MON is scheduled to report on Wednesday,
Apr 2, before the start of trading.

Companies That Could Issue Negative Earnings Surprises during the
Week of Mar 31 - Apr 4

Two of the 20 covering brokerage analysts lowered their fiscal
second-quarter profit expectations on Micron Technology (NYSE: MU)
during the past seven days. The cuts likely reflect concerns about a
lack of pricing power. The consensus earnings estimate calls for a
loss of 35 cents per, one cent worse than a week ago. The most
accurate estimate is more bearish at a loss 43 cents per share. The
semiconductor company has missed expectations three times during the
past four quarters. Micron is scheduled to report on Wednesday, Apr 2,
after the close of trading.

Charles Rotblut, CFA, is the senior market analyst for Zacks.com.

Want to turn earnings surprises into quick profits? Learn how by
visiting http://at.zacks.com/?id=3206.

About the Zacks Rank

Since 1988, the Zacks Rank has proven that "Earnings estimate
revisions are the most powerful force impacting stock prices." Since
inception in 1988, #1 Rank stocks have generated an average annual
return of +32%. During the 2000-2002 bear market, Zacks #1 Rank stocks
gained +43.8%, while the S&P 500 tumbled -37.6%. Also note that the
Zacks Rank system has just as many Strong Sell recommendations (Rank
#5) as Strong Buy recommendations (Rank #1). Since 1988, Zacks Rank #5
stocks have underperformed the S&P 500 by 129% annually (+5% versus
+12%). Thus, the Zacks Rank system allows investors to truly manage
portfolio trading effectively.

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Visit http://www.zacks.com/performance for information about the
performance numbers displayed in this press release.

Disclaimer: Past performance does not guarantee future results.
Investors should always research companies and securities before
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Zacks.com
Charles Rotblut, CFA
312-265-9352
pr@zacks.com
Visit: www.Zacks.com

Copyright Business Wire 2008