Zacks Earnings Preview: Casey's General Stores and Staples

CHICAGO--(Business Wire)--
Zacks.com releases the list of companies likely to issue earnings
surprises. This week's list includes Casey's General Stores (Nasdaq:
CASY) and Staples (Nasdaq: SPLS). 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.

I expect trading volume to increase as traders and fund managers
return from the holiday. U.S. stocks have stayed in a trading range,
however, and barring a disruption to oil supplies, it is very possible
that the higher volume won't result in either an upward or a downward
breakout.

The earnings calendar is extremely light with just 43 companies
confirmed to report. S&P 500 members H&R Block (NYSE: HRB) and Staples
(Nasdaq: SPLS) are the most notable names within this group.

Wednesday's release of the Federal Reserve's Beige Book and
Friday's issuance of the August employment numbers highlight the
economic calendar.

-- Tuesday: August ISM manufacturing index, July construction
spending

-- Wednesday: Beige Book, July factory orders, weekly crude
inventories

-- Thursday: Weekly initial jobless claims

-- Friday: August unemployment and nonfarm payrolls

Federal Reserve Governor Randall Kroszner will speak in Argentina
about U.S. and international financial systems on Monday, Sep 1.

Companies That Could Issue Positive Earnings Surprises

One of the 4 brokerage analysts who cover Casey's General Stores
(Nasdaq: CASY) recently raised his fiscal first-quarter profit
forecast. The revision pushed the consensus earnings estimate 3 cents
higher to 51 cents per share. The most accurate estimate is more
bullish at 59 cents per share. CASY has topped expectations during 4
out of the past 5 quarters. Casey General Stores is scheduled to
report on Wednesday, Sep 3, after the close of trading.

Companies That Could Issue Negative Earnings Surprises

Staples (Nasdaq: SPLS) warned that second-quarter earnings per
share declined approximately 15% compared to a year prior.
Contributing to the decline was a 7% drop in North American same-store
sales. One-third of the covering brokerage analysts responded by
trimming their forecasts. The revisions caused the consensus earnings
estimate to decline by a penny to 24 cents per share. The most
accurate estimate is more bearish at 22 cents per share. The office
supply retailer met expectations last quarter, but its fourth-quarter
results were a penny below expectations. Staples is scheduled to
report on Wednesday, Sep 3, before the start of trading.

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 +30%. 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 81% annually (+2% versus
+11%). Thus, the Zacks Rank system allows investors to truly manage
portfolio trading effectively.

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performance numbers displayed in this press release.

Disclaimer: Past performance does not guarantee future results.
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Zacks.com
Contact: Charles Rotblut, CFA
Phone: 312-265-9352
Email: pr@zacks.com
Visit: www.Zacks.com

Copyright Business Wire 2008