Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



5 Reasons to Worry About Next Week

Watch stocks you care about

The single, easiest way to keep track of all the stocks that matter...

Your own personalized stock watchlist!

It's a 100% FREE Motley Fool service...

Click Here Now

The economy is showing signs of fumbling the recovery.

Sure, Tuesday's report on durable goods in this country is showing that orders spiked 5.7%; but it's not as rosy as it seems. Larger orders for commercial aircraft padded the results. Back out transportation, and the metric actually fell 0.5% for the month.

The news isn't just iffy on the macro level. There are also more than a few companies that aren't pulling their own weight in this supposed economic recovery.

There are still plenty of names posting lower earnings than they did a year ago. Let's go over a few of the companies that are expected to go the wrong way on the bottom line next week.


Latest Quarter EPS (Estimated)

Year-Ago Quarter EPS

Bona Films (UNKNOWN: BONA.DL  )



Team (NYSE: TISI  )



International Speedway (NASDAQ: ISCA  )






Xyratex (UNKNOWN: XRTX.DL  )



Source: Thomson Reuters.

Clearing the table
Let's start at the top with Bona Films.

The Beijing-based film distributor has been one of China's most-neglected stocks. The regional movie distributor went public at $8.50 three years ago, but it has never traded out of the single digits.

Some will argue that Bona has made its own bed. It has been profitable every single quarter in its brief public tenure, but the company has also missed Wall Street's profit targets in each of the four previous periods. It's hard to fathom that unwelcome streak coming to an end when Bona reports on Monday. Despite China's growing appetite for theatrical entertainment, Bona's been a disappointment.

Team was a losing team after hosing down its guidance earlier this month. The provider of specialty industrial services warned that weakness at its Canadian and European business units, and the timing of large turnaround projects, find it scaling back on its expectations for its fiscal year ending in May.

Team now sees a fiscal year profit of $1.70 a share to $1.85 a share, with $705 million to $720 million in revenue. The third quarter -- the one that Team will be reporting on come Tuesday -- is seasonally a weak period, but the international weakness will sting this time around. Team is now targeting break-even results, well short of the $0.10 a share that it rang up a year earlier.

Some analysts have yet to update their projections, explaining why Team's average estimate is at $0.03 a share instead of closer to the likely goose egg on the bottom line.

International Speedway is the motorsports promoter behind some of the more iconic race tracks, including Daytona and Talladega.

The promoter made news for the wrong reason last month. A horrific multi-car crash during the final lap of the Nationwide Series race the day before the legendary Daytona 500 injured several spectators, after debris from the race car of Kyle Larson flew into the stands.

The company may address fan safety concerns, or any negative attendance trends since the tragic event took place, but the reason International Speedway makes the cut in this column is that analysts see it posting slightly lower earnings than it did a year earlier on flat revenue.

WD-40 naturally makes the namesake lubricant that's versatile for its countless applications. The company's product portfolio of cleansers and cleaners includes Lava industrial-strength soap, X-14 bathroom cleaners, and Carpet Fresh odor neutralizer.

Wall Street sees WD-40's profitability slipping 14% on a per-share basis and, unfortunately, the company has fallen short of bottom-line forecasts in two of the past three quarters.

Finally we have Xyratex. The provider of enterprise data storage solutions had posted just a single quarterly deficit in the three previous years before posting a loss in its most recent quarter. The market's braced for another quarter of red ink.

Xyratex rewarded investors late last year with a meaty $2 per share one-time dividend, but shareholders suffering through the losses now may be wondering if their patience will be rewarded this time around. The stock is actually trading higher so far through 2013, but eventually, the fundamentals will have to follow suit.

Why the long face, short-seller?
These companies have seen better days. The market has rewarded many of these stocks with reasonable gains over the past year, but they still haven't earned those upticks. Lower earnings translates into higher earnings multiples, and nobody wants to see that happen.

The good news here is that Wall Street already expects these companies to deliver shrinking bottom lines. In other words, the bad news is already baked into the shares.

The more I think about it, the less worried I become.

The best investing approach is to choose great companies and stick with them for the long term. The Motley Fool's free report, "Three Stocks That Will Help You Retire Rich," names stocks that could help you build long-term wealth and retire well, along with some winning wealth-building strategies that every investor should be aware of. Click here now to keep reading.

Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2338090, ~/Articles/ArticleHandler.aspx, 10/1/2016 1:20:00 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 4 hours ago Sponsored by:
DOW 18,308.15 164.70 0.91%
S&P 500 2,168.27 17.14 0.80%
NASD 5,312.00 42.85 0.81%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

4/8/2016 3:59 PM
BONA.DL $13.63 Down +0.00 +0.00%
Bona Film Group CAPS Rating: *
ISCA $33.42 Up +0.01 +0.03%
International Spee… CAPS Rating: **
TISI $32.71 Up +0.23 +0.71%
Team CAPS Rating: *****
WDFC $112.43 Up +0.46 +0.41%
WD-40 CAPS Rating: ***
XRTX.DL $0.00 Down +0.00 +0.00%
Xyratex CAPS Rating: *****