Spices, vices, and big share prices will lead the way in the week of earnings that lies ahead. Let's take a closer look.
Monday
If earnings come in 57 varieties, H.J. Heinz (NYSE:HNZ) would probably come in somewhere in the middle. Smooth and consistently predictable -- like one of its slow-pouring ketchup bottles -- the company has earned between $0.50 and $0.58 a share for nine straight quarters. Sound appetizing? It does to our income investing guru, Mathew Emmert. He singled out Heinz in our "Stocks Fools Love" feature earlier this month and it was also one of his recommended stocks last year in the Income Investor newsletter service. Wall Street's looking for the company to earn $0.59 a share when it posts its third-quarter report come Monday morning, making it 10 straight. Like Leave it to Beaver, Heinz seems to be stuck in the 50s, but the trend is clear. It won't be long before the 60s are here again.
Tuesday
Hoping to top earnings the way it tops its pies, Papa John's (NASDAQ:PZZA) will be the next company hoping to spark some rising dough. It's been a tough couple of years for the pizza chains as pesky cheese prices and then last year's tomato price hikes have left dents in a business that can't seem to cut its ties to deep-discounting to win hungry patrons over. That may all change in a few weeks when new CEO Nigel Travis takes over. He is coming from Blockbuster (NYSE:BBI), where he served as President and chief operating officer.
Wait a minute. What does a pepperoni pizza have to do with DVD rental? More than you think. Papa John's has already been working with movie studios in promotions that include free flicks with orders, and the move is likely to further integrate entertainment into home-delivered foodstuffs. It's a great way to stand out. It's an even better way to stand out without giving your product away.
Wednesday
If you like your earnings like you like your groceries -- in large amounts -- then has Costco (NASDAQ:COST) got a report for you. The warehouse club giant that has rattled traditional grocery store chains while providing shoppers with wholesale prices was a Wall Street winner through the 1990s. Things haven't gone so well since then, as the stock is trading essentially where it was five years ago.
A few months ago, we interviewed Costco CEO Jim Sinegal about the company's recent struggles and the reasons for its upbeat outlook. With a loyal fan base, Costco is built to last. Unfortunately the market digests the long-term in three-month spoonfuls. Its next gulp comes Wednesday as Costco serves up its fiscal second-quarter financials.
Thursday
Here's a little stock-specific trivia for you. Which quarter has traditionally been Weight Watchers' (NYSE:WTW) weakest? Yes, that's right. You're soaking in it. The company's December quarter has usually been a dud for the company relative to its performance during the other nine months of the year. Whether it's New Year's resolutions wearing down or just holiday feasting, the company has had a soft fourth quarter before bouncing back nicely sequentially. So don't take Thursday's report to heart if it doesn't match up to what the company has produced through the three previous quarters. In short, wait watchers.
Friday
If you like to see your earnings per share reported in hundreds of dollars -- instead of mere pennies -- Warren Buffett has two words of advice for you: Berkshire Hathaway (NYSE:BRKa). The investing juggernaut behind subsidiaries like GEICO and Dairy Queen will wrap up the week with its quarterly numbers -- and those numbers are always big round ones. They have to be, given the stock's price. For instance, on Thursday the original Class A shares were off by $725. Fear? Panic? Not really. That was less than a 1% drop, as the stock is priced at $90,375 a share.
That reminds me. What I would like this summer for my birthday is a round lot of 100 Berkshire Hathaway shares. If you're pinched for cash, I'll settle for a dozen or so.
Want to learn more about the companies waiting to report earnings this week? Check out:
- Stocks Fools Love: H.J. Heinz
- Papa's Making Plans for Nigel
- What Would Costco's CEO Do?
- It's Good to Be Warren Buffett
Until next week I remain,
Longtime Fool contributor Rick Munarriz realizes that he'll have to settle for a Dairy Queen ice cream cake instead of Berkshire Hathaway shares for his birthday. He's fine with that. He does not own shares in any of the companies mentioned in this story. The Fool has a disclosure policy. He is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early.
