Zacks Earnings Preview: General Mills, Micron Technology, Monsanto, Oracle and Research in Motion

Business Wire, June 23, 2008

CHICAGO -- Zacks.com releases the list of companies likely to issue earnings surprises. This week's list includes General Mills (NYSE: GIS), Micron Technology (NYSE: MU), Monsanto (NYSE: MON), Oracle (Nasdaq: ORCL) and Research in Motion (Nasdaq: RIMM). 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.

The Federal Reserve Board will hold a two-day meeting on Tuesday and Wednesday. Though no action on interest rates will be taken, the meeting's statement will be scrutinized for any suggestions of a rate hike at the August meeting.

Technology stocks will compete for investors' attention with Micron Technology (NYSE: MU), Oracle (Nasdaq: ORCL) and Research in Motion (Nasdaq: RIMM) scheduled to report. A total of 42 companies are on the earnings calendar, including 16 members of the S&P 500.

Monsanto's (NYSE: MON) conference call could generate a higher-than-usual level of interest because of the recent flooding in the Midwest. Many are looking for evidence as to whether farmers are intending to replant corn, switch to soybeans or simply seek insurance. Similarly, General Mills (NYSE: GIS) could get asked about the impact of higher corn prices.

Key economic data will include:

* Tuesday: June Conference Board consumer confidence survey

* Wednesday: May durable goods orders, May new home sales, weekly crude inventories

* Thursday: May existing home sales, final first-quarter GDP, weekly initial jobless claims

* Friday: May personal income and spending

No speeches from Fed officials are currently scheduled.

Dips by the Dow below 12,000 have turned out to be buying opportunities this year. Whether this will hold true again will depend on whether or not the market reacts positively to the week's earnings news and the Fed's statement. Oil will remain a wildcard.

Companies That Could Issue Positive Earnings Surprises during the Week of June 23 - 27

Last Wednesday, General Mills (NYSE: GIS) preannounced fiscal fourth-quarter profits of 73 cents. (The profits exclude the mark-to-market valuation of certain commodity positions.) Two out of the three covering brokerage analysts promptly adjusted their forecasts, causing the consensus to rise three cents to 71 cents per share. The most accurate estimate is more bullish and matches the company's guidance of 73 cents per share. GIS has topped expectations for two consecutive quarters. General Mills is scheduled to report on Wednesday, June 25, before the start of trading.

Four of the 12 brokerage analysts who cover Monsanto (NYSE: MON) have raised their fiscal third-quarter forecasts within the past month. The consensus earnings estimate of $1.35 is two cents higher than the average forecast of a month ago. The most accurate estimate is slightly more bullish at $1.36 per share. MON has issued six consecutive positive earnings surprises. Monsanto is scheduled to report on Wednesday, June 25, before the start of trading.

Four out of the past five positive earnings surprises from Research in Motion (Nasdaq: RIMM) have been followed by new highs in the stock's price. Ahead of the smartphone manufacturer's fiscal first-quarter report, one analyst has raised his forecast. Though the revision did not move the consensus earnings estimate from 85 cents per share, it did contribute to a most accurate estimate of 86 cents per share. Research in Motion is scheduled to report on Wednesday, June 25, after the close of trading.

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

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