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The week in preview: New quarter earnings kick-off

The new quarter brings with it a new earnings season. While the earnings crunch doesn't begin in earnest until the following week, Alcoa as usual helps kick things off this coming week.

One of the world's leading producers of aluminum, Pittsburgh-based Alcoa Inc. (NYSE: AA) is scheduled to report second-quarter results Tuesday after market close. Analysts surveyed by Thomson Financial on average expect the company to report net income of 68 cents per share on revenue of $7.4 billion. That's down 16% from EPS a year ago. Alcoa has missed estimates in two of the past five quarters -- by four cents in the previous quarter. Analysts have recommend buying AA for more than 90 days. Shares have fallen 10.3% year to date, but the long-term EPS growth forecast is 21.6%.

Beverage distributor Pepsi Bottling Group Inc. (NYSE: PBG) is scheduled to report its second-quarter results Tuesday morning. Analysts are looking for earnings of 75 cents per share, up 6.6% from the same period of the previous year, on revenue of $3.6 billion. PBG has offered up positive surprises recently, by a penny in the previous quarter. However, analysts recommend holding PBG, and have for more than 90 days. The long-term EPS growth forecast is 9.1%, which is better than the industry average. Shares have fallen 27.6% year to date.

Marriott International Inc. (NYSE: MAR), one of the world's leading hoteliers, is scheduled to report its second-quarter results Thursday morning. Analysts on average are expecting the Bethesda, Md.-based company to report net income of 49 cents per share, down 14% from the same period of last year, on revenue of $3.2 billion. Marriott has met or beat earnings expectations in the past five quarters. Analysts consensus recommendation remains to buy MAR. The long-term EPS growth forecast is 12.3%, less than its industry average. Shares have fallen 25.3% year to date.

Friday morning should bring the second-quarter results from market bellwether, General Electric Co. (NYSE: GE). Analysts on average are looking for earnings of 54 cents per share -- the same as in the year ago period -- on revenue of $44.3 billion. Though GE's results have generally been in line with Wall Street estimates recently, EPS fell short by 7 cents, or nearly 14%, in the previous quarter. Still, analysts recommend buying GE and have for more than 90 days. Shares have fallen 27.4% year to date, and the long-range EPS growth forecast is 11%.

Other economic data coming out next week to keep an eye on include:

  • Wholesale trade (May 2008), Tuesday, 10:00 a.m. ET
  • Pending home sales (May 2008), Tuesday, 10:00 a.m. ET
  • Consumer credit (May 2008), Tuesday, 3:00 a.m. ET
  • EIA petroleum status (week of July 4), Wednesday, 10:35 a.m. ET
  • Initial jobless claims (week of July 4), Thursday, 8:30 a.m. ET
  • U.S. trade balance (May 2008), Friday, 8:30 a.m. ET
  • Preliminary consumer sentiment (July 2008), Friday 10:00 a.m. ET
  • U.S. Treasury budget (June 2008), Friday 2:00 p.m. ET

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Last updated: August 27, 2008: 09:25 PM

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