6 Diversified Stocks: Earnings Watch

NEW YORK ( TheStreet) - These six companies from the technology and utilities industry will report respective quarterly earnings tomorrow. These stocks have upsides ranging from 6% to 50% with an average 65% buy rating and 33% hold rating, and no sell ratings.

The stocks are stacked based on their upside potential, great to greatest.

6. American Electric Power ( AEP), a holding company, engages in the business of providing electric service, consisting of generation, transmission and distribution on an integrated basis to its retail customers. AEP has 12 public utility subsidiaries that cover certain sections of almost 11 states.

Analysts polled by Bloomberg expect the company to record sales of $3.59 million during the second quarter 2011, up 6% from the year-ago quarter. Net income is seen increasing to $357.25 million or 76 cents per share, compared to $355 million or 74 cents per share in the year-ago quarter. Operating profit is seen recording a 100% increase to $787 million from $394 million in the second quarter of 2010.

With a dividend yield of 5.01%, the company recently declared regular quarterly cash dividend of 46 cents per share on its common stock, payable Sept. 9.

Of the 22 analysts covering the stock, roughly half recommend a buy while the remaining suggest a hold. Analysts polled by Bloomberg foresee the stock gaining an average 6.4% to $40.10 in the upcoming 12 months.

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5. ALLETE ( ALE), an energy company, operates in two business segments: Regulated Operations, and Investments and Other. Its regulated operations consist of regulated utilities and an investment in American Transmission Company, while Investments and Other consists of coal mining operations and real estate investment.

The company is likely to report a net income of $15.87 million or 47 cents per share during the second quarter of 2010, as per analysts polled by Bloomberg. For the quarter, Allete is likely to report sales of $222 million, compared to $211 million recorded in the year-ago quarter. EBITDA for the quarter is seen rising by 5% to $54.5 million.

With a dividend yield of 4.5%, the company recently announced a quarterly dividend of 44.5 cents per share on its common stock payable on September 1, 2011. For the previous quarter, AEL paid a dividend of 44 cents.

Of the five analysts covering the stock, three recommend a buy and the rest rate a hold. Analysts polled by Bloomberg foresee the stock gaining an average 8.2% to $44.33 in the upcoming 12 months.

4. Calpine ( CPN), an independent wholesale power company, owns and operates natural gas-fired and geothermal power plants in North America. The company's portfolio of power generation technologies consists of natural gas-fired combustion turbines, which are primarily combined-cycle plants, and renewable geothermal conventional steam turbines.

A consensus estimate of analysts polled by Bloomberg expects recording sales of $1.48 billion in the second quarter of 2011, compared to $1.43 billion in the same period of 2010. Net loss during the quarter is seen narrowing down to $5.22 million or breakeven per share as compared to a loss of $42 million, or 9 cents a share, in the same quarter prior year. Return on assets during the quarter is seen expanding to 1.22% from 0.17% earlier. Operating profit is estimated to double to $253 million.

Of the 15 analysts covering the stock, 11 recommend a buy while 3 suggest a hold. Analysts polled by Bloomberg foresee the stock gaining an average 15.8% to $19.36 in the upcoming 12 months.

3. Middlesex Water ( MSX), owns and operates regulated water utility and wastewater systems in New Jersey, Delaware and Pennsylvania. Besides, the company also operates water and wastewater systems under contract on behalf of municipal and private clients in New Jersey and Delaware.

Analysts foresee Middlesex Water reporting net income of $4.51 million on sales of $27.27 million for the second quarter 2011, compared to net income of $4.42 million on sales of $26.54 million during the second quarter of 2010. For the quarter, the company is likely to report earnings of 28 cents per share compared to earnings of 31 cents per share in the comparable quarter prior year.

The company has a dividend yield of 4.00%. Of the five analysts covering the stock, two recommend a buy and the remaining rate a hold. There are no sell ratings on the stock. Analysts polled by Bloomberg foresee the stock gaining an average 16% to $21.25 in the upcoming 12 months.

2. Monotype Imaging Holdings ( TYPE), a global provider of text imaging solutions, provides end user and embedded solutions for the print, web and mobile environment, enabling people to create and consume dynamic content on any and every device. Besides, its technologies and fonts allow the display and printing of digital content.

Analysts polled by Bloomberg expect the company to record net income of $5.05 million or 14 cents per share for the second quarter of 2011, increasing 66% from $3.04 million or 8 cents per share during the same quarter of the previous year. Sales during the quarter are seen rising to $29.83 million from $24.43 million in the second quarter of 2010. Gross margin is expected to rise to 91% from 88.63% in the year-ago period, while operating profit is likely to increase by 68% for the same period.

Of the nine analysts covering the stock, eight recommend a buy and one rates it a hold. There are no sell ratings on the stock. Analysts polled by Bloomberg foresee the stock gaining an average 28.3% to $16.80 in the upcoming 12 months.

1. KVH Industries ( KVHI), a manufacturer of solutions, provides global high-speed Internet, television, and voice services via satellite to mobile users at sea, on land and in the air. Besides, it also manufactures navigational sensors and integrated inertial systems for defense and commercial guidance and stabilization applications. It operates through an international network of distributors and retailers.

Analysts polled by Bloomberg expect the company to report record sales of $31.43 million during the second quarter of 2011, increasing 7% from $29.5 million recorded during the second quarter of 2010. Net income for the period is pegged at $0.85 million or 6 cents per share, while EBITDA is seen coming in at $2.74 million. Gross margin is likely to rise to 39.54% from 38.97% in the earlier quarter.

Of the five analysts covering the stock, 80% recommend a buy and the rest suggest a hold. Analysts polled by Bloomberg foresee the stock gaining an average 50% to $16.50 in the upcoming 12 months.

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