5 Earnings Previews for Week Ahead

NEW YORK ( TheStreet) - Medtronic ( MDT), Patterson ( PDCO) and Signet ( SIG) are among the five stocks reporting quarterly earnings next week.

Analysts estimate these stocks, from sectors such as medical devices, dental supplies and retail, to have upside potential ranging from 16% to 33%. An average of 57% of analysts rate them as a buy.

We present the stocks in order of their earnings release date.

5. Medtronic ( MDT) manufactures and sells device-based medical therapies. Medtronic will announce second-quarter fiscal 2012 results on Nov. 22.

Net income for 2012 second quarter is estimated at $872 million, or 82 cents per share, compared to $887 million, or 52 cents per share, in the year-ago quarter, according to analysts polled by Bloomberg. Sales are seen increasing 4% to $40.7 billion for the quarter.

Gross margin is expected to drop slightly to 75.34%, vs. 75.38% during the same quarter 2011, while the per-share dividend is estimated to increase by 7% to 24 cents. Return on assets and equity is seen declining 72 and 686 basis points to 11.15% and 15.52%, respectively.

Of 34 analysts covering the stock, 38% recommend a buy and 62% suggest a hold. Analysts polled by Bloomberg expect the stock to gain almost 17.5% to $39.8 from current levels over the next 12 months.

4. Patterson ( PDCO) operates in veterinary and medical supplies markets. The company will announce its second quarter fiscal 2012 results on Nov. 22.

Net income for the second quarter of 2012 is estimated at $55.04 million on sales of $8.8 billion, vs. $53.36 million recorded on $8.6 billion sales for the same period in 2010, according to data compiled by Bloomberg. Earnings per share are forecast at 46 cents for the quarter, up 2% from 45 cents in the year-ago quarter.

Operating profit is seen rising 2% to $91.81 million. Cash flow per share is forecast at $0.53, vs. $0.31 in the same quarter prior year; dividend per share is seen increasing 10% to $0.11.

Of 14 analysts covering the stock, 43% recommend a buy and the rest rate it a hold. There are no sell ratings on the stock. Analysts polled by Bloomberg expect the stock to gain almost 16.3% to $34.2 from current levels over the next 12 months.

3. Signet Jewelers ( SIG) is a jewelry retailer. It will announce 2012 third-quarter results on Nov. 22.

For the quarter, net income is expected to almost triple to $17.98 million, or 21 cents per share, from $6 million, or 7 cents per share, in the year-ago quarter. Sales are seen rising 7% to $685 million from $641.8 million in the same quarter prior year. Operating profit is likely to surge 74% to $32.15 million. Gross margin is projected at 31.1% from 30.17% in the year-ago period. Cash flow per share is also seen improving to negative 38 cents compared to negative 67 cents in the year-ago period.

Of 13 analysts covering the stock, 77% recommend a buy and 23% suggest a hold. Analysts polled by Bloomberg expect the stock to gain almost 27.3% to $55.2 from current levels over the next 12 months.

2. Chicos FAS ( CHS) is a retailer selling women's clothes, accessories and other gift items, under the Chico's, White House/Black Market and Soma brands. The company will announce third-quarter results on Nov. 22.

Net income for the third quarter of 2011 is seen at $35.14 million on sales of $549 million, compared to a net income of $28.84 million recorded on $483 million sales in the same period in 2010, according to analysts polled by Bloomberg. For the quarter, earnings per share are seen at 20 cents, up 26% from 16 cents in the same quarter last year.

Gross margin is expected to increase marginally to 57.08% from 56.95% in the equivalent period last year. Operating profit is seen increasing 24% to $54.85 million. Meanwhile, dividend per share is likely to decrease 38% to 5 cents, compared to 8 cents during the same period in the previous year.

Of 23 analysts covering the stock, 43% recommend a buy and 57% suggest a hold. On average, analysts polled by Bloomberg expect the stock to gain almost 32.6% to $15.3 from current levels over the next 12 months.

1. Designer Shoe Warehous ( DSW), or DSW, operates stores, online sales and leased departments. DSW will announce 2011 third-quarter results on Nov. 22.

For the quarter, net income is seen at $36.27 million, or 80 cents per share, vs. $35.51 million, or 79 cents per share, recorded in the year-ago quarter. Also, net sales are seen growing to $5.31 billion from $4.89 billion. Operating profit is pegged at $59.5 million from $55.07 million earlier. Gross margin is forecast to rise 1% to 32.72%. Return on assets and equity are anticipated to decline by 1% and 4% to 11.5% and 17.9%, respectively.

Of 11 analysts covering the stock, 82% recommend a buy and 9% rate a hold. On an average, analysts polled by Bloomberg expect the stock to gain almost 26% to $56.3 from current levels over the next 12 months.