6 Key Earnings to Watch This Week

NEW YORK ( TheStreet) - Thor Industries ( THO), Lululemon Athletica ( LULU) and Ralcorp Holdings ( RAH) are among the six stocks reporting quarterly earnings next week.

These stocks, spanning the retail, consumer services, and capital goods sectors, have upside potential of 9% to 60% with average analyst buy rating of 59% and hold rating of 40%.

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

No. 6. Thor Industries ( THO) manufactures and sells a range of recreation vehicles and small- and mid-size buses in the U.S. and Canada. The company operates in three segments: towable recreation vehicles, motorized recreation vehicles and buses. Thor will announce first-quarter fiscal 2012 results on Tuesday.

Net income for the first quarter is estimated at $24.2 million, or 42 cents per share, compared to net income of $21.89 million, or 41 cents per share, in the year-ago quarter, according to analysts polled by Bloomberg.

Sales are forecast at $674 million, up 11% from $606.68 million in the first quarter of fiscal 2011. Operating profit is seen at $36.75 million vs. $29.61 million in the same quarter a year ago. Cash flow per share is pegged at $4.57 per share, compared to 18 cents in the year-earlier quarter.

The company has a current dividend yield of 1.7%. Mid-October, THO paid regular quarterly dividend of 15 cents per share, an increase of 50% over the previous dividend payout.

Of the eight analysts covering the stock, five recommend a buy and the rest suggest a hold. There are no sell ratings on the stock. Analysts polled by Bloomberg expect the stock to gain an average 57% to $36.75 from current levels over the next 12 months.

No. 5 Ralcorp Holdings ( RAH) operates in five segments: branded cereal products, other cereal products, snacks, sauces & spreads, frozen bakery products, and pasta. RAH will announce fourth-quarter 2011 results on Tuesday.

Net income for the quarter is estimated at $77.86 million, or $1.39 per share, compared to $69.54 million, or $1.26 per share in the year-ago quarter, analysts polled by Bloomberg say.

Sales are seen growing 8% to $1.2 billion from 2010 fourth quarter. Gross margin is seen increasing to 26.95% from 25.89%, while cash flow per share is estimated to rise to $2.44 from 27 cents. Operating profit is projected to jump 44% to $154.6 million.

For full year 2011, the company is estimated to record net income of $291.88 million or $5.24 per share compared to $261.08 million, or $4.68 per share, for the full year 2010. Sales for the full year are seen increasing by 17% to $4.74 billion.

Of the 13 analysts covering the stock, 54% recommend a buy and the rest suggest a hold. There are no sell ratings on the stock. Analysts polled by Bloomberg expect the stock to gain almost 9.2% to $86.50 from current levels over the next 12 months.

No. 4 La-Z-Boy ( LZB), a global producer of reclining chairs, operates in three segments: upholstery, casegoods and retail. It sells its products mainly in the U.S. and Canada. The company will announce its second-quarter fiscal 2012 results on Nov. 30.

Net income for the quarter is estimated at $7.73 million on sales of $310.25 million, vs. $3.98 million recorded on $292.98 million sales for the same period in 2011 analysts polled by Bloomberg estimate. Earnings per share are forecast at 14 cents for the quarter, up from 7 cents in the year-ago quarter. Operating profit is seen rising to $12.23 million from $5.39 million in the prior-year quarter.

EBITDA is seen expanding 60% to $17.63 million. Cash flow per share is seen swinging to positive 26 cents from negative 13 cents earlier.

Of the six analysts covering the stock, four recommend a buy and the rest suggest a hold. There are no sell ratings on the stock. Data from Bloomberg has analysts forecasting the stock gaining almost 59.7% to $15.00 from current levels over the next 12 months.

No. 3 Synovis Life Technologies ( SYNO), a diversified medical device company, develops, manufactures and markets biological and mechanical products used in the repair and reconstruction of soft tissue damaged or destroyed by disease or injury. Synovis will announce fourth-quarter 2011 results on Thursday.

For the reporting quarter, net income is seen increasing to $2.07 million, or 18 cents per share, from $1.48 million, or 13 cents per share, in the year-ago quarter. Sales are seen rising 17% to $21.27 million from $18.12 million in the same quarter prior year. Gross margin is likely to rise to 72.82% from 72.26% in the year-ago period. Operating profit is seen surging 39% to $3.11 million.

For full year 2011, the company is estimated to record net income of $7.82 million or 71 cents per share as compared to $4.88 million, or 43 cents per share, for the full year 2010. Sales for the full year are seen increasing by 19% to $81.73 million.

Of the five analysts covering the stock, three recommend a buy and the rest suggest a hold. There are no sell ratings on the stock. Analysts polled by Bloomberg foresee the stock gaining almost 33.2% to $23 current levels over the next 12 months.

No. 2 PVH ( PVH), an apparel company, operates in five segments: Calvin Klein licensing, wholesale dress furnishings, wholesale sportswear and related products, retail apparel and related products, and retail footwear and related products. PVH will announce third-quarter fiscal 2011 results on Thursday.

For the quarter, the company expects net income of $131.75 million on sales of $1.62 billion vs. net income of $111.33 million on $1.52 billion sales for the same period in 2010, as per analysts polled by Bloomberg. Earnings per share are forecast at $1.81 for the quarter, up 17% from $1.55 in 2010 third quarter. Operating profit is seen growing 24% to $221 million.

For the quarter, return on equity is likely to rise to 9.27% from 0.28% in the year-ago quarter. Meanwhile, return on assets is anticipated at 5.40%, compared to 0.20% earlier. Also, cash flow per share is seen rising to $1.25 from 53 cents.

Of the 15 analysts covering the stock, 73% recommend a buy and the remaining suggest a hold. On average, analysts polled by Bloomberg expect the stock to gain almost 26% to $81.82 from current levels over the next 12 months.

No. 1 Lululemon Athletica ( LULU) is a designer and retailer of technical athletic apparel, operating primarily in North America and Australia. It offers a range of performance apparel and accessories for women, men and female youth. LULU will announce third-quarter 2011 results on Thursday.

For the reporting quarter, net income is seen at $35.73 million, or 25 cents per share, vs. $25.70 million, or 18 cents per share, recorded in the year-ago quarter. Net sales for the period are seen growing to $235.56 million from $175.8 million. Operating profit is forecast at $55.77 million from $42.38 million earlier. EBITDA is likely to swell to $63.83 million from $48.80 million earlier.

LULU is forecast to record gross margin of 54.78%, return on assets of 21.04%, and return on equity of 30.44% for the quarter. Cash flow per share is estimated at 30 cents.

Of the 22 analysts covering the stock, 36% recommend a buy and 55% suggest a hold. On an average, analysts polled by Bloomberg expect the stock to gain almost 19.6% to $55.87 from current levels over the next 12 months.