Warning: 6 Stocks Reporting Earnings This Week With History Of Disappointment

Watch out. Earnings season is an exciting time for investors who see an opportunity to benefit from mispricings and high (or low) expectations that fall short. If you're interested in trading earnings mispricing this week (Feb 26-29) we made a list that might help you round out your research.

While history is no guarantee of future performance, we compiled a list of stocks reporting later this week that have a history of disappointing investors  with an average earnings surprise of at least -5% over the last five quarterly reports. Do you think the market is still overvaluing these names?

Use this as a starting point for your own analysis.  List Average 1-Year Return: 9%

 

1. Expeditors International of Washington Inc. ( EXPD): Provides logistics services in the United States and internationally. Market cap at $8.53B, most recent closing price at $40.81.

In Dec 2011: Reported EPS at 0.43 vs. estimate at 0.47 (surprise of -8.5%). In Mar 2012: Reported EPS at 0.36 vs. estimate at 0.4 (surprise of -10%). In Jun 2012: Reported EPS at 0.39 vs. estimate at 0.43 (surprise of -9.3%). In Sep 2012: Reported 0.42 vs. estimate at 0.43 (surprise of -2.3%. [Average earnings surprise at -7.53%].

Reporting 2/26

 

2. Hospitality Properties Trust ( HPT): Engages in buying, owning, and leasing hotels. Market cap at $3.31B, most recent closing price at $26.75.

In Dec 2011: Reported EPS at 0.78 vs. estimate at 0.79 (surprise of -1.3%). In Mar 2012: Reported EPS at 0.78 vs. estimate at 0.79 (surprise of -1.3%). In Jun 2012: Reported EPS at 0.75 vs. estimate at 0.83 (surprise of -9.6%). In Sep 2012: Reported 0.74 vs. estimate at 0.78 (surprise of -5.1%. [Average earnings surprise at -4.32%].

Reporting 2/27

 

3. California Water Service Group ( CWT): Provides water utility and other related services in California, Washington, New Mexico, and Hawaii. Market cap at $850.77M, most recent closing price at $20.30.

In Dec 2011: Reported EPS at 0.04 vs. estimate at 0.18 (surprise of -77.8%). In Mar 2012: Reported EPS at 0.03 vs. estimate at 0.04 (surprise of -25%). In Jun 2012: Reported EPS at 0.31 vs. estimate at 0.33 (surprise of -6.1%). In Sep 2012: Reported 0.56 vs. estimate at 0.59 (surprise of -5.1%. [Average earnings surprise at -28.5%].

Reporting 2/27

4. Insulet Corporation ( PODD): Engages in the development, manufacture, and marketing of insulin infusion systems for people with insulin-dependent diabetes in the United States. Market cap at $1.11B, most recent closing price at $21.32.

In Dec 2011: Reported EPS at -0.3 vs. estimate at -0.26 (surprise of -15.4%). In Mar 2012: Reported EPS at -0.31 vs. estimate at -0.28 (surprise of -10.7%). In Jun 2012: Reported EPS at -0.3 vs. estimate at -0.26 (surprise of -15.4%). In Sep 2012: Reported -0.26 vs. estimate at -0.24 (surprise of -8.3%. [Average earnings surprise at -12.45%].

Reporting 2/27

 

5. Chart Industries Inc. ( GTLS): Manufactures and supplies engineered equipment used in the production, storage, and end-use of hydrocarbon and industrial gases in the United States and internationally. Market cap at $2.06B, most recent closing price at $68.46.

In Dec 2011: Reported EPS at 0.51 vs. estimate at 0.62 (surprise of -17.7%). In Mar 2012: Reported EPS at 0.48 vs. estimate at 0.5 (surprise of -4%). In Jun 2012: Reported EPS at 0.57 vs. estimate at 0.63 (surprise of -9.5%). In Sep 2012: Reported 0.66 vs. estimate at 0.75 (surprise of -12%. [Average earnings surprise at -10.8%].

Reporting 2/28

 

6. Emeritus Corp. ( ESC): Operates senior living communities that provide assisted living, and Alzheimer's and dementia care services to senior citizens in the United States. Market cap at $1.28B, most recent closing price at $28.26.

In Dec 2011: Reported EPS at -0.53 vs. estimate at -0.37 (surprise of -43.2%). In Mar 2012: Reported EPS at -0.43 vs. estimate at -0.35 (surprise of -22.9%). In Jun 2012: Reported EPS at -0.49 vs. estimate at -0.31 (surprise of -58.1%). In Sep 2012: Reported -0.36 vs. estimate at -0.26 (surprise of -38.5%. [Average earnings surprise at -40.68%].

Reporting 2/28

 

( List compiled by Kapitall's Rebecca Lipman)

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