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With the global recovery gaining traction, most companies are witnessing improving fundamentals and are expected to post sales and EPS growth next year. However, following is a list of 17 Large cap companies for which sell side expects Sales and EPS to decline in 2012.

Tkr

Company Name

Industry Name

EPS Next Yr Growth (%)

SALES Next Yr Growth (%)

CF

CF INDUSTRIES

CHEMICALS

-13.01

-5.4

PHI

PHILIPPINE LONG

TELE UTIL

-0.2

-2.16

OTCPK:SHCAY

SHARP CORP

HOME FURNISH

-17.95

-8.42

DO

DIAMOND OFFSHORE

OIL

-9.75

-1.72

LPL

LG DISPLAY CO LT

ELECTRONICS

-93.01

-8.41

OTCPK:OMVKY

OMV AG

OIL

-1.31

-1.37

NLY

ANNALY CAPITAL M

INVESTMENTS

-5.7

-2.33

PEG

PUB SVC ENTERS

ELECT UTIL

-4.67

-1.02

EBR

ELETROBRAS

ELECT UTIL

-49.9

-68.86

EXC

EXELON CORP

ELECT UTIL

-24.96

-6.25

OTCPK:NTDOY

NINTENDO LTD

HOME FURNISH

-47.47

-11.1

OTCPK:SGTZY

SURGUTNEFTEGAZ

OIL

-18.57

-23.8

LLY

ELI LILLY

DRUGS

-13.26

-7.04

BMY

BRISTOL-MYERS SQ

DRUGS

-5.63

-10.78

AZN

ASTRAZENECA

DRUGS

-9.23

-7.64

OTCQX:DTEGY

DEUTSCHE TELEKOM

TELE UTIL

-1.21

-4.75

RIO

RIO TINTO PLC

PREC METALS

-10.32

-3.72

Here are some of the specifics about these companies, including a brief description of their business, growth rates (topline and bottomline) and Valuation:

CF Industries Holdings, Inc. (CF) is a manufacturer and distributor of nitrogen and phosphate fertilizer products. Its EPS forecast for the current year is 14.07 and next year is 12.24. According to consensus estimates, its topline is expected to grow 34.58% current year and decline 5.4% next year. It is trading at a forward P/E of 11.47. Out of 16 analysts covering the company, 11 are positive and have buy recommendations and 5 have hold ratings.

The Philippine Long Distance Telephone Company (PHI) is a telecommunications service provider in the Philippines. The Company’s segments include wireless, fixed line and information and communications technology. Its EPS forecast for the current year is 4.99 and next year is 4.98. According to consensus estimates, its topline is expected to grow 9.3% current year and decline 2.16% next year. It is trading at a forward P/E of 10.99. Out of 2 analysts covering the company 1 has a sell recommendation and 1 has a hold rating.

Sharp Corporation (OTCPK:SHCAY) is a Japan-based company engaged in the manufacture and sale of electric telecommunication, electrics and electronic equipment. Its EPS forecast for the current year is 0.39 and next year is 0.32. According to consensus estimates, its topline is expected to grow 24.8% current year and decline 8.42% next year. It is trading at a forward P/E of 29.16. One analyst covers the company and has a hold rating.

Diamond Offshore Drilling, Inc. (DO) is a global offshore oil and gas drilling contractor. Its EPS forecast for the current year is 6.05 and next year is 5.46. According to consensus estimates, its topline is expected to decline 1% current year and 1.72% next year. It is trading at a forward P/E of 14.45. Out of 36 analysts covering the company, 6 are positive and have buy recommendations, 19 have sell recommendations and 11 have hold ratings.

LG Display Co., Ltd. (LPL) is a Korea-based company engaged in the manufacture of thin-film transistor liquid crystal display (TFT-LCD) panels for use in televisions, notebook computers and desktop monitors. Its EPS forecast for the current year is 1.43 and next year is 0.1. According to consensus estimates, its topline is expected to grow 43.1% current year and decline 8.41% next year. It is trading at a forward P/E of 169.1. Out of 3 analysts covering the company, 2 have sell recommendations and 1 has a hold rating.

OMV Aktiengesellschaft (OMV) is an international energy company with activities in Exploration and Production (E&P), Refining and Marketing including petrochemicals (R&M), and Gas and Power (G&P). Its EPS forecast for the current year is 6.13 and next year is 6.05. According to consensus estimates, its topline is expected to grow 31.8% current year and decline 1.37% next year. It is trading at a forward P/E of 7.6. One analyst covers the company and has a hold rating.

Annaly Capital Management, Inc. (NLY) owns, manages and finances a portfolio of real estate related investments, including mortgage pass-through certificates, collateralized mortgage obligations (CMOs), Agency callable debentures, and other securities representing interests in the obligations backed by pools of mortgage loans. Its EPS forecast for the current year is 2.47 and next year is 2.33. According to consensus estimates, its topline is expected to grow 32.31% current year and decline 2.33% next year. It is trading at a forward P/E of 7.52. Out of 17 analysts covering the company, 12 are positive and have buy recommendations and 5 have a hold rating.

Public Service Enterprise Group (PEG) is an energy company with a diversified business mix. PSEG’s operations are primarily in the Northeastern and Mid Atlantic United States. Its EPS forecast for the current year is 2.65 and next year is 2.52. According to consensus estimates, its topline is expected to grow 3.65% current year and decline 1.02% next year. It is trading at a forward P/E of 12.52. Out of 19 analysts covering the company, 11 are positive and have buy recommendations, 1 has a sell recommendation and 7 have hold ratings.

Centrais Eletricas Brasileiras SA (Eletrobras) (EBR) is a Brazil-based holding company that is principally engaged in the electric power generation and transmission system. Its EPS forecast for the current year is 1.6 and next year is 0.8. According to consensus estimates, its topline is expected to decline 42% current year and 68.86% next year. It is trading at a forward P/E of 20.06. Out of 2 analysts covering the company, 1 has a sell recommendation and 1 has a hold rating.

Exelon Corporation (EXC) is a utility services holding company. Its business consists of the Company’s owned and contracted electric generating facilities, its wholesale energy marketing operations and its retail supply operations. Its EPS forecast for the current year is 4.04 and next year is 3.03. According to consensus estimates, its topline is expected to decline 3.86% current year and 6.25% next year. It is trading at a forward P/E of 13.51. Out of 21 analysts covering the company, 4 are positive and have buy recommendations, 4 have sell recommendations and 13 have hold ratings.

Nintendo Co., Ltd. (OTCPK:NTDOY) is a Japan-based company mainly engaged in the leisure machine business. It develops, manufactures, and sells portable and console game machines as well as game software. It is also engaged in the manufacture and sale of poker cards and karuta (Japanese-style playing cards), the sale of Pokemon (a Japanese animation character) goods, the management of intellectual property rights and the provision of electronic registration services of home use console machines. Its EPS forecast for the current year is 2.17 and next year is 1.14. According to consensus estimates, its topline is expected to decline 22.8% current year and 11.1% next year. It is trading at a forward P/E of 27.98. One analyst covers the company and is positive and has a buy recommendation.

Surgutneftegas OAO (SGTPY.PK) is a Russia-based oil company. The Company’s activities include prospecting and exploration of hydrocarbons, oil and oil and-gas fields development and construction; oil products and petrochemicals manufacturing and marketing; power generation; gas processing, and gas products marketing Its EPS forecast for the current year is 1.19% and next year is 0.97%. According to consensus estimates, its topline is expected to decline 12.67% current year and 23.8% next year. It is trading at a forward P/E of 11.65. Out of 2 analysts covering the company, 1 has a sell recommendation and 1 has a hold rating.

Eli Lilly and Company (LLY) discovers, develops, manufactures and sells products in one business segment, pharmaceutical products. It also has an animal health business segment. Its EPS forecast for the current year is 4.24 and next year is 3.67. According to consensus estimates, its topline is expected to decline 0.16% current year and 7.04% next year. It is trading at a forward P/E of 9.73. Out of 5 analysts covering the company, 3 are positive and have buy recommendations, 6 have sell recommendations and 13 have hold ratings.

Bristol-Myers Squibb Company (BMY) is engaged in the discovery, development, licensing, manufacturing, marketing, distribution and sale of pharmaceutical products on a global basis. Its EPS forecast for the current year is 2.18 and next year is 2.06. According to consensus estimates, its topline is expected to grow 4.3% current year and decline 10.78% next year. It is trading at a forward P/E of 13.20. Out of 22 analysts covering the company, 10 are positive and have buy recommendations, 2 have sell recommendations and 10 have hold ratings.

AstraZeneca PLC (AZN) is a biopharmaceutical company. The Company focuses on the discovery, development and commercialization of prescription medicines for six areas of healthcare: cardiovascular, gastrointestinal, infection, neuroscience, oncology, and respiratory and inflammation. Its EPS forecast for the current year is 6.86 and next year is 6.23. According to consensus estimates, its topline is expected to grow 1.05% current year and decline 7.64% next year. It is trading at a forward P/E of 7.69. Out of 40 analysts covering the company, 10 are positive and have buy recommendations, 12 have sell recommendations and 18 have hold ratings.

Deutsche Telekom AG (DTEGY.PK) is a Germany-based integrated telecommunications provider offering its customers around the world a portfolio of services in the areas of telecommunications and information technology (IT). Its EPS forecast for the current year is 0.89 and next year is 0.88. According to consensus estimates, its topline is expected to grow 3.9% current year and decline 4.75% next year. It is trading at a forward P/E of 17.96. Out of 2 analysts covering the company, 1 is positive and has a buy recommendation and 1 has a sell recommendation.

Rio Tinto Plc (RIO) is an international business involved in each stage of metal and mineral production. The Company produces aluminium, copper, diamonds, coal, iron ore, uranium, gold and industrial minerals (borates, titanium dioxide, salt, talc and zircon). Its EPS forecast for the current year is 9.94 and next year is 8.91. According to consensus estimates, its topline is expected to grow 7.37% current year and decline 3.72% next year. It is trading at a forward P/E of 8.19. All 6 analysts covering the company are positive and have buy recommendations.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Source: 17 Large Caps With Sales and EPS Declining in 2012