Quebecor World, March Networks and Lundin Mining Could Disappoint

With earnings season under way, investors are looking for companies that will beat expectations. They are also watching out for those that may disappoint. And that’s where our friends at StarMine come in.

Using the research firm’s SmartEstimate, which is based on the most recent forecasts from the most accurate analysts, we are able to highlight some of the names whose profits are expected to meet or beat consensus estimates, and those who may yield negative earnings surprises. However, this time around there were few compelling selections on the positive side, so we will focus on some names that may disappoint.

First up is Quebecor World Inc. (IQW). The troubled commercial printer is expected to produce fourth quarter earnings per share [EPS] of $0.19, according to the consensus estimate. But StarMine’s SmartEstimate is just $0.11, which produces a predicted surprise of negative 41.1%.

UBS analyst Eric Mencke, who has a five-star ranking at StarMine, also has an estimate of $0.11. He believes the company’s failure to sell its European operations will be a drag on EPS and is concerned about its debt levels, according to StarMine.

Next up is Alamos Gold Inc. [AGI.TO] with a consensus estimate of $0.08 per share and SmartEstimate of $0.06. This yields a predicted surprise of negative 18.6%.

CIBC World Markets’ Barry Cooper (5-star) has an estimate of $0.04 per share, and noted the company’s start-up difficulties at its Mulatos mine in Mexico, StarMine said.

March Networks Corp. (MNTWF.PK) is expected to produce a negative earnings surprise of 10.1% when it next reports results. Wellington West analyst Greg Reid (4-star) lowered his earnings estimate on higher expense and lower margin assumptions, according to StarMine.

Finally, Lundin Mining Corp. (LMC) is forecast to disappoint by 17.8%. Brian MacArthur at UBS (4-star) cut his estimates to reflect higher operating costs and depreciation, and changes to tax and currency assumptions, StarMine said.