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5 Reasons to Worry About Next Week: Darden Restaurants, Inc. (DRI), Insmed Incorporated (INSM), Tiffany & Co. (TIF)

The economy is showing signs of fumbling the recovery.

Sure, the Dow is rocking at all-time highs. The Dow has rattled off 10 consecutive trading days of gains, and you have to go all the way back to 1996 to find the last time that the Dow had that kind of winning streak. However, everything isn’t as rosy as the new highs suggest. Analysts have been trimming their profit targets on many leading companies, and let’s not get started on the record number of people on food stamps at a time when unemployment is supposedly at a multi-year low.

Is Darden Restaurants A Good Stock To Buy?

The news isn’t just iffy on the macro level. There are also more than a few companies that aren’t pulling their own weight in this supposed economic recovery.

There are still plenty of names posting lower earnings than they did a year ago. Let’s go over a few of the companies that are expected to go the wrong way on the bottom line next week.

Company Latest Quarter EPS (Estimated) Year-Ago Quarter EPS
Darden Restaurants (NYSE:DRI) $1.01 $1.25
Insmed (NASDAQ:INSM) ($0.33) ($0.30)
Adobe Software $0.31 $0.57
TIBCO Software (NASDAQ:TIBX) $0.18 $0.20
Tiffany (NYSE:TIF) $1.36 $1.39

Source: Thomson Reuters.

Clearing the table
Let’s start at the top with Darden Restaurants, Inc. (NYSE:DRI).

The Darden name may not ring a bell, but some of its chains will be all too familiar. Darden is the company behind Olive Garden, LongHorn Steakhouse, and Red Lobster. Some of its smaller faster growing chains are the Caribbean themed Bahama Breeze, and the health-conscious Seasons 52.

Given Darden’s wide range of properties, it’s typically a good gauge for casual dining, in general.

Investors are already braced for a soft report. Darden Restaurants, Inc. (NYSE:DRI) warned last month that traffic to its restaurants was suffering as a result of a spike in gas prices and the payroll tax hike that kicked in this year. Darden forecasted a decline of 4.5% in comps at its three flagship chains just a couple of days before the period came to an end.

Insmed Incorporated (NASDAQ:INSM) will kick off the week with its quarterly financials on Monday morning.

Insmed is a biotech that’s keying in on inhaled therapies for orphan lung diseases. Biotechs in the early stage are rarely profitable. It takes years to get drugs through the regulatory pipeline, and most treatments fall short before they make it to the finish line.