Market Overview

Earnings Expectations for the Week of July 18

Earnings season ramps up this week with quarterly reports due from the likes of tech companies such as IBM (NYSE: IBM) and Microsoft (NASDAQ: MSFT), big banks such as Wells Fargo (NYSE: WFC) and Bank of America (NYSE: BAC), and consumer goods giants such as PepsiCo (NYSE: PEP) and Johnson & Johnson (NYSE: JNJ). By and large, expectations are high: analyst forecasts for earnings growth easily outnumber those for earnings declines or net losses.

Here's a day-by-day rundown of the most anticipated quarterly reports of the week.

Monday

Halliburton (NYSE: HAL), Hasbro (NASDAQ: HAS), IBM (NYSE: IBM) and Stanley Black & Decker (NYSE: SWK) are expected to get the week started off right by posting double-digit EPS growth for the second quarter. But Wynn Resorts (NASDAQ: WYNN) may be the big winner of the day: earnings are expected to have nearly doubled from a year ago to $0.99 per share, with revenues up 22.2% to $1.3 billion.

Also on Monday, analysts anticipate that USA Today publisher Gannett (NYSE: GCI) will report smaller earnings, while Zions Bancorp (NASDAQ: ZION) will show a loss for the quarter.

Tuesday

Tuesday will be a big earnings day, with quarterly reports due from the likes of Apple (NASDAQ: AAPL), Coca-Cola (NYSE: KO), Goldman Sachs (NYSE: GS), Harley-Davidson (NYSE: HOG), Johnson & Johnson (NYSE: JNJ), Wells Fargo (NYSE: WFC) and Yahoo! (NASDAQ: YHOO), all of which are expected to report higher earnings in the most recent quarter. The day's biggest anticipated earnings winners are:

  • Goldman Sachs: EPS up 65.5% to $2.27 (but declining revenues)
  • Apple: EPS up 39.5% to $5.80, and revenues 58.7% higher
  • Peabody Energy (BTU): EPS up 33.6% to $1.04, and revenues up 21.3%

Also look for strong earnings growth from Chipotle Mexican Grill (NYSE: CMG), CSX (NYSE: CSX), Omnicom (NYSE: OMC) and W.W. Grainger (NYSE: GWW), but declining earnings from UnitedHealth Group (NYSE: UNH). Bank of America (NYSE: BAC), which hit a 52-week low on Friday, is expected to post a net loss for the second quarter.

Wednesday

Intel (NASDAQ: INTC) is on tap Wednesday, but per-share earnings are expected to be the same as a year ago: $0.51. But its revenues are forecast to be 19.1% higher year over year.

Anticipated double-digit earnings gainers for Hump Day include:

  • Qualcomm (NASDAQ: QCOM): EPS up 19.7% to $0.71
  • Blackrock (NYSE: BLK): EPS up 18.3% to $2.90
  • United Technologies (NYSE: UTX): EPS up 14.9% to $1.41
  • American Express (NYSE: AXP): EPS up 14.3% to $0.98
  • CA (NASDAQ: CA): EPS up 11.7% to $0.51

Also look for earnings growth from Altria (NYSE: MO), Cheesecake Factory (NASDAQ: CAKE), E*Trade (NASDAQ: ETFC), eBay (NASDAQ: EBAY), Quest Diagnostics (NYSE: DGX), St. Jude Medical (NYSE: STJ) and US Bancorp (NYSE: USB).

Analysts expect to see smaller earnings from Johnson Controls (NYSE: JCI), Noble Corp. (NYSE: NE) and Northern Trust (NASDAQ: NTRS) though. Another net loss is expected from AMR (NYSE: AMR), the parent company of American Airlines.

Thursday

The quarterly reports continue to roll out fast and furious on Thursday, highlighted by the following:

  • Philip Morris International (NYSE: PM): EPS up 18.0% to $1.22
  • Microsoft (NASDAQ: MSFT): EPS up 12.1% to $0.58
  • PepsiCo (NYSE: PEP): EPS up 9.1% to $1.21
  • AT&T (NYSE: T): EPS down 3.3% to $0.59
  • Morgan Stanley (NYSE: MS): a per-share loss of $0.62

Insurance giant Travelers (NYSE: TRV) is also expected to post a net loss. But the day's biggest earnings winners may be Freeport McMoRan Copper and Gold (NYSE: FCX) (due to demand from China) and steelmaker Nucor (NYSE: NUE) (a rumored takeover target). The consensus estimate for Freeport McMoRan calls for $1.37 per share, which is 45.3% higher than a year ago, as well as revenues of $5.8 billion. For Nucor, its $0.81 per share (up 64.2%) on revenues of $5.2 billion.

Others expected to post earnings growth on Thursday include BB&T (NYSE: BBT), Danaher (NYSE: DHR), Goodrich (NYSE: GR), Medco Health Solutions (NYSE: MHS), Safeway (NYSE: SWY), Sherwin-Williams (NYSE: SHW), Union Pacific (NYSE: UNP) and Whirlpool (NYSE: WHR).

Eli Lilly (NYSE: LLY), Sandisk (NASDAQ: SNDK) and United Continental Holdings (NYSE: UAL) are also expected to report smaller earnings, as compared to the same period of last year.

Friday

Caterpillar (NYSE: CAT) and McDonald's (NYSE: MCD) will highlight Friday reports. Here's what analysts predict:

  • Caterpillar: EPS up 39.1% to $1.79 and revenues 29.9% higher to $13.5 billion
  • McDonald's: EPS up 11.7% to $1.28 and revenues 11.6% higher to $6.6 billion

Look for earnings growth from Honeywell International (NYSE: HON) and Schlumberger (NYSE: SLB) as well. Per-share earnings from Verizon Communications (NYSE: VZ) are predicted to be marginally lower than a year ago.

Posted-In: altria American Airlines American ExpressEarnings Long Ideas Short Ideas Previews Trading Ideas Best of Benzinga

 

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