Earnings Expectations for the Week of February 4
The S&P ended last week above 1,500 and the Dow Jones Industrial Average above 14,000. Some strong earnings reports could push the markets higher, and there are plenty of quarterly reports on the schedule this week.
Analysts by and large expect to see year-over-year earnings per share (EPS) growth from AOL (NYSE: AOL), Apollo Global Management (NASDAQ: APOL), Baidu (NASDAQ: BIDU), Chipotle Mexican Grill (NYSE: CMG), Cigna (NYSE: CI), Clorox (NYSE: CLX), Coca-Cola Enterprises (NYSE: CCE), Estee Lauder (NYSE: EL), Expedia (NASDAQ: EXPE), Gannett (NYSE: GCI), Green Mountain Coffee Roasters (NASDAQ: GMCR), Hasbro (NASDAQ: HAS), Kellogg (NYSE: K), News Corp. (NASDAQ: NWSA), Phillip Morris (NYSE: PM), Ralph Lauren (NYSE: RL) and Take-Two Interactive (NASDAQ: TTWO).
But a decline in per-share earnings is anticipated from Coinstar (NASDAQ: CSTR), CME (NASDAQ: CME), Humana (NYSE: HUM), KKR (NYSE: KKR), Marathon Oil (NYSE: MRO), NYSE Euronext (NYSE: NYX), Prudential Financial (NYSE: PRU), Starwood Hotels & Resorts (NYSE: HOT) and True Religion Apparel (NASDAQ: TRLG). And a net loss for the most recent quarter is expected from Allstate (NYSE: ALL).
Here is a quick look at what analysts expect to see from some of the most prominent reports due this week.
Archer Daniels Midland
Second-quarter fiscal 2013 earnings from agriculture giant Archer Daniels Midland (NYSE: ADM) are expected to come to $0.56 per share, on revenues of $23.67 billion. In the same quarter of the previous year, the company fell short of EPS estimates when it posted $0.45 per share and $23.31 billion in sales. Earnings have fallen short of consensus estimates in two of the past four quarters. The company is scheduled to share its results Tuesday before the opening bell.
Fourth-quarter earnings from pharmacy and drug store operator CVS Caremark (NYSE: CVS) are forecast to come to $1.10 per share in Wednesday morning's report, while revenues totaled $31.13 billion. In the same quarter of last year, the company matched EPS estimates when it posted $0.89 per share and $28.32 billion in revenues.
Analysts on average expect to see $3.40 EPS on revenue of $122.88 billion for the full year. In the previous year, EPS were $2.80 while revenues totaled $107.10 billion. That EPS estimate, like the quarterly one, is unchanged in the past 60 days.
For the first quarter of fiscal 2013, which included the holiday shopping season, Walt Disney (NYSE: DIS) is expected to post earnings of $0.76 per share, while revenues totaled $11.21 billion. In the same quarter of last year, the company reported greater-than-expected EPS of $0.80 per share and $10.78 billion in sales. Note that the consensus EPS estimate has slipped in the past 60 days from $0.78. Look for the earnings report Tuesday afternoon.
Net losses of $0.46 per share for the fourth quarter and $1.46 per share for the full year are anticipated when Sprint Nextel (NYSE: S) shares its results Thursday before the markets open. Both of those losses would be deeper than in the previous year.
But revenues are forecast to have grown year-over-year, more than two percent to $8.92 billion for the quarter and more than four percent to $35.27 billion for the full year.
In its report Wednesday morning, media giant Time Warner (NYSE: TWX) is expected to post earnings of $1.10 per share for the fourth quarter and $3.21 per share for the full year. That would be up more than 14 percent and about ten percent, respectively. Time Warner regularly exceeds the consensus quarterly EPS estimates.
Quarterly revenues are forecast to total $8.25 billion, which would be only marginally higher than a year ago. The full-year revenues also are expected to have slipped marginally to $28.87 billion.
Visa (NYSE: V), the San Francisco-based payments technology company, is expected to report Wednesday afternoon that for its fiscal first quarter it saw a profit of $1.79 per share. That would be more than 16 percent higher than in the same period in the previous year. But analysts have underestimated EPS in the past ten quarters. The revenue forecast calls for $2.82 billion, which would be more than 10 percent higher than in the year-ago quarter.
Louisville, Kentucky-based fast-food chain operator Yum! Brands (NYSE: YUM) is expected to report Monday afternoon that for its fourth quarter it had a profit of $0.82 per share. That would be up from $0.75 per share in the same period of the previous year. And analysts on average expect quarterly revenues to total $4.12 billion, which would be essentially the same as a year ago.
The full-year forecast calls for EPS up more than 11 percent year-over-year to $3.24 on revenues that are more than seven percent higher to $13.59 billion.
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