Market Overview

Earnings Expectations for the Week of July 8 (AA, JPM, WFC)

The new earnings season kicks off this week with the traditional first report from Alcoa (NYSE: AA) on Monday afternoon.

The first of the big banks, J.P. Morgan (NYSE: JPM) and Wells Fargo (NYSE: WFC), close out the week when they step into the earnings spotlight Friday morning. Analysts predict year-over-year earnings growth from all three of these reports.

Also look for quarterly results that week from Family Dollar Stores (NYSE: FDO) and Yum! Brands (NYSE: YUM).

See also: Weekly Preview: Alcoa Kicks Off Earnings Season

Alcoa

The world's third largest producer of aluminum is expected to say that earnings came to $0.06 per share for its second quarter. That would be the same as in the year-ago period. Revenues for the quarter are estimated to be more than two percent lower to $5.83 billion.

Note that this consensus EPS estimate is closer to the low end of the range of $0.04 to $0.12, and it has slipped in the past 60 days from $0.11. But Alcoa has not fallen short of EPS expectations in the past four quarters. Look for the earnings report Monday afternoon.

See also: Alcoa Earnings Preview: Lower Q2 Revenue, Flat EPS Expected

J.P. Morgan

In its report before the markets open Friday, J.P. Morgan is expected to post second-quarter earnings that were more than 15 percent higher than in the year-ago period to $1.43 per share. Note that the consensus estimate was $1.38 just 60 days ago. And J.P. Morgan beat EPS expectations by more than 12 percent in the previous four quarters.

Revenues from the largest bank in the United States by assets are predicted to total $24.75 billion for the most recent quarter. That would be about eight percent higher than a year ago. However, revenue and EPS for the current quarter are forecast to be lower year-over-year.

Wells Fargo

Second-quarter earnings from the largest bank in the United States by market cap are forecast to come to $0.92 per share in Friday morning's report. That would be up from $0.82 per share in the year-ago period. Earnings results were marginally better than expected in the in the previous four quarters.

The San Francisco-based bank is expected to say that revenues totaled $21.20 billion for the second quarter, or essentially flat relative to a year ago. Revenue for the current quarter is expected to be flat year-over-year as well.

Yum! Brands

The second-quarter forecast for the operator of the KFC, Taco Bell and Pizza Hut chains calls for per-share earnings of $0.54 on $2.93 billion in revenues. In the same quarter of the previous year, the Louisville, Kentucky-based company missed consensus EPS estimates when it posted $0.67 on sales of $3.17 billion.

The second-quarter EPS estimate is unchanged from 60 days ago. Yum! Brands exceeded the consensus EPS estimate by more than 16 percent back in the first quarter. Look for the earnings report Wednesday after the closing bell.

Family Dollar

Discount store operator Family Dollar is expected to report Wednesday before the markets open that for its fiscal third quarter it had $1.03 EPS and $2.57 billion in revenue. In the same period of the previous year, it posted $1.06 per share, while sales totaled $2.36 billion.

Family Dollar earnings have not topped analysts' expectations in the past four quarters. The consensus EPS estimate for the most recent quarter has ticked down by a penny in the past 60 days. But so far, growth in EPS is expected from the current quarter and the full fiscal year.

And Others

Other companies predicted to report year-over-year earnings growth this week include American Greetings (NYSE: AM), Fastenal (NYSE: FAST) and PriceSmart (NYSE: PSMT).

But earnings declines are expected from Bank of the Ozarks (NASDAQ: OZRK), Helen of Troy (NASDAQ: HELE), MSC Industrial Direct (NYSE: MSM), WD-40 Company (NASDAQ: WDFC) and Wolverine World Wide (NASDAQ: WWW).

The following week, the earnings crunch begins in earnest, with second-quarter reports due from Bank of America (NYSE: BAC), Coca-Cola (NYSE: KO), eBay (NASDAQ: EBAY), General Electric (NYSE: GE), Goldman Sachs (NYSE: GS), Google (NASDAQ: GOOG), Intel (NASDAQ: INTC), Johnson & Johnson (NYSE: JNJ), Microsoft (NASDAQ: MSFT) and many more.

Posted-In: Alcoa American Greetings Bank of America Bank of the Ozarks Coca-colaEarnings Previews Trading Ideas Best of Benzinga

 

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