Market Overview

Earnings Expectations For The Week Of October 14: Financials, Tech and Consumer Goods

The third-quarter earnings crunch is underway this week.

The financial sector will be well represented, with quarterly reports due from the likes of Goldman Sachs and American Express, as well as the tech sector, highlighted by Google and Intel. Coca-Cola and Johnson & Johnson are among the many consumer goods and services companies stepping into the earnings spotlight this week.

See also: Weekly Preview: Earnings Season Gets Into Full Swing

Financials

Morgan Stanley (NYSE: MS) may be a winner in this category. Year-over-year, it is expected to have swung to a profit of $0.39 per share, with revenue up more than 45 percent. Goldman Sachs (NYSE: GS), on the other hand, is expected to post double-digit percentage declines in both earnings per share (EPS) and revenues.

The forecast for Bank of America (NYSE: BAC) calls for EPS of $0.18, compared to break-even in the year-ago period, as well as revenue growth of almost eight percent. Citibank (NYSE: C), Bank of New York Mellon (NYSE: BK) and M&T Bank (NYSE: MTB) also are expected to post higher revenues, but with declines in EPS. However, EPS from U.S. Bancorp (NYSE: UBS) are forecast to be higher while revenues were lower.

Both revenue and EPS for American Express (NYSE: AXP) are expected to be higher than a year ago, while analysts see declines in both the top and bottom lines from Capital One (NYSE: COF).

Analysts also are looking for improved results from investment managers Blackrock (NYSE: BLK) and Blackstone (NYSE: BX) when they report this week.

Technology

Internet and tech giant Google (NASDAQ: GOOG) is expected to have strong results when it reports Thursday. The forecast calls for EPS up more than 12 percent year-over-year to $10.35 on revenue that is more than 30 percent higher to $14.80 billion.

The forecast for IBM (NYSE: IBM) has EPS up more than eight percent from a year ago, but on revenue that slipped marginally to $24.73 billion. IBM reports late Wednesday.

Quarterly revenue for Intel (NASDAQ: INTC) is likewise expected to have slipped a bit, but with EPS that are down more than eight percent. SanDisk (NASDAQ: SNDK), on the other hand, is projected to say that EPS more than doubled from a year ago and revenue was up more than 23 percent.

The consensus estimates for both the top and bottom lines from Yahoo! (NASDAQ: YHOO) are marginally lower than a year ago. It reports Tuesday after the markets close.

Analysts are looking for earnings and revenue growth from Verizon Communications (NYSE: VZ) when it reports Thursday. And they are hoping that Nokia's (NYSE: NOK) EPS broke even in the third quarter, compared to net losses per share in the previous two periods and in the year-ago quarter.

See also: Short Sellers Pile On Facebook and Google

Consumer Goods and Services

Per-share earnings for Coca-Cola (NYSE: KO) are expected to be marginally higher year-over-year to $0.53, while those in PepsiCo (NYSE: PEP) are marginally lower to $1.17. Third-quarter revenue for Coke and Pepsi are expected to be marginally lower and marginally higher, respectively.

The forecast for Philip Morris (NYSE: PM) has EPS up less than four percent and revenue essentially the same as in the year-ago period. Analysts are looking for top line and bottom line growth from Johnson & Johnson (NYSE: JNJ) and Mattel (NASDAQ: MAT).

Year-on-year earnings growth of more than 10 percent is forecast for both Snap-on (NYSE: SNA) and Stanley Black & Decker (NYSE: SWK). Revenue growth from both tool makers is expected to come in at less than five percent.

A more than 50 percent decline in revenues is predicted for struggling supermarket operator SUPERVALU (NYSE: SVU) when it reports Thursday morning. Chipotle Mexican Grill (NYSE: CMG) is expected to post strong results: EPS up more than 18 percent and sales growth of about 17 percent.

If analysts are correct, online retailer eBay (NASDAQ: EBAY) will say Wednesday that its EPS increased more than 12 percent to $0.63 and sales grew more than 14 percent from a year ago to $3.9 billion.

The forecast for Las Vegas Sands (NYSE: LVS) calls for EPS to have grown almost 38 percent while revenue increased more than 26 percent, though EPS fell short of consensus estimates in three of the past four quarters.

Posted-In: American Express Bank of America Bank of New York Mellon BlackrockEarnings News Previews Trading Ideas Best of Benzinga

 

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