Earnings Expectations For The Week Of July 14: Big Banks, Tech Giants And More
After Alcoa (NYSE: AA) and Wells Fargo (NYSE: WFC) kicked off the second-quarter earnings season last week, things ramp up this week with reports from many of the big banks, some tech giants and other blue-chips.
Citigroup (NYSE: C), Goldman Sachs (NYSE: GS) and J.P. Morgan (NYSE: JPM) get things rolling in the financial sector in their reports early in the week. The consensus forecasts for all three call for earnings per share (EPS) declines of at least 17 percent from the year-ago period, as well as revenues that are more than seven percent lower.
When they report Wednesday morning, Bank of America (NYSE: BAC) and PNC Financial Services (NYSE: PNC) will also offer up year-over-year declines on the top and bottom lines, if analysts are correct. Results from U.S. Bancorp (NYSE: USB) are expected to be about the same as a year ago, but a gain of more than seven percent in EPS and less than six percent in revenue is anticipated from Northern Trust (NASDAQ: NTRS).
Then late in the week, more declines on the top and bottom lines are forecast for Bank of New York Mellon (NYSE: BK), Capital One Financial (NYSE: COF) and Fifth Third Bancorp (NASDAQ: FITB). A 19 percent gain in EPS, relative to a year ago, is expected from Morgan Stanley (NYSE: MS), but along with a marginal decline in revenue.
Reports from Google (NASDAQ: GOOGL) and Yahoo! (NASDAQ: YHOO) will be among the highlights from tech companies. Analysts are looking for gains of more than 23 percent in EPS and almost 11 percent in revenue from the former. Year-over-year growth at the latter will be more modest -- almost eight percent and a little more than one percent, respectively -- if analysts are accurate.
Rival semiconductor makers Advanced Micro Devices (NYSE: AMD) and Intel (NASDAQ: INTC) also step into the earnings spotlight this week. A small profit is predicted for AMD, compared to a year-ago net loss. A 25 percent gain in EPS is expected from Intel. Revenue at both is forecast to be higher than a year ago, by almost 24 percent for AMD but less than seven percent for Intel.
Highlights from the health care sector include Johnson & Johnson (NYSE: JNJ) share results early Tuesday, Abbott Labs (NYSE: ABT) early on Wednesday and UnitedHealth (NYSE: UNH) Thursday morning. Revenue is expected to be marginally higher at Abbott, but up more than five percent from the other two. EPS is forecast to have declined 10 percent at UnitedHealth but to be up more than five percent at the othes.
The consensus forecast for midstream energy company Kinder Morgan (NYSE: KMI) calls for marginal growth in EPS from a year ago, but a gain of almost 12 percent in revenue in Wednesday's report. Oilfield services giants Baker Hughes (NYSE: BHI) and Schlumberger (NYSE: SLB) report on Thursday. Top line growth of less than seven percent is predicted from both of them. In EPS, gains of more than 32 percent and 14 percent, respectively, are expected.
Fast-food chain operator YUM! Brands (NYSE: YUM) is expected to say its EPS were more than 24 percent higher and sales were up almost 12 percent in the quarter. The forecast for Philip Morris International (NYSE: PM) has EPS down more than four percent, on revenue that is five percent lower.
And to end the week General Electric (NYSE: GE), sometimes seen as a bellwether of the broader economy, is expected to say that its per-share earnings increased more than seven percent from the same period a year ago. Revenue is anticipated to be higher as well, but by less than four percent.
The earnings crunch is in full swing the following week. Look for reports from the likes of Apple, Boeing, Coca-Cola, Facebook, McDonald's, Netflix and many, many more.
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