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Earnings Expectations for the Week of July 11

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The new earnings season kicks off this week when Alcoa (NYSE: AA) and Novellus (NASDAQ: NVLS) report second-quarter results on Monday after the closing bell. That is followed by Marriott (NYSE: MAR) and Yum! Brands (NYSE: YUM) on Wednesday, JPMorgan (NYSE: JPM) and Google (NASDAQ: GOOG) on Thursday, and Citigroup (NYSE: C) on Friday. Analysts have forecast earnings growth from them all, which if they are correct should get the new earnings season off to a good start.

Here is a glance at consensus earnings expectations for some of this week's most anticipated quarterly reports:

Alcoa (NYSE: AA): earnings per share up 59.4% year-over-year to $0.32
Valmont Industries (NYSE: VMI): EPS up 24.1% to $1.45
Fastenal (NASDAQ: FAST): EPS up 20.0% to $0.30
Google (NASDAQ: GOOG): EPS up 17.9% to $7.86
ADTRAN (NASDAQ: ADTN): EPS up 16.8% to $0.53
Marriott (NYSE: MAR): EPS up 16.2% to $0.37
Wolverine World Wide (NYSE: WWW): EPS up 15.2% to $0.46
Novellus (NASDAQ: NVLS): EPS up 13.2% to $0.76
Mattel (NASDAQ: MAT): EPS up 12.5% to $0.16
Genuine Parts (NYSE: GPC): EPS up 12.4% to $0.89
JPMorgan Chase (NYSE: JPM): EPS up 10.7% to $1.22
Citigroup (NYSE: C) (NYSE: GPC): EPS up 7.2% to $0.97
Yum! Brands (NYSE: YUM): EPS up 4.9% to $0.61

For more on expectations for Alcoa, see our Alcoa earnings preview. And for more on Novellus, see our Novellus earnings preview.

Google

This Mountain View, California-based Internet giant is forecast to post second-quarter earnings of $7.86 per share on revenues of $6.5 billion. That is up from $6.45 per share and $5.1 billion in the same period of last year. Google topped earnings estimates in three of the past five quarters but fell short in the other two. So far analysts anticipate sequential and year-over-year growth of both per-share earnings and revenues in the current quarter.

The long-term earnings per share growth forecast is 17.8% and the return on equity is 20.8%. During the three months that ended in June, Google launched its Chrome 12 browser and Google+, which competes with Facebook. Analysts have a mean price target of $701.48 per share, which gives the stock plenty of room to run from $531.99 per share at Friday's close. But shares have fallen more than 10% since the beginning of the year. While the stock has underperformed the broader markets in that time, it has outperformed its industry average and competitor Aol (NYSE: AOL).

JPMorgan

Analysts are looking for this leading U.S. bank to report second-quarter earnings of $1.22 per share on revenues of $25.2 billion. That compares to $1.09 per share and $25.6 billion in the same period of last year. Revenue is expected to grow again in the current quarter, for which analysts expect similar annual EPS growth. Note that analysts have underestimated JPMorgan's per-share earnings in the past seven quarters.

This New York-based financial giant has a dividend yield of 0.9% and a PEG ratio of 0.9. Its price-to-earnings ratio is less than the banking industry average and the S&P 500. During the three months that ended in June, JPMorgan announced some changes in leadership and raised its commitment to small-business lending. Analysts on average recommend buying the stock, and they have a mean price target of $54.57 per share. The share price ended the week at $40.74 after falling about 13% in the past three months. While the stock has underperformed the broader markets in that time, it has outperformed competitors Bank of America (NYSE: BAC) and Barclays (NYSE: BCS).

Marriott

The consensus forecast is that this leading global hotelier will report second-quarter per-share earnings of $0.37, which is up from $0.31 per share in the same period of last year. Analysts also expect to see revenues of $3.0 billion, an increase of 8.9% from a year ago. Note that Marriott missed consensus earnings estimates by a penny per share in the first quarter, the only earnings miss in the past nine quarters. And analysts are looking for year-over-year growth of both EPS and revenues in the current quarter as well.

Marriott boosted its dividend and its stock buyback program, and also filed to spin off its vacation club business, during the three months that ended in June. The company has a dividend yield of 0.6% and a return on equity of 32.9%. The long-term earnings per share growth forecast is 12.8%. Analysts have a mean price target on the stock of $42.48 per share. That gives shares room to run from the current price of $37.17. Shares have risen more than 7% in the past month but are still more than 10% lower than at the beginning of the year. The stock has underperformed the lodging industry average and the broader markets year to date.

 

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