Market Overview

Earnings Expectations for the Week of January 23


The earnings crunch rolls on this week. Among those scheduled to step into the spotlight are Apple (NASDAQ: AAPL), Caterpillar (NYSE: CAT), Chevron (NYSE: CVX), McDonald's (NYSE: MCD) and Starbucks (NASDAQ: SBUX). Analysts expect them post year-over-year earnings growth. AT&T (NYSE: T), Boeing (NYSE: BA), DuPont (NYSE: DD), Netflix (NASDAQ: NFLX) and Procter & Gamble (NYSE: PG) are expected to report a decline in per-share earnings.

Here's a day-by-day rundown of what analysts expect from some of the week's most prominent earnings reports.


Halliburton's (NYSE: HAL) fourth-quarter earnings are expected to be up 31.3% from a year ago to $0.99 per share, while the full-year EPS forecast is $3.35, or 38.5% higher. Also, revenues are expected to be up more than 30% for both the quarter and the full year. Analysts have underestimated Halliburton's earnings for the past ten quarters.

Analysts also are looking for increased EPS from railroads CSX (NYSE: CSX) and Kansas City Southern (NYSE: KSU), as well as from Crane (NYSE: CR) and Zions Bancorp. (NASDAQ: ZION). But tech companies Texas Instruments (NASDAQ: TXN) and Western Digital (NYSE: WDC) are expected to post earnings declines on Monday.


Apple (NASDAQ: AAPL) reports fiscal first-quarter results Tuesday afternoon. The consensus forecast calls for $10.07 per share earnings. That is up from an estimate of $9.72 some 60 days ago, and from earnings of $6.43 per share in the same quarter of last year. Revenues for the quarter are anticipated to be 44.9% higher than a year ago, or $38.7 billion.

See also: Did Apple Just Reinvent the Textbook Industry?

Earnings from McDonald's (NYSE: MCD) are estimated to total $1.29 per share, on revenues of $6.8 billion. That would be up from $1.16 and $6.2 billion in the same quarter of last year. Full-year earnings also are predicted to be up 12.0% to $5.24 per share and revenues 12.1% higher to $27.0 billion.

Johnson & Johnson's (NYSE: JNJ) EPS for the most recent quarter are forecast to have crept up seven cents a share from a year ago to $1.10, while revenues have risen 4.1% to $16.3 billion. Analysts underestimated per-share earnings of this health care giant in the previous three quarters.

Struggling Yahoo! (NASDAQ: YHOO), which saw cofounder Jerry Yang leave the company last week, is expected to report EPS and revenue results that are essentially the same as in the fourth-quarter of last year.

See also: How to Profit from the Chief Yahoo!'s Departure

Verizon Communications (NYSE: VZ) is also expected to post EPS about the same as a year ago. But earnings growth is predicted when Advanced Micro Devices (NYSE: AMD), Coach (NYSE: COH), Harley-Davidson (NYSE: HOG), Kimberly-Clark (NYSE: KMB) and Peabody Energy (NYSE: BTU) post quarterly results on Tuesday.

DuPont (NYSE: DD) and insurance giant Travelers Companies (NYSE: TRV) are expected to say that EPS declined in the fourth quarter.


Wednesday's highlights will include fourth-quarter results from Boeing (NYSE: BA) and Netflix (NASDAQ: NFLX). Per-share earnings for both are expected to have fallen year-over-year by more than 35%. But the aerospace giant is also expected to post revenues that are 17.2% higher, while revenues for the streaming video and DVD-by-mail provider are predicted to have risen 43.9% year-over year. Both companies have topped consensus EPS estimates in the past four quarters.

See also: Airbus Leads Boeing as Top Aircraft Producer but Boeing Could Be a Better Value

Lower per-share earnings are forecast for US Airways (NYSE: LCC) as well.

Oil companies ConocoPhillips (NYSE: COP), Hess (NYSE: HES), Murphy Oil (NYSE: MUR), Noble (NYSE: NE) and Occidental Petroleum (NYSE: OXY) are all scheduled to post results on Wednesday. Analysts are predicting earnings growth from each of them, between 9.8% (Hess) and 35.3% (Murphy Oil). But Conoco and Murphy are expected to say that revenues fell, while the others post higher revenues.

Wednesday's other anticipated earnings winners include Automatic Data Processing (NYSE: ADP), E*Trade Financial (NASDAQ: ETFC), General Dynamics (NYSE: GD), St. Jude Medical (NYSE: STJ), Stanley Black and Decker (NYSE: SWK), United Technologies (NYSE: UTX) and Xerox (NYSE: XRX).


Caterpillar's (NYSE: CAT) fourth-quarter earnings are expected to be up 15.0% year over year to $1.73 per share. The consensus forecast for full-year EPS is $6.81, or 39.1% higher. Note that Caterpillar has only fallen short of EPS estimates in one of the past six quarters. Also, revenues are expected to be up more than 25% for both the quarter and the full year.

Earnings from Starbucks (NASDAQ: SBUX) are estimated to total $0.48 per share, and revenues to total $3.3 billion. That would be up from $0.45 and $2.9 billion in the same quarter of the previous year. Full-year earnings are predicted to be 16.9% higher to $1.83 per share and revenues to be up 11.2% to $13.0 billion.

Also forecast to post earnings growth: Bristol-Myers Squibb (NYSE: BMY), Colgate-Palmolive (NYSE: CL), Sherwin-Williams (NYSE: SHW), 3M (NYSE: MMM) and Time Warner Cable (NYSE: TWC).

AT&T's (NYSE: T) per-share earnings for the most recent quarter are forecast to have fallen a dime from a year ago to $0.45. Revenues, though, are expected to have risen 1.9% to $31.9 billion. EPS have not fallen short of consensus expectations in the past six quarters.

Analysts expect AT&T to be joined by DeVry (NYSE: DV), Lockheed Martin (NYSE: LMT), Motorola Mobility (NYSE: MMI) and Raytheon (NYSE: RTN) in posting declining earnings on Thursday.


End-of-the-week highlights include quarterly results from Chevron (NYSE: CVX) and Procter & Gamble (NYSE: PG). The forecast for the former is $2.92 per share earnings (up 16.4%) and $71.1 billion in revenues (up 37.1%). The latter is expected to post $1.08 per share earnings (down 4.4%) and $22.2 billion in revenues (up 4.0%). Consensus EPS estimates for both companies have fallen over the past 90 days.

Homebuilder DR Horton (NYSE: DHI) is expected to post a profit, compared to a year-ago loss. Altria (NYSE: MO), Dominion Resources (NYSE: D), Honeywell International (NYSE: HON) and Newell Rubbermaid (NYSE: NWL) are anticipated to report year-over-year earnings growth as well.

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