Market Overview

Earnings Expectations for the Week of July 23

Earnings Expectations for the Week of July 23

The earnings crunch rolls on. Analysts are looking for strong earnings growth in this week's quarterly reports from Apple, Caterpillar, Starbucks and Visa. But ConocoPhillips, Ford and Netflix are among those expected to post significantly lower per-share earnings, compared to the same period of a year ago.

Here is a day-by-day rundown of expectations for some of this week's most anticipated reports.


The forecast for McDonald's (NYSE: MCD) has second-quarter earnings per share (EPS) just three cents higher than a year ago to $1.38. And revenue is expected to total $6.9 billion, which is about the same as a year ago. Note that the consensus EPS forecast has slipped from $1.42 in the past 60 days.

Also on Monday, Hasbro (NASDAQ: HAS) and Texas Instruments (NASDAQ: TXN) are expected to post EPS that are more than 26 percent lower than a year ago, as well as lower revenue. EPS from Halliburton (NYSE: HAL) are anticipated to be down less than 8 percent year over year. But the oilfield provider's revenue is expected to have jumped more than 17 percent.


Apple's (NASDAQ: AAPL) third-quarter fiscal 2012 report will be the highlight on Tuesday. The consensus forecast calls for EPS of $10.35 on revenue of $37.2 billion. That would be up from $7.79 per share and $28.5 billion in the year-ago quarter. For the full year, analysts so far expect EPS to be about 19 percent higher and revenue to be up nearly 49 percent. Note that Apple fell short of EPS expectations in one of the past five quarters.

EPS from ostensible economic bellwether United Parcel Service (NYSE: UPS) are predicted to be about 8.5 percent higher year over year, while those of AT&T (NYSE: T) and DuPont (NYSE: DD) are more than 4.5 percent higher. Netflix (NASDAQ: NFLX), on the other hand, is expected to report that per-share earnings fell about 96 percent, despite a more than 12 percent rise in revenue.

Aflac (NYSE: AFL), Norfolk Southern (NYSE: NSC), Reynolds American (NYSE: RAI) and Rockwell Collins (NYSE: COL) are expected to report earnings growth Tuesday. Lower EPS are anticipated from Lockheed Martin (NYSE: LMT) and Whirlpool (NYSE: WHR).


Ford Motor (NYSE: F) and PepsiCo (NYSE: PEP) are scheduled to report second quarter results before the opening bell. The Big Three automaker is expected to report that EPS fell more than 42 percent to $0.28. Earnings from the soft drink and snack company are anticipated to be about 9 percent lower than a year ago to $1.10 per share. Revenue from both are predicted to have slipped as well. PepsiCo has not fallen short of estimates in recent quarters, but Ford has.

Double-digit percentage year-over-year EPS growth is anticipated from Caterpillar (NYSE: CAT) (to $2.28), Visa (NYSE: V) (to $1.45) and Whole Foods Market (NASDAQ: WFM) (to $0.61). But analysts foresee lower EPS from Boeing (NYSE: BA), Bristol-Myers Squibb (NYSE: BMY) and ConocoPhillips (NYSE: COP). Revenue from Conoco is expect to have fallen about 86 percent.

Others predicted to offer higher EPS Wednesday include Delta Air Lines (NYSE: DAL), WellPoint (NYSE: WLP) and Wyndham Worldwide (NYSE: WYN). Year-over-year earnings declines are forecast for Corning (NYSE: GLW), Eli Lilly (NYSE: LLY), General Dynamics (NYSE: GD) and Northrop Grumman (NYSE: NOC).


Exxon Mobil (NYSE: XOM) steps into the spotlight Thursday. Analysts are looking for earnings of $1.95 per share and revenue of $115.0 billion. That would be down from $2.18 per share on $125.5 billion in the same period of the previous year. The EPS estimate has also slipped from $2.09 some 60 days. And Exxon fell short of consensus estimates in two of the past four quarters.

Year-over-year earnings growth of at least 8 percent is anticipated from Hershey (NYSE: HSY) and Starbucks (NASDAQ: SBUX). But's (NASDAQ: AMZN) profit is expected to have plunged about 95 percent despite a 30 percent rise in revenue. And Sprint Nextel (NYSE: S) is expected to post another in a series of quarterly net losses stretching back to the beginning of 2008.

Others predicted to report earnings growth on Thursday include Colgate-Palmolive (NYSE: CL), Covidien (NYSE: COV), Dr Pepper Snapple (NYSE: DPS), Kimberly-Clark (NYSE: KMB) and Starwood Hotels & Resorts (NYSE: HOT).

Per-share earnings from Raytheon (NYSE: RTN), New York Times (NYSE: NYT) and United Technologies (NYSE: UTX) are anticipated to be about the same as a year ago. But those from CME Group (NASDAQ: CME), Dow Chemical (NYSE: DOW), Noble Energy (NYSE: NBL) and Occidental Petroleum (NYSE: OXY) and forecast to be lower than a year ago.


Chevron (NYSE: CVX), like Exxon and Conoco, is expected to says that EPS are lower than a year ago, in this case by more than 16 percent. Per-share earnings from Newell Rubbermaid (NYSE: NWL) are predicted to be the same as a year ago, though revenue has slipped by about 3 percent. Earnings and revenue growth are forecast for Newmont Mining (NYSE: NEM). And analysts expect Merck (NYSE: MRK) to say that its Q2 EPS were about 6 percent higher while its revenue was flat year over year.

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