Earnings Expectations for the Week of October 29
Recent earnings disappointments from tech giants like Apple (NASDAQ: AAPL), Google (NASDAQ: GOOG) and Microsoft (NASDAQ: MSFT), as well as industrials such as Caterpillar (NYSE: CAT) and DuPont (NYSE: DD), have taken their toll. The S&P 500 is down about three percent in the past three weeks.
But plenty of high expectations remain, demonstrated by the analysts forecasts that the following companies will post strong year-over-year earnings growth, as well as revenue growth, in their reports this week: Allstate (NYSE: ALL), Baidu (NASDAQ: BIDU), Boston Beer (NYSE: SAM), Hartford Financial (NYSE: HIG), MetLife (NYSE: MET), MetroPCS Communications (NYSE: PCS), Priceline.com (NYSE: PCLN), Starbucks (NASDAQ: SBUX) and Time Warner Cable (NYSE: TWC).
But not all is rosy. Analysts anticipate earnings declines from ADM (NYSE: ADM), Chevron (NYSE: CVX), Clorox (NYSE: CLX), Ford (NYSE: F), Ralph Lauren (NYSE: RL) and the Washington Post (NYSE: WPO), as well as net losses from Martha Stewart Living Omnimedia (NYSE: MSO) and MGM Resorts (NYSE: MGM).
Here is a quick run-down of what analysts expect from some of the most prominent quarterly reports on this week's schedule.
American International Group (NYSE: AIG). The consensus forecast calls this New York-based insurer to have swung from a year-ago net loss of $1.60 per share to a profit of $0.86 per share. That consensus estimate has grown in the past 60 days from $0.66 per share. But analysts see revenue dropping more than three percent year-over-year to $8.70 billion. Look for AIG's report Thursday after the closing bell.
Archer Daniels Midland (NYSE: ADM). Analysts on average expect this food processing giant to report Tuesday morning that its per-share earnings fell by nearly 50 percent to $0.35 and revenue totaled $22.00 billion, essentially flat year-over-year. That EPS estimate declined over the past 60 days from $0.50 per share.
Exxon Mobil (NYSE: XOM). The consensus forecast calls for EPS down about eight percent year-over-year to $1.96 and sales more than 10 percent lower to $112.40 billion. But the oil and gas giant fell short of consensus EPS estimates in three of the past five quarters. Exxon reports Thursday before the markets open.
Ford (NYSE: F). This Big Three automaker is expected to post $0.30 per share earnings and sales of $31.08 billion. That would be down from $0.34 per share and $31.10 billion in revenue in the same period of last year. Note that the consensus EPS estimate was $0.28 just 30 days ago. Ford is scheduled to share its results Tuesday morning.
Kellogg (NYSE: K). Earnings from this maker of Pop-Tarts and Rice Krispies are expected to be $0.80 per share, or flat year-over year. That EPS estimate is unchanged over the past 60 days. However, sales are predicted to be 11.5 percent higher than a year ago to $3.69 billion. Kellogg is on tap to report Thursday before the opening bell.
MasterCard (NYSE: MA). Analysts on average anticipate this financial services company will say Wednesday morning that its most recent EPS were about five percent higher year-over-year to $5.93. Its revenue is predicted to have risen more than six percent to $1.94 billion. MasterCard topped consensus EPS estimates in the past 10 quarters.
MetLife (NYSE: MET). The consensus forecast calls for earnings to be about 13 percent higher than a year ago to $1.28 per share on revenue that is up marginally to $17.15 billion. The New York-based life insurer exceeded analysts' consensus EPS estimates in the previous four quarters. The company steps into the earnings spotlight Wednesday afternoon.
Visa (NYSE: V). This payments technology company is expected to offer up $1.50 per share earnings and $2.67 billion in revenue. That would be up from $1.27 per share and revenue of $2.38 billion in the year-ago period. Analysts regularly underestimate Visa's per-share earnings. The company is scheduled to share its results Wednesday afternoon.
Retail earnings come into focus the following week, with reports due from CVS Caremark (NYSE: CVS), JCPenney (NYSE: JCP), Kohl's (NYSE: KSS), Macy's (NYSE: M), Nordstrom (NYSE: JWN) and Whole Foods Market (NYSE: WFM).
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