Earnings season is upon us and this week will mark the beginning of the flood of earnings reports.  The most important earnings we are tracking will be from Apple Inc. (NASDAQ: AAPL), International Business Machines Corp. (NYSE: IBM), Goldman Sachs Group Inc. (NYSE: GS), Wells Fargo & Company (NYSE: WFC), UnitedHealth Group Inc. (NYSE: UNH), Union Pacific Corporation (NYSE: UNP), Google Inc. (NASDAQ: GOOG), Air Products and Chemicals Inc. (NYSE: APD), Airgas, Inc. (NYSE: ARG), Bank of America Corporation (NYSE: BAC), General Electric Co. (NYSE: GE), and Schlumberger Ltd. (NYSE: SLB).

Apple Inc. (NASDAQ: AAPL) reports after the close on Tuesday and unfortunately the entire scenario has changed now that Steve Jobs is on a medical leave of absence again.  Analysts have defended the stock this morning and estimates are $5.38 EPS and $24.38 billion in revenues.  Estimates for the next quarter are $4.43 EPS and $20.62 billion in revenues.  Before the Jobs news took a bite out of the Apple, shares hit a high on Friday of $348.48 versus $322.56 at the end of December.  The 2010 gain was more than 50% but the stock had effectively been stuck in a range of $310 to $325 for most of the last quarter before the 2011 run came back.

International Business Machines Corp. (NYSE: IBM) is due after the close on Tuesday.  Big Blue’s expectations are $4.08 EPS and $28.26 billion in revenues.  For the Q1-2011 the estimates are $2.23 EPS and $23.66 billion in revenues.  In case Apple offer’s long-term guidance, the consensus estimates for all of 2011 are $12.58 EPS and $103.14 billion in revenues.  Shares hit yet another all-time high of $150.95 today versus under $140 per share back in October.  We always track the services backlog to judge future revenues and that figure stood at $134 billion at the end of its third quarter.  We’ll also be paying attention to what IBM says about currency adjustments and how much is being allocated for shares buybacks.

Goldman Sachs Group Inc. (NYSE: GS), king of the brokerage firms, is due with its earnings Wednesday morning.  Estimates are $3.79 EPS on roughly $9 billion in revenues.  Shares are flirting with $175 again, and the stock traded above $180 in April of 2010 before the pre-summer correction took shares almost down to $130.  Shares have risen from under $155 over the last 90-days.

Wells Fargo & Company (NYSE: WFC), Warren Buffett’s favorite bank, reports Wednesday morning as well and estimates are $0.61 EPS and $21 billion in revenues.  Wells Fargo is above $32 and the 52-week highs north of $34.00 were seen in April and May of 2010.

On Thursday comes the earnings report from the poster-child of U.S. health care via UnitedHealth Group Inc. (NYSE: UNH).  The insurance giant is expected to post $0.84 EPS and $23.74 billion in revenues.  Shares hit a new year high of $40.99 on Tuesday morning, up more than 40% from the $28 lows of last summer.

We will get to see the state of the US transportation and shipping segment when Union Pacific Corporation (NYSE: UNP) reports earnings on Thursday.  Estimates are $0.84 EPS and $23.74 billion in revenues.  With shares above $98.00, the stock has risen from under $85.00 just 90-days ago.  Shares were under $70 last summer.

Google Inc. (NASDAQ: GOOG) reports Thursday after the closing bell.  Estimates are $8.07 EPS and $6.05 billion in revenues.  Google holds back on formal guidance, but estimates for Q1-2011 are $7.97 EPS and $6.06 billion in revenues.  Shares are back above $630.00 after this morning’s gain and a $634.00 level marked a new 52-week high.  That is up from under $560 at the end of November, but it is not really up that much at all from 90 days ago.  Shares were trading down around $450 at the lows of the last summer.

Friday morning brings the perpetual merger story of both Air Products and Chemicals Inc. (NYSE: APD) and Airgas, Inc. (NYSE: ARG).  Air Products is expected to post $1.34 EPS and $2.35 billion in revenues.  Airgas is expected to report $0.79 EPS and $1.03 billion in revenues.  These would not be the most important earnings for the week if it were not for the never-ending merger saga.

Bank of America Corporation (NYSE: BAC) is due Friday morning and estimates are $0.15 EPS and $24.98 billion in revenues.  With shares back above $15.00, BofA was flirting with $11.00 per share just at the end of November as its mortgage mess surfaced.  Shares would have to go up to $19 before it gets close to a 52-week high.

General Electric Co. (NYSE: GE) will mark the economic and conglomerate report day on Friday morning.  Its earnings expectations are $0.32 EPS and $39.9 billion in revenues.  For the Q1-2011 earnings, the estimates are $0.29 EPS and $33.75 billion in revenues.  GE shares are getting close to $19 with a price of $18.85 today and the conglomerate was trading under $16.00 as recently as the end of November.

Schlumberger Ltd. (NYSE: SLB) will mark the beginning of the oil services companies.  Estimates are $0.77 EPS and $8.68 billion in revenues.  Shares are above $86 and close to year highs and note that this stock has risen more than $20 per share in just the last quarter.

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JON C. OGG

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