Dow Components Rocking Earnings So Far (KO, JPM, UTX)

This morning we are seeing futures rise on the news from DJIA components being solid on the earnings front.  There are some mixed reactions, but we saw solid earnings in a tough environment out of Coca-Cola Co. (NYSE: KO), JPMorgan Chase (NYSE: JPM), and United Technologies Corp. (NYSE: UTX).

Coca-Cola Co. (NYSE: KO) managed to beat EPS targets by $0.05 with $1.01 per share on a 17% revenue jump to $9.05 Billion; First Call estimates were $0.96 EPS and $8.93 Billion in revenues.  The company said that its worldwide unit case volume rose by 3% in the quarter, with the breakdown being a 5% gain in International and essentially a "maintaining unit case volume" in North America.  The company called it a difficult operating environment.  Because of currency adjustments and because of the difficult environment, shares are indicated down 2% at $51.20 before the open.  Its 52-week trading range is $49.52 to $65.59.

JPMorgan Chase (NYSE: JPM) posted a more than 50% drop in net income to about $2 Billion or $0.54 EPS but that is above the $0.44 estimate from First Call.  The banking giant also took a $3.46 billion provision for credit losses, which included a $1.3 Billion gain for loss reserves.  Jamie Dimon is not raising the dividend but shares are indicated up over 4% at $37.65 before the open.  Its 52-week range $29.24 to $49.95.

United Technologies Corp. (NYSE: UTX) also beat its earnings targets with $1.38 EPS on a 12.5% gain to $15.67 Billion in revenues.  First Call had estimates at $1.30 and $15.33 Billion in revenues. The company issued mixed guidance for Fiscal-2008 as it sees $4.80 to $4.98 EPS, above prior target of $4.65-4.85 and above $4.89 estimates from First Call.  It also sees Fiscal-2008 revenues north of $60 Billion ($59.78 Billion consensus).  United Tech’s shares are trading up over 5% at $64.50 in pre-market trading.  Its 52-week trading range is $58.87 to $82.50.

Dow futures are up roughly 84 points at 11,290 in pre-market levels right before the open.

Jon C. Ogg
July 17, 2008