DJIA Component Earnings Trifecta (DD, MRK, UTX)

So far we have three DJIA components with earnings out.  DuPont (NYSE: DD), Merck & Co. (NYSE: MRK), United Technologies (NYSE: UTX) have all posted earnings.  So far there are no train wrecks and technically these are above the Thomson Reuters consensus estimates as far as the earnings per share numbers numbers are concerned.  All details are below.

DuPont (NYSE: DD) posted $0.61 EPS vs. $0.53 estimates, much is on cost cuts.  Revenues fell 22% to $6.86 billion vs. the $7.15 billion consensus.  Dupont reaffirmed 2009 EPS of $1.70 to $2.10 vs. $1.71 consensus estimates, and its target for free cash flow outlook remains $2.5 billion for all of 2009.  No price direction has been seen in trading so far.

Merck & Co. (NYSE: MRK) posted earnings of $0.83 EPS vs. $0.77 estimates, and revenues were down almost 3% to $5.9 billion vs. $5.84 billion estimates.  It reaffirmed FY09 EPS of $3.15 to $3.30 vs. $3.20 consensus and sees fiscal revenues at $23.2 to $23.7 billion vs. $23.34 billion consensus.  Merck’s merger with Schering-Plough (SGP) is anticipated to close in the fourth quarter. Shares are indicated up 2% in early indications.

United Technologies (NYSE: UTX) posted earnings at $1.05 vs. $1.04 estimates, but be advised that this has taken charges and benefits into consideration.  Revenues were soft and earnings and revenue projections for the full year are being brought down.  Full year is now $4.00 to $4.20 vs. $4.07 estimates but under their prior target; revenue was put at $53 billion, about $2 billion under prior targets and under the $54.1 billion estimate.  No price direction has been seen in trading so far.

Coca-Cola (NYSE: KO) and Caterpillar (NYSE: CAT) are still on deck.

JON C. OGG
JULY 21, 2009