This coming week will be the launch of earnings season. After the week is up, there will have been five of the thirty DJIA stocks reporting earnings. The big earnings on deck are Alcoa Inc. (NYSE: AA), CSX Corp. (NYSE: CSX), Intel Corp. (NASDAQ: INTC), YUM! Brands Inc. (NYSE: YUM), JPMorgan Chase & Co. (NYSE: JPM), Google Inc. (NASDAQ: GOOG), Advanced Micro Devices Inc. (NYSE: AMD), Bank of America Corp. (NYSE: BAC), Citigroup Inc. (NYSE: C), and General Electric Co. (NYSE: GE). We have compiled data using Thomson Reuters consensus data and we have also looked at relative share price performance over the rally of the last week and against the slide seen on each since late-April or early May. Also included is some basic trading color on trends and relative data where applicable.
Alcoa Inc. (NYSE: AA) is due after the close on Monday and will mark the first of the DJIA 30 components reporting earnings. Many try to tie its direction as a bias for earnings season with mixed real comparable results. Thomson Reuters has estimates of $0.12 EPS and $5.05 billion in revenues. For the next quarter, estimates are $0.17 EPS and $5.14 billion in revenues; for the fiscal year its estimates are $0.56 EPS and $20.33 billion in revenues. Shares are trading at $10.94 versus $14.00+ in the end of April before the market slide came but is up from $10.00 just one-week ago.
CSX Corp. (NYSE: CSX) is also due for earnings Monday and will be the first of the big rail transport stocks reporting. Some may even try to use this as a tool to grade Warren Buffett and Berkshire Hathaway Inc. (NYSE: BRK-A) now that the conglomerate is the proud owner of BNSF. Thomson Reuters has estimates of $0.97 EPS and $2.62 billion in revenues. For the next quarter, estimates are $0.95 EPS and $2.63 billion in revenues; for the fiscal year its estimates are $3.64 EPS and $10.36 billion in revenues. Shares are trading at $51.75 versus $57.00 in the last week of April before the market slide came but the stock is up from $47.70 just one-week ago.
On Tuesday after the close will be processor and chip giant Intel Corp. (NASDAQ: INTC) as the second of the DJIA 30 components to report. It will be pretty hard for the bias of Intel to not set the direction for technology stocks tied anything at all to PCs during this coming earnings season. Thomson Reuters has estimates of $0.43 EPS and $10.25 billion in revenues. For the next quarter, estimates are $0.48 EPS and $10.92 billion in revenues; for the fiscal year its estimates are $1.87 EPS and $43.03 billion in revenues. Shares are trading at $20.24 versus $24.00 in late April before the market slide came but are up from $19.20 just one-week ago.
YUM! Brands Inc. (NYSE: YUM) is also due out with earnings this coming week on Tuesday. The fast food chain, actually the one in the sector we think that has the safest dividend of its peers, as always will have a keen look on the food spending in China and in the U.S. Thomson Reuters has estimates of $0.54 EPS and $2.54 billion in revenues. For the next quarter, estimates are $0.73 EPS and $2.85 billion in revenues; for the fiscal year its estimates are $2.48 EPS and $11.2 billion in revenues. Shares are trading at $40.27 versus $44.00 in late-April before the market slide came but is up from $38.53 just one-week ago.
JPMorgan Chase & Co. (NYSE: JPM) is due out with earnings on Thursday morning, making it the third of the DJIA components reporting this coming week. The safest bank in the United States will be the trend setter for the financial stocks as far as a yardstick measuring is concerned. Thomson Reuters has estimates of $0.72 EPS and $25.96 billion in revenues. For the next quarter, estimates are $0.81 EPS and $25.89 billion in revenues; for the fiscal year its estimates are $3.12 EPS and about $105.8 billion in revenues. Shares are trading at $38.85 versus $44.00 in late-April before the market slide came but is up from $35.83 just one-week ago.
Google Inc. (NASDAQ: GOOG) is due out with earnings on Thursday after the closing bell. Interestingly, the market is not really using Google as the go-to comparison stock any longer. Maybe Google has just too many initiatives to be effective now. Maybe its move into the smartphone market has skewed things. Maybe the drop-off of CPM rates in this last week was a tell, but that was after the quarter-end and Google never gives any guidance. Thomson Reuters has estimates of $6.54 EPS and $4.99 billion in revenues. For the next quarter, estimates are $6.85 EPS and $5.21 billion in revenues; for the fiscal year its estimates are $27.63 EPS and $21.04 billion in revenues. Shares are trading at $467.49 versus over $560.00 in mid to late-April before the market slide came but the stock is up from $436.00+ just one-week ago.
Advanced Micro Devices Inc. (NYSE: AMD) is due after the closing bell on Thursday. With Intel having already reported by the time AMD gets earnings out, about all that really matters is if AMD was able to get any market share and if its profitability quest can stay in focus. Thomson Reuters has estimates of $0.07 EPS and $1.55 billion in revenues. For the next quarter, estimates are $0.13 EPS and $1.66 billion in revenues; for the fiscal year its estimates are $0.47 EPS and $6.54 billion in revenues. Shares are trading at $7.34 versus $10.00 at the end of April before the market slide came but the turnaround processor and graphics stock is up from $7.04 earlier in the week.
Bank of America Corp. (NYSE: BAC) is due out with earnings Friday morning. JPMorgan might have already set thee trend for the bank sector, but all eyes are on this one as it is the other bank in the DJIA 30 stocks. Thomson Reuters has estimates of $0.20 EPS and $29.69 billion in revenues. For the next quarter, estimates are $0.23 EPS and $29.09 billion in revenues; for the fiscal year its estimates are $0.97 EPS and $120.16 billion in revenues. Shares are trading at $15.11 versus over $19.00 in mid-April before the market slide came but the stock is up from $13.84 just one-week ago.
Citigroup Inc. (NYSE: C) is no longer a DJIA component but its low share price and its massive trading volume make this a key bank report to watch. The government managing to improperly confuse the share sale process is only adding an overhang for now until more clarity comes. By all counts, there is still room for this stock to double in the next 12 to 24 months as it sheds assets and gets down to “The Core Citi” in operations. Thomson Reuters has estimates of $0.05 EPS and $22.35 billion in revenues. For the next quarter, estimates are $0.06 EPS and $22.08 billion in revenues; for the fiscal year its estimates are $0.34 EPS and $91.39 billion in revenues. Shares are trading at $4.04 versus just over $5.00 in late April before the market slide came but the stock is up from $3.79 just one-week ago.
General Electric Co. (NYSE: GE) will make five of the 30 DJIA stocks reporting this week after its results are out on Friday morning. The conglomerate is still viewed by many as troubled and in a state of change, and perhaps the big focus will be on whether GE’s financial operations were able to run at a profit. Jeff Immelt “may” shed a bit more light on the return to a more normal dividend, but per his interview he gave me on an exclusive basis it still may be later in the year. Thomson Reuters has estimates of $0.27 EPS and $38.7 billion in revenues. For the next quarter, estimates are $0.27 EPS and $38.7 billion in revenues; for the fiscal year its estimates are $1.09 EPS and $155.47 billion in revenues. Shares are trading at $14.95 versus $19.70 at the end of April before the market slide came but the stock is up from $13.88 just one-week ago.
As a reminder, options expiration date is this coming Friday, July 16, 2010. That will make these stocks have that many more ways to watch the stock. Despite the weak Euro before June’s stabilization and despite the weakness in Europe, very few companies preannounced their results ahead of time.
JON C. OGG
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