Earnings season is now in full swing and we have many major market-movers that are on deck Thursday afternoon and Friday morning with key earnings reports. Many are DJIA components. We have compiled previews for Amazon.com Inc. (NASDAQ: AMZN), American Express Company (NYSE: AXP), Microsoft Corporation (NASDAQ: MSFT), Mosaic Company (NYSE: MOS), SanDisk Corp. (NASDAQ: SNDK), Ford Motor Co. (NYSE: F), McDonald’s Corp. (NYSE: MCD), and Verizon Communications Inc. (NYSE: VZ). We have given official estimates from Thomson Reuters, but we have also provided chart and moving average analysis as well as options trading expectations and other color for traders and investors.
Amazon.com Inc. (NASDAQ: AMZN) is after the closing bell on Thursday and Thomson Reuters has estimates of $0.54 EPS (vs. $0.32 a year ago) and $6.54 billion in revenue (both down marginally from last week). Next quarter estimates are $0.61 EPS and $7.15 billion in revenues. Shares are at $118.75 and the 52-week range is $77.51 to $151.09. Amazon has been in the midst of a technical no man’s land, and options traders seem to be braced for a move of about $4.50 to $5.00 in either direction. While Kindle sales have been hot after the recent price cut, everyone wants to know how the company is going to fend off Apple’s iTunes in the future for e-book sales, movies, and more. Apple already owns music download sales. The chart is very important here with key resistance at implied moving averages: 50-day moving average is $121.51 and the 200-day moving average is $125.61.
Thursday after the close will be earnings from credit card giant and DJIA component American Express Company (NYSE: AXP). Thomson Reuters has estimates of $0.77 EPS (vs. only $0.09 a year ago) and $6.84 billion in revenues; next quarter estimates are $0.75 EPS and $6.83 billion in revenues. Shares are currently around $41.60 and the 52-week trading range is $26.66 to $49.19. Amex’s chart may offer some key support under current levels of $42.75 as the 50-day moving average is $40.76 and the 200-day moving average is $40.11.
Thursday after the close will be software and tech giant Microsoft Corporation (NASDAQ: MSFT). Thomson Reuters has estimates of $0.46 EPS (vs. $0.36 a year ago) and $15.22 billion in revenues; next quarter estimates are $0.54 EPS and $15.65 billion in revenues. Shares are now around $25.70 and the 52-week trading range is $22.73 to $31.58. What is most important today is how the stock acts around the chart. The 50-day moving average is right here now at $25.72 and today’s challenge on that is the first day the 50-day moving average will have been challenged since May when shares were up at $29.00. While not much new has been out, this is one of our safest dividend stocks in technology. After Intel’s strong quarter, Microsoft won’t be able to just meet estimates and the street will be focusing on how strong the Windows 7 sales really came in as reports were out in June that sales were above many expectations. This is still the safest dividend in technology.
The Mosaic Company (NYSE: MOS) is due after the closing bell Thursday. Thomson Reuters has estimates of $0.87 EPS (vs. $0.33 a year ago) and revenues of $2.14 billion. Next quarter estimates are $0.73 EPS and $1.96 billion in revenues. The shares are currently at $45.00 and the 52-week range is $37.68 to $68.28. Shares are currently between its longer-term chart moving averages as the 50-day is $44.13 and the 200-day is $53.02. Trying to peg fertilizer and potash shares ahead of time is no simple task, but a recent environmental suit is something to watch for news on today because investors are not sure if this is isolated or if it is a broader issue with more suits to follow.
SanDisk Corp. (NASDAQ: SNDK) is due on Thursday after the close. Thomson Reuters has estimates of $0.90 EPS (vs. $0.36 a year ago) and $1.16 billion in revenue. Next quarter estimates are $0.95 EPS and $1,25 billion in revenues. Shares are at $42.50 and the 52-week range is $16.21 to $50.55. SanDisk has a built-in expectation for a “guide-higher” again as flash memory is where all the action is. Shares are up over 100% in the last year and this is up over 300% from.the absolute lows in 2009. Options traders are braced for a move of anything up to $3.00 or even a tad more in either direction. That 50-day moving average needs to be watched at $44.27 because it has acted as a pivot point. To show how much this is up, the 200-day moving average is all the way down at $32.74.
Ford Motor Co. (NYSE: F) is due out with earnings Friday morning, and another positive earnings report is expected. The only non-government bailout auto-maker in the US has Thomson Reuters estimates of $0.40 EPS (vs. -$0.21 EPS loss a year ago) on revenue of $29.79 billion. Next quarter estimates are $0.25 EPS and $29.37 billion in revenue. Ford has continued to shrink its balance sheet, and despite a recent unit bond sale hiccup the Treasurer gave us very positive outlook comments on continuing to shrink down its debt. At $11.90, the 52-week range is $6.13 to $14.57. Ford is also above the 50-day moving average of $11.31 and the 200-day average of $10.91. Options are harder to use for indications on lower-priced shares, but these are often used by speculators and the options are generally very active.
Friday morning brings earnings from fast food king McDonald’s Corp. (NYSE: MCD). Thomson Reuters has estimates of $1.12 EPS (vs. $0.97 year ago) and $5.91 billion in revenues; next quarter estimates are $1.22 EPS and $6.07 billion in revenues. Shares are currently around $71.24 and the 52-week trading range is $53.88 to $71.84, so any positive move would put this at effectively new 52-week highs. The market is expecting a better report than what Yum! showed. Options traders are apparently only braced for a move of up to about $1.25 in either direction.
Verizon Communications Inc. (NYSE: VZ) is also on Friday morning and Thomson Reuters has estimates of $0.56 EPS (down from $0.63 a year ago) and $27.10 billion in revenues; next quarter estimates are $0.53 EPS and $26.43 billion in revenues. After the strong AT&T report, the bar for expectations was just unofficially raised. This is still the safest dividend in telecom. Shares are currently around $27.04 and the 52-week trading range is $25.99 to $34.13. Its dividend is now 7.20%. That recent Frontier restructuring was made, and this was one of our safest dividend votes of late. Again, look for any hint of when that iPhone will finally make it over to Verizon.
JON C. OGG
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