Top DJIA Earnings Previews For The Coming Week, and Future-DJIA Components (IBM, BAC, KO, JNJ, AXP, INTC, UTX, T, MSFT, TRV, GE, MCD, VZ, AAPL, WFC, MO, HON)

Next week will mark the true ‘opening the floodgates’ for earnings season.  We have given some brief earnings previews and added in color for the DJIA components set to report earnings in the coming week.  Those will be in shares of International Business Machines Corporation (NYSE: IBM), Bank of America Corporation (NYSE: BAC), Coca-Cola Company (NYSE: KO), Johnson & Johnson (NYSE: JNJ), American Express Co. (NYSE: AXP), Intel Corporation (NYSE: INTC), United Technologies Corporation (NYSE: UTX), AT&T Inc. (NYSE: T), Microsoft Corporation (NASDAQ: MSFT), Travelers Companies Inc. (NYSE: TRV), General Electric Company (NYSE: GE), McDonald’s Corporation (NYSE: MCD), and Verizon Communications Inc. (NYSE: VZ).  We have also highlighted four more non-DJIA stocks because of their importance: Apple Inc. (NASDAQ: AAPL), Wells Fargo & Co. (NYSE: WFC), Altria Group Inc. (NYSE: MO), and Honeywell International Inc. (NYSE: HON).

Estimates have been provided using Thomson Reuters Consensus data for the quarterly report due and also for one quarter out (the current quarter underway) in case these offer guidance.  We have also added in color on each report with other expectations or developments and we have even added in analyst target price data from Thomson Reuters on the key reports.

MONDAY, JULY 18

International Business Machines Corporation (NYSE: IBM) has estimates of $3.03 EPS and $25.35 billion in revenues; next quarter estimates are $3.18 EPS and $25.65 billion in revenues.  Shares are trading around $174.96 and the 52-week trading range is $122.28 to $177.77.  Analysts have a consensus price target just above $180.00.  IBM is the one DJIA component that has crept higher and higher each quarter.  It is also the top DJIA component because of the price-weighting issue on the index.  We show this as being about 10.6% of the entire DJIA, so its report can single-handedly move the index more than any even if the rest of the components are mostly unchanged.

TUESDAY, JULY 19

Bank of America Corporation (NYSE: BAC) has estimates of a loss of $0.90 EPS and $12.34 billion in revenues; next quarter estimates are $0.27 EPS and $25.73 billion in revenues.  Shares are trading around $10.06 and the 52-week trading range is $10.02 to $17.84.  With shares having hit 52-week lows all over again this week, that $15.00+ price target from analysts seems almost like a farce now.  BofA has the bar set higher.  The investment community also needs to be braced for the headlines from media that “Bank of America Lost Billions In Latest Quarter” because it is recording that huge multi-billion charge for mortgages.  Citi and J.P,. Morgan have already posted good reports and trade at discounts to book value of roughly 10% for J.P.Morgan and 20% for Citi.

The Coca-Cola Company (NYSE: KO) has estimates of $1.16 EPS and $12.39 billion in revenues; next quarter estimates are $1.04 EPS and $12.09 billion in revenues.  Shares are trading around $67.32 and the 52-week trading range is $51.92 to $68.89.  Analysts have a price target nearing $75.50.  Coca-Cola has been flirting with year highs but is still well below its historic highs.  Pepsi seems more diversified now, so the correlation between the two companies so far are not looking as much in-line for long-term.

Johnson & Johnson (NYSE: JNJ) has estimates of $1.23 EPS and $16.22 billion in revenues; next quarter estimates are $1.22 EPS and $16.00 billion in revenues.  Shares are trading around $67.22 and the 52-week trading range is $56.86 to $68.05.  Analysts have a price target $71.82 as of now.  J&J has been one major surprise.  Despite exiting the drug-coated stents, despite portfolio changes happening through time, and despite the major recalls of 2010 and earlier this year, the company is still within striking distance of its all-time highs.

WEDNESDAY, JULY 20

American Express Co. (NYSE: AXP) has estimates of $0.98 EPS and $7.35 billion in revenues; next quarter estimates are $0.94 EPS and $7.42 billion in revenues.  Shares are trading around $51.55 and the 52-week trading range is $37.33 to $53.80. Analysts have a price target of $51.43 as of now. American Express is to credit cards what J.P. Morgan is to banks: the best credit quality in the class.  Shares recently hit new one-year highs and we will look to see what its comments are regarding the interchange fee fight that has impacted its competitors.  Other than that, it is going to be demanded that credit delinquencies and charge-offs are still improving.

Intel Corporation (NYSE: INTC) has estimates of $0.51 EPS and $12.82 billion in revenues; next quarter estimates are $0.58 EPS and $13.48 billion in revenues.  Shares are trading around $22.48 and the 52-week trading range is $17.60 to $23.96 and the consensus analyst target is just about $25.50.  Intel finds itself in a catch-22 going into earnings.  It just screened out as value in chip stocks, but the weakening comments from chip companies and on PC sales in June shipments from industry watch groups have to have arisen since it made its surprisingly positive guidance reaffirmation during the quarter.  Shares are down about 6% from the 52-week high, which is well above-average for many of the other value stocks we featured in recent days.

United Technologies Corporation (NYSE: UTX) has estimates of $1.41 EPS and $14.69 billion in revenues; next quarter estimates are $1.44 EPS and $14.46 billion in revenues.  Shares are trading around $88.09 and the 52-week trading range is $64.57 to $91.83.  The consensus price target is nearly $98.00.  United Tech is in a different boat than many companies because its 52-week high is also its all-time high.  It is only down about 5% from those highs as well.  That being said, it also trades at more than 14-times 2012 projected earnings.  Our take is that United Tech is going to have to keep beating its earnings estimates (as it has been doing) for that valuation to creep up as well.

THURSDAY, JULY 21

AT&T Inc. (NYSE: T) has estimates of $0.60 EPS and $31.33 billion in revenues; next quarter estimates are $0.60 EPS and $31.58 billion in revenues.  Shares are trading around $30.29 and the 52-week trading range is $24.50 to $31.94.  The consensus target is $32.62.  AT&T managed to hold up rather well after losing the iPhone exclusivity but its peak in April has acted as a barrier during its last rally attempt.  The fear is that giant T-Mobile acquisition and the giant break-up fee.  How this pans out is still in the air.

Microsoft Corporation (NASDAQ: MSFT) has estimates of $0.58 EPS and $17.23 billion in revenues; next quarter estimates are $0.67 EPS and $17.40 billion in revenues.  Shares are trading around $26.64 and the 52-week trading range is $23.32 to $29.46.  Analysts currently have a price target of about $32.24, a price which has hardly been witnessed in the last five years.  Microsoft held up better than we expected in the latest chip woes as we expected many of the PC-peripheral players to suffer too.  Now that Skype has the Facebook deal, Microsoft’s expensive buyout is facing less criticism.  We are still of the mind that Microsoft needs to adopt a much more aggressive dividend policy to reward its shareholders.

Travelers Companies Inc. (NYSE: TRV) has estimates of a loss of $0.63 EPS and $5.81 billion in revenues; next quarter estimates are $1.37 EPS and $5.61 billion in revenues.  Shares are trading around $57.98, the 52-week trading range is $48.46 to $64.17, and the price target is $65.00.  Travelers is the DJIA component that everyone seems to forget is a DJIA component, including yours truly.  Even for a financial company, valuations are not lofty here.  That being said, a rapid rise in long-term rates hurts insurers and some of the low valuation may be because of concern that a quick rise in rates would hurt its balance sheet.

FRIDAY, JULY 22

General Electric Company (NYSE: GE) has estimates of $0.32 EPS and $34.80 billion in revenues; next quarter estimates are $0.32 EPS and $34.13 billion in revenues.  Shares are trading around $18.36 and the 52-week trading range is $14.25 to $21.65.  The consensus price target here is now almost $24.00.  GE was recently just voted as the 24/7 Wall St. Top Conglomerate Value Pick.  The valuations are fair, it has hiked its dividend and it is now buying back stock.  The company’s NBC transition has been ongoing and the company still seems to be seeing better credit metrics in its financial exposure.

McDonald’s Corporation (NYSE: MCD) has estimates of $1.28 EPS and $6.63 billion in revenues; next quarter estimates are $1.42 EPS and $6.92 billion in revenues.  Shares are trading around $85.22, the 52-week trading range is $68.59 to $86.46, and the consensus price target is now very close at $86.75.  McDonald’s has just grown and grown and we will be looking to see if there is any further sign of concern over its move to more healthy items and/or whether it can keep growing its same-store sales figures month in and month out.  Shares are now only about 2% lower than the all-time highs.

Verizon Communications Inc. (NYSE: VZ) has estimates of $0.55 EPS and $27.42 billion in revenues; next quarter estimates are $0.58 EPS and $27.90 billion in revenues.  Shares are trading around $36.85 and the 52-week trading range is $26.41 to $38.95.  Analysts have a consensus price target of $38.35.  Verizon has had the iPhone for a while now and its shares peaked earlier this year.  Shares have been a bit stuck and there is some stock chart resistance above, perhaps even more so than seen in AT&T.

NON-DJIA REPORTS THIS COMING WEEK

Apple Inc. (NASDAQ: AAPL) is the one that everyone loves to ponder about whether it should or should not be a DJIA component ahead.  The greatest growth story of the last decade has estimates of $5.73 EPS and $24.75  billion in revenues; next quarter estimates are $6.37 EPS and $27.64 billion in revenues.  Shares are trading around $360.36 and the 52-week trading range is $199.25 to $364.90.  Analysts have a consensus price target of nearly $450.00.  Apple is one that is now again with striking distance of the all-time highs even if we did see some estimates trimmed.  The old chart concerns have rapidly gone into the rearview mirror.  Our concern is too rapid product replacement cycles as key products are given updates too close on the calendar.  The other concern is that the company might not be able to grow a $333 billion market cap as fast as it has grown historically.  That being said, how much has it worked in the past being cautious on Apple?  Not too well.

Wells Fargo & Co. (NYSE: WFC) has estimates of $0.69 EPS and $20.40 billion in revenues; next quarter estimates are $0.70 EPS and $20.26 billion in revenues.  Shares are trading around $27.33 and the 52-week trading range is $23.02 to $34.25.  Analysts have a consensus price target of $36.17, but it is worth noting that this price has not been seen since before the malaise of the recession.  Wells Fargo is one of the other too big to fail banks and we will be watching Warren Buffett’s favorite bank very closely here.

Altria Group Inc. (NYSE: MO) is a former DJIA component and has estimates of $0.53 EPS and $4.45 billion in revenues; next quarter estimates are $0.57 EPS and $4.53 billion in revenues.  Shares are trading around $26.71 and the 52-week trading range is $19.20 to $27.15. The consensus price target is only $27.67.  Altria is a former DJIA component before it broke itself up.  Shares peaked in May and it does seem that these new death and ugly real photos that will have to go on the labels is casting a dark cloud over the sector of cigarettes.

Honeywell International Inc. (NYSE: HON) is often considered a DJIA component because of its past and it has estimates of $0.98 EPS and $9.26 billion in revenues; next quarter estimates are $1.02 EPS and $9.15 billion in revenues.  Shares are trading around $57.06 and the 52-week trading range is $38.08 to $62.28.  The consensus price target is $68.52 for Honeywell.

You are invited to join our free daily email distribution list to hear more about analyst upgrades and downgrades, top day trader and active trader alerts, dividend trends, news on Buffett and other investment gurus, IPOs, secondary offerings, private equity, and more.

JON C. OGG