Earnings Expectations for First Quarter are Modest (AA, GOOG, JPM, WFC)

Investing

Published: April 10, 2012 12:45 pm

Last Updated: April 14, 2020 3:55 pm

Alcoa Inc. (NYSE: AA) kicks off the new earnings season after the markets close today, and according to S&P Capital IQ consensus estimates, it looks like earnings are going to be off to a wobbly start. Capital IQ expects an EPS loss of -$0.03/share compared with EPS of $0.28 in the first quarter of 2011.

Other major reports due this week include Google Inc. (NASDAQ: GOOG), JPMorgan Chase & Co. (NYSE: JPM), and Wells Fargo and Co. (NYSE: WFC). Earnings estimates from Capital IQ estimate EPS of $9.62 from Google, compared with $8.08 a year ago (up 19%); EPS of $1.16 for JPMorgan, down from $1.28 a year ago (down 9.1%); and EPS of $0.73 from Wells Fargo, up from $0.67 a year ago (up 9.3%).

So far this year, 81% of 27 S&P 500 companies that have reported first quarter earnings have beaten expectations. The surprise has been 11.3% to the upside so far, but overall the calendar quarter growth rate projected by Capital IQ is just 1.02%. That’s a far cry from the 11.2% earnings growth posted in the fourth quarter by the S&P 500.

We noted the tempered expectations for first quarter earnings in more detail yesterday. The S&P Capital IQ numbers reiterate the modest outlook for the new earnings season.

Paul Ausick

Credit Card Companies Are Doing Something Nuts

Credit card companies are at war. The biggest issuers are handing out free rewards and benefits to win the best customers.

It’s possible to find cards paying unlimited 1.5%, 2%, and even more today. That’s free money for qualified borrowers, and the type of thing that would be crazy to pass up. Those rewards can add up to thousands of dollars every year in free money, and include other benefits as well.

We’ve assembled some of the best credit cards for users today. Don’t miss these offers because they won’t be this good forever.

Flywheel Publishing has partnered with CardRatings for our coverage of credit card products. Flywheel Publishing and CardRatings may receive a commission from card issuers.