Investing

7 DJIA Earnings Previews for This Week: Apple, Merck, Pfizer, Exxon, Visa, Chevron

Corporate earnings season now in full throttle, and 24/7 Wall St. has put together a preview of some of the Dow Jones Industrial Average components reporting their financial results in the week ahead. We have already given a separate set of previews for key technology earnings previews in the week ahead. Consensus earnings estimates have been taken from Thomson Reuters, and recent trading history, price targets and news around each company has been added for color.

Apple

Apple Inc. (NASDAQ: AAPL) is scheduled to report its fiscal second-quarter earnings on Monday. The consensus estimates call for earnings per share (EPS) of $2.15 and $55.91 billion in revenue. Apple remains the world’s biggest and boldest technology company, and it has stayed in the limelight with the release of the new Apple Watch. While not generating the kind of in-store mania the iPhone 6 release did, reports indicate over a million orders for the new wearable device were taken by the company.

Apple shares closed trading Friday at $130.28. The consensus price target is $141.57, and the stock has a 52-week trading range of $80.57 to $133.60.

ALSO READ: Why Apple’s Dividend Hike and Buybacks Will Outshine Earnings

Merck

Merck & Co. Inc. (NYSE: MRK) is set to report its first-quarter results on Tuesday. The consensus estimates call for $0.74 in EPS and $8.99 billion in revenue. This stock has been hit hard since printing a high in late January, and it may be offering new investors a very good entry point. It also remains a leading health care company that is on the focus lists of many of the top firms we cover. The company’s numerous prescription medicines, vaccines, biologic therapies and consumer care and animal health products are provided to customers in more than 140 countries.

Merck shares were trading at $57.60 as Friday’s session came to a close. The consensus price target is $63.85, and the stock has a 52-week trading range of $52.49 to $63.62.

Pfizer

Pfizer Inc. (NYSE: PFE) will release its most recent quarterly results on Tuesday. The consensus estimates are $0.49 in EPS on $10.73 billion in revenue. The pharmaceutical giant is the fifth largest Dow gainer so far this year at 14.5%, while rival Merck is up not even 3%. Many investors are operating under the premise that Pfizer is on the path to break up into two, or maybe even into three, companies. Its 3.2% yield also remains a draw. Still, patent cliffs are a constant challenge, and they are forcing Pfizer and other drug giants to look for opportunities in emerging pharma, biotech and internationally.

Pfizer shares ended the week at $35.27. The consensus price target is $36.55. The 52-week trading range is $27.51 to $35.53.

ALSO READ: The 20 Largest Private Companies in America

Exxon Mobil

On Thursday, Exxon Mobil Corp. (NYSE: XOM) is scheduled to post its first-quarter results. Consensus estimates call for EPS of $0.82 on revenue of $51.22 billion. Some investors are thinking that oil has bottomed out and that there will be a changing landscape in the oil patch as a result. Oppenheimer suggests that there will be an increased wave of mergers and acquisitions, among other things. Exxon would be one of the companies looking to benefit the most from this.

Exxon shares ended Friday at $86.97. The consensus price target is $93.44, and the stock has a 52-week trading range of $82.68 to $104.76.

Visa

Visa Inc. (NYSE: V) is scheduled to report its fiscal second-quarter results on Thursday. The consensus estimates call for $0.62 in EPS and $3.34 billion in revenue. Bill Carcache, Nomura equity analyst, has been touting Visa and MasterCard Inc. (NYSE: MA) as top picks in his coverage universe. The big question is what kind of multiple they deserve. According to his report, “We’ve historically viewed 25x as appropriate for the payment networks, but we now believe we’ve entered a period where that’s too low.” As a result Nomura initiated a street-high price target of $80.75.

Visa shares were changing hands at $67.48 on Friday’s close. The consensus price target is $73.17, and the stock has a 52-week trading range of $48.80 to $69.98.

ALSO READ: Has AT&T’s Stock Finally Bottomed?

Chevron

Chevron Corp. (NYSE: CVX) will release its most recent quarterly results Friday. The consensus estimates have EPS at $0.79 on $28.41 billion in revenue. At its analysts’ day presentation in mid-March, Chevron said the company plans to grow net production by 20% by 2017. On the basis of 2.6 million barrels of oil equivalent per day, that works out to a total of 3.1 million barrels a day. Where that growth is expected to come from is interesting, as is the company’s answer to why grow at all in a time of declining demand.

Chevron shares closed trading at $109.87 late on Friday, in a 52-week trading range of $98.88 to $135.10. The consensus price target is $114.07.

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