Investing

8 Top Earnings to Look for Next Week

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24/7 Wall St. has put together a preview of some of the major companies reporting their quarterly results this week. We are just entering into earnings season in which most major companies will report and set a direction for the market. We have included the consensus earnings estimates from Thomson Reuters and the stock price and trading history, as well as added some additional color on each.

Be advised that the earnings and revenue estimates may change ahead of the formal reports, and some companies may change reporting dates as well.

For more previews of the big earnings in the week ahead, see 7 Key Dow Earnings for the Week Ahead.

Bank of America

Bank of America Corp. (NYSE: BAC) will share its most recent quarterly results on Tuesday. The consensus estimates call for earnings per share (EPS) of $0.26 and $19.86 billion in revenue. This company has continued a methodical march back to financial health and is a true big money center bank. It is the fifth largest bank in the world by market capitalization and is a ubiquitous presence in the United States, providing various banking and financial products and services for individual consumers, small and middle market businesses, institutional investors, corporations and governments in the United States and internationally.

Shares traded at $14.46 on the close on Friday, in a 52-week trading range of $14.13 to $18.48. The stock has a consensus analyst price target of $18.88.


Delta Air Lines

Delta Air Lines Inc. (NYSE: DAL) is scheduled to reveal its fourth-quarter results on Tuesday. The consensus estimates call for $1.19 in EPS, as well as $9.61 billion in revenue. This airline had a great year, making four times more money in the past two quarters than it did in all of 2014. It is underperforming competing airlines that have not done nearly as well and practically hasn’t moved at all in the past 52 weeks. There is little fundamental reason for the underperformance here.

Shares of Delta were trading at $44.50 on Friday’s close. The consensus price target is $66.62. The stock has a 52-week trading range of $34.61 to $52.77.

Morgan Stanley

Morgan Stanley (NYSE: MS) is set to report its fourth-quarter results on Tuesday. The consensus estimates call for EPS of $0.33 and $7.59 billion in revenue. The volatility in global markets has led to a difficult environment, impacting in particular this bank’s fixed income business and its Asia Merchant Banking business. Morgan Stanley has benefited from the stability of the wealth management business in past quarters, and its ongoing leadership in equities and the continued strength of its investment banking franchise.

Shares were changing hands at $25.97 on Friday’s close. The consensus price target is $36.96, and the stock has a 52-week trading range of $25.51 to $41.04.

Netflix

Netflix Inc. (NASDAQ: NFLX) is scheduled to report its fourth-quarter results on Tuesday. The consensus analyst estimates call for $0.02 in EPS and revenue of $1.83 billion. Netflix absolutely dominated 2015. This stock is up over 144% in 2015. This company has had a meteoric rise over the course of the year, making its way into many households. Netflix has plans to expand across Europe and even break into the Chinese market. Just recently the company announced that it has moved into practically every country on the planet, with the exception of China.

Shares of Netflix ended last week at $104.04. The consensus price target is $123.78. The 52-week trading range is $46.38 to $133.27.

Schlumberger

Schlumberger Ltd. (NYSE: SLB) is expected to share its latest quarterly earnings on Thursday. The consensus estimates call for $0.63 in EPS and $7.80 billion in revenue. This is the king of oilfield services. Despite a transformation that already is underway, more layoffs are headed to Schlumberger’s workforce. This of course also comes with implications in the pending acquisition of Cameron International and the layoffs that will come with it. We can look forward to an update in this earnings report.

Shares traded at $63.01 on Friday’s close, in a 52-week trading range of $61.71 to $95.13. The stock has a consensus price target of $86.73.

Southwest Airlines

Southwest Airlines Co. (NYSE: LUV) is set to report its fourth-quarter results on Thursday. The consensus estimates call for EPS of $0.90 and $5.00 billion in revenue. This company continues to expand routes and remains a low-cost leader. It is also the top pick across Wall Street. Southwest continues to increase the footprint and brand awareness all over the country. With the domestic market showing reasonably good strength, and the pricing environment looking very solid through next year, revenues should stay strong and continue to grow. Jet fuel prices, which still remain much lower than in past years, is almost 30% of Southwest’s total costs and have been a key for improving revenues and earnings. With almost no international business at this time, currency headwinds are not an issue for Southwest.

Shares of Southwest were changing hands at $39.77 as last week came to a close. The consensus price target is $54.23, and the stock has a 52-week trading range of $31.36 to $51.34.

Starbucks

Look for Starbucks Corp. (NASDAQ: SBUX) to share its latest quarterly earnings on Thursday. The consensus estimates call for $0.45 in EPS on $5.39 billion in revenue. This company has taken over the civilized world’s coffee market and wants to do the same with tea (and maybe even in wine). Goldman Sachs likes the wide moat that Starbucks has built up. It sees huge overseas expansion possibilities still awaiting in key growth markets.

Shares were at $58.00 0n Friday’s close, in a 52-week trading range of $39.50 to $64.00. The consensus price target is $68.26.


Synchrony Financial

Synchrony Financial (NYSE: SYF) is scheduled to reveal its fourth-quarter results on Friday. The consensus estimates call for $0.63 in EPS, as well as $3.21 billion in revenue. Hit hard since late July, this stock may be the perfect value financial for a value portfolio. Synchrony is one of the nation’s premier consumer financial services companies. It is the self-described largest provider of private label credit cards in the United States, based on purchase volume and receivables. It provides a range of credit products through programs established with a diverse group of national and regional retailers, local merchants, manufacturers, buying groups, industry associations and health care service providers to help generate growth for the company’s partners and offer financial flexibility.

Shares were trading at $27.64 as Friday’s trading came to a close. The consensus price target is $38.26. The stock has a 52-week trading range of $26.28 to $36.40.

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