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.