Last week may have been the official start of earnings season, but this week is when the real floodgates for earnings reports will open wide. Citigroup Inc. (NYSE: C) has already reported earnings and we have already given previews for the Dow Jones Industrial Average components with twelve or thirteen components reporting earnings this week alone.
The top ten earnings reports we are focusing on for the rest of this week are as follows: Intel Corporation (NASDAQ: INTC); International Business Machines Corporation (NYSE: IBM); Johnson & Johnson (NYSE: JNJ); The Coca-Cola Company (NYSE: KO); Bank of America Corporation (NYSE: BAC); Microsoft Corporation (NASDAQ: MSFT); Verizon Communications, Inc. (NYSE: VZ); American Electric Power Co. Inc. (NYSE: AEP); General Electric Co. (NYSE: GE); and McDonald’s Corporation (NYSE: MCD).
24/7 Wall St. has also highlighted four hot IPOs to watch late this week and we also highlighted the strongest stock charts in the S&P 500 Index. We have also given a scoring card for how earnings season is looking so far.
Tuesday, April 17
Intel Corporation (NASDAQ: INTC) reports on Tuesday after the close. The processor and chip giant just put in yet another multi-year high on Monday at $28.55 and it should be worth noting that Thomson Reuters has a consensus price target of only $28.38 currently. The company will likely have to do better than just meeting earnings estimates and guiding within the range of estimates. Thomson Reuters has estimates of $0.50 EPS and $12.84 billion in revenue.
International Business Machines Corporation (NYSE: IBM) is around $204.00 and is under a new CEO. We always watch the billions of backlog and its longer-term guidance. The current consensus is $208.10 and that pales in comparison to the recent $230 price target from one analyst. Thomson Reuters has estimates of $2.65 EPS and $24.77 billion in revenue.
Johnson & Johnson (NYSE: JNJ) remains with a fairly negative bias based upon product recalls on a never-ending basis. J&J’s price of about $64.00 compares to a year high of $68.05 and a Thomson Reuters consensus target of $71.88. Thomson Reuters has estimates of $1.35 EPS and $16.26 billion in revenue.
The Coca-Cola Company (NYSE: KO) is trading around $72.75 and is within about 2% of a year-high of $74.39. It remains a key defensive stock holding today and Thomson Reuters has a consensus price target of $76.54 on the name. Thomson Reuters consensus estimates are $0.88 EPS and $10.83 billion in sales.
Thursday, April 19
Bank of America Corporation (NYSE: BAC) is the fourth of the money-center banks to report and investors need to be reminded that shares doubled from trough to peak from December to March during the bank rally. Investors are not chasing book value here. The stock trades around $8.85 and Thomson Reuters has a consensus target of about $9.90. Thomson Reuters has estimates of $0.12 EPS and $22.51 billion in revenue.
Microsoft Corporation (NASDAQ: MSFT) is still within about 5% of a multi-year high ahead of the upcoming Windows O/S release. Shares are just under $31.00, its year-high is $32.95, and Thomson Reuters has a consensus price target of almost $34.00 per share. The consensus target from Thomson Reuters is $0.57 EPS on $17.16 billion in sales.
Verizon Communications, Inc. (NYSE: VZ) is likely not a market-mover any longer because it has a low volatility. What it does have is a monster dividend yield of about 5.4%. Its $37.30 price compares to a 52-week high of $40.48 and to a consensus price target of $39.55. Thomson Reuters has estimates of $0.57 EPS and $28.2 billion in revenue. Thomson Reuters has estimates of $0.57 EPS and $28.2 billion in revenue. This will possibly be considered as the first look to see what Apple’s iPhone and iPad sales have been.
Friday, April 20
American Electric Power Co. Inc. (NYSE: AEP) reports on Friday morning and every dividend investor is going to need to pay close attention here to see how it affects the entire utility sector. At $37.50, the 52-week range is $33.09 to $41.98 and Thomson Reuters has a consensus target of $41.72. The consensus targets are $0.80 EPS and $3.73 billion. What matters here is that many plant closures for power generation are in the process of being closed due to them being coal-fired and it could skew guidance.
General Electric Co. (NYSE: GE) is still under $19.00 versus a year high of $21.00; the consensus target is still up just above $22.25. After raising its dividend twice and after saying its financial outfit is doing better and better, investors are going to be paying close attention here to the biggest conglomerate. Thomson Reuters has estimates of $0.33 EPS and $34.66 billion in revenue.
McDonald’s Corporation (NYSE: MCD) has lost its luster after being the best performing DJIA stock, it has a new CEO taking over, and it has already lowered the bar for what had been extensive and successive same-store sales growth. At $96.50, the 52-week high is $102.22 and the consensus price target is almost $107.00. Thomson Reuters has estimates of $1.23 EPS and $6.54 billion in revenue.
Be advised that the dates may change and the earnings estimates usually change marginally each day or each week as analysts adjust their targets before earnings reports. If you wish to sign up for our free daily email, sign up in the green box below. We send daily notices on feature stories, analyst upgrades and downgrades, market rumors, hot IPOs and secondary offerings and more.
JON C. OGG