The week of July 14 to July 18 is going to mark the official launch of earnings season. Already we have seen Alcoa please the street and set a positive bias, but retail and basic consumer spending still seems weaker than any grand recovery. We also have new banking fears in Europe out of Portugal, and a slowing trend that weighed on markets last week.
Before getting too concerned, just keep in mind that the equity markets in the United States are still less than two weeks from having hit new all-time highs.
24/7 Wall St. has taken an earnings montage on the top 11 earnings reports it will be watching this coming week. There are of course other important earnings to watch out for. Our take is that these 11 corporate reports will set the trend of the entire earnings season for other sectors and competitors.
We have used performance measurement screened from FINVIZ.com and taken the earnings estimates from Thomson Reuters. Color has been added on each company as well. As a reminder, these estimates can change (and some will change) before the formal earnings report.
These are the top 11 earnings we will be watching the most closely in the week ahead.
Citigroup Inc. (NYSE: C) is set to report earnings on Monday. It seems hard to imagine that anyone cares about the earnings right now as much as they would the company getting the latest settlement signed and right-sizing more international operations. Outside of that, we hope to hear if there is any progress in getting to amp up that dividend — finally! Estimates are $1.05 earnings per share (EPS) and $18.93 billion in revenue. Citigroup’s performance so far in 2014 is down almost 10%.
Goldman Sachs Group Inc. (NYSE: GS) reports Tuesday morning and is now a major market mover because it is one of the highest priced Dow Jones Industrial Average (DJIA) stocks — so it has a higher importance in actual direct DJIA weighting than J.P. Morgan about three times over. Outside of earnings, the emphasis is on compensation costs, trading revenue/earnings and investment banking. Estimates are $3.05 EPS and $7.97 billion in revenue. Goldman’s performance so far in 2014 is down just over 6%.
Intel Corp. (NASDAQ: INTC) is due to report on Tuesday afternoon. It is the king of processors, and the real question now is how much “taking from the future gains” were seen when Intel raised guidance. The fact that it has yet to make any inroads in mobile has been ignored of late. The question is whether Intel can one-up its prior guidance hike again. Its estimates are $0.52 EPS and $13.69 billion in revenue, and the stock is up almost 12% in the past month and up more than 22% so far in 2014.