Next Week's 11 DJIA Component Earnings On Deck (IBM, JNJ, KO, UTX, MMM, T, TRV, AXP, MSFT, MCD, VZ, DIA)

This week brought about 5 of the 30 Dow Jones Industrial Average components that have reported earnings this earnings season.  We have a mixed fanfare so far, but next week we have a larger group of 11 components reporting earnings and the 3 largest components in the DJIA (price-weighted index) are reporting.  We have compiled estimates and added color in where applicable for International Business Machines Corp. (NYSE: IBM), Johnson & Johnson (NYSE: JNJ), The Coca-Cola Company (NYSE: KO), United Technologies Corp. (NYSE: UTX), 3M Co. (NYSE: MMM), AT&T, Inc. (NYSE: T), The Travelers Companies, Inc. (NYSE: TRV), American Express Company (NYSE: AXP), Microsoft Corporation (NASDAQ: MSFT), McDonald’s Corp. (NYSE: MCD), and Verizon Communications Inc. (NYSE: VZ).  After next Friday, 16 of the DJIA components will have reported earnings.  Needless to say, the DIAMONDs (NYSE: DIA) will be key to watch for a reaction on the major components.

Monday after the close will be earnings from IT and technology behemoth International Business Machines Corp. (NYSE: IBM).  Thomson Reuters has estimates of $2.58 EPS (vs. $2.32 a year ago) and $24.17 billion in revenues; next quarter estimates are $2.73 EPS and $24.45 billion in revenues.  Shares are currently around $128.35 and the 52-week trading range is $106.79 to $134.25. The key metric we watch here is that services order backlog for future growth.  Last quarter was about $134 billion, down about $3 billion sequentially.  The buybacks continue from the company.

Tuesday morning will be medical and consumer products giant Johnson & Johnson (NYSE: JNJ) reports and Thomson Reuters has estimates of $1.21 EPS (vs. $1.15 a year ago) and $15.68 billion in revenues; next quarter estimates are $1.20 EPS and $15.39 billion in revenues.  Shares are currently around $59.70 and the 52-week trading range is $57.55 to $66.20.

Wednesday morning will be beverage giant The Coca-Cola Company (NYSE: KO).  Thomson Reuters has estimates of $1.03 EPS (vs. $0.92 a year ago) and $8.7 billion in revenues; next quarter estimates are $0.89 EPS and $8.35 billion in revenues.  Shares are currently around $52.32 and the 52-week trading range is $47.42 to $59.45.  Coke was recently voted as one of our safest dividends of its class.

Wednesday morning will be conglomerate United Technologies Corp. (NYSE: UTX) and Thomson Reuters has estimates of $1.16 EPS (vs. $1.05 year ago) and $13.56 billion in revenues; next quarter estimates are $1.27 EPS and $13.92 billion in revenues.  Shares are currently around $66.31 and the 52-week trading range is $51.64 to $77.09.

Thursday morning is earnings from conglomerate 3M Co. (NYSE: MMM).  Thomson Reuters has estimates of $1.47 EPS (vs. $1.20 a year ago) and $6.63 billion in revenues; next quarter estimates are $1.45 EPS and $6.59 billion in revenues.  Shares are currently around $81.03 and the 52-week trading range is $61.82 to $90.52.  3M was the safest dividend of conglomerate stocks per our recent vote.

Telecom giant AT&T, Inc. (NYSE: T) is also Thursday morning and Thomson Reuters has estimates of $0.57 EPS and $30.92 billion in revenues; next quarter estimates are $0.56 EPS and $31.24 billion in revenues.  Shares are currently around $24.79 and the 52-week trading range is $23.62 to $28.73.  This one has that monster 6.8% dividend as well.

Thursday morning is The Travelers Companies, Inc. (NYSE: TRV), and Thomson Reuters has estimates of $1.51 EPS (vs. $1.25 year ago) and $5.57 billion in revenues; next quarter estimates are $1.38 EPS and $5.39 billion in revenues.  Shares are currently around $49.92 and the 52-week trading range is $39.97 to $54.82.

Thursday after the close will be earnings from credit card giant American Express Company (NYSE: AXP).  Thomson Reuters has estimates of $0.77 EPS (vs. only $0.09 a year ago) and $6.84 billion in revenues; next quarter estimates are $0.75 EPS and $6.83 billion in revenues.  Shares are currently around $41.60 and the 52-week trading range is $26.66 to $49.19.

Thursday after the close will be software and tech giant Microsoft Corporation (NASDAQ: MSFT).  Thomson Reuters has estimates of $0.46 EPS (vs. $0.36 a year ago) and $15.26 billion in revenues; next quarter estimates are $0.54 EPS and $15.62 billion in revenues.  Shares are currently around $25.00 and the 52-week trading range is $22.73 to $31.58.    While not much new has been out, this is one of our safest dividend stocks in technology.

Friday morning brings earnings from fast food king McDonald’s Corp. (NYSE: MCD).  Thomson Reuters has estimates of $1.12 EPS (vs. $0.97 year ago) and $5.91 billion in revenues; next quarter estimates are $1.22 EPS and $6.07 billion in revenues.  Shares are currently around $70.10 and the 52-week trading range is $53.88 to $71.84.  The market is expecting a better report than what Yum! showed.

Verizon Communications Inc. (NYSE: VZ) is also on Friday morning and Thomson Reuters has estimates of $0.56 EPS (down from $0.63 a year ago) and $27.04 billion in revenues; next quarter estimates are $0.54 EPS and $26.41 billion in revenues.  Shares are currently around $26.76 and the 52-week trading range is $25.99 to $34.13.  Its dividend is now 7.20%.  That recent Frontier restructuring was made, and this was one of our safest dividend votes of late..

As you can see, the earnings season is kicking into full gear here.  For a reference, today’s triple digit loss in the DJIA follows the last two weeks of an 800 point rally from trough to peak.

JON C. OGG