7 More DJIA Stocks on Earnings Deck (BA, MMM, AXP, T, MCD, MRK, MSFT, MO, HON)

We have already run the 5 of the 30 DJIA components that reported earnings this morning.  But we still have 7 more of the 30 DJIA components reporting during the rest of this week alone.   The Boeing Company (NYSE: BA), 3M Company (NYSE: MMM), American Express Company (NYSE: AXP), AT&T, Inc. (NYSE: T), McDonald’s Corporation (NYSE: MCD), Merck & Co., Inc. (NYSE: MRK), and Microsoft Corporation (NASDAQ: MSFT) are all on the earnings docket this week.   We also have earnings from Altria Group, Inc. (NYSE: MO) and from Honeywell International Inc. (NYSE: HON), both of which are ex-DJIA components that many traders and investors still think of as Blue Chips.

We have created detailed earnings previews for each stock with consensus estimates from Thomson Reuters, as well as earnings data and color for what to watch out for where applicable.  Also included is how much each stock has rallied since June 30 and since the March 9 close that all traders mark as the low index closing date and the end of the death-spiral bear market we were in earlier this year.

The Boeing Company (NYSE: BA) is the only DJIA component reporting on Wednesday.  Despite the major setbacks and despite the delays for its Dreamliner, this stock has held up very well as many hope for a 2010 and 2011 recovery.  Boeing’s Q3 estimates are -$2.12 EPS on $17.18 billion in revenues, and next quarter’s estimates are $1.30 EPS and $16.92 billion in revenues.  These estimates have come down sharply for earnings over the last two months as its problems have persisted.  Shares are up about 22% since June 30 and are up a sharp 69% since the March 9 close. This would be up more, but it caught an analyst downgrade Tuesday morning ahead of earnings.

3M Company (NYSE: MMM) is on deck for Thursday.  The conglomerate is expected to post $1.17 EPS and $5.75 billion in revenues.  Estimates for its Q4 ahead are $1.06 EPS and $5.55 billion in revenue.  3M is far smaller than rival conglomerate G.E., but it never imploded to the point that G.E. did during the market meltdown because it does not have as broad of a finance unit.  Shares are very close to 52-week highs and there are frankly too many moving parts to point to any single metric to watch outside of the net results.  Shares are up about 28% since June 30 and are up just over 80% since the March 9 close.

American Express Company (NYSE: AXP) is on deck for Thursday afternoon.  Estimates are $0.37 EPS, above the $0.36 estimate of last week, and $5.9 billion in revenues.  The change in estimates is because it noted last week that delinquencies had stabilized and after many other solid financial companies were posting better than expected numbers.  Be advised that before any banks had reported, estimates here were $0.34 EPS and had been only $0.30 less than two months ago.  Shares are up a full 56% since June 30 and are up a whopping 250% since the March 9 close.

The old Ma-Bell, AT&T, Inc. (NYSE: T) is also on deck Thursday.  The telecom giant is expected to post $0.50 EPS on $30.87 billion in revenues, and its Q4 ahead estimates are $0.50 EPS and $30.87 billion in revenues as well.  It is interesting that there has been no real benefit today in the Apple upside from the iPhone, but that may be a tail wagging the dog.  We’ll be paying close attention to uVerse cable/fiber sign-ups, its wireless net adds, and its losses of traditional land lines.  AT&T almost made our list of stocks that the rally had left behind, but was not included because two other telecoms had been absolute duds.  Shares are up about 8% since June 30 and are up about 25% since the March 9 close.

McDonald’s Corporation (NYSE: MCD) is also up for earnings Thursday morning.  The Golden Arches is expected to post $1.11 EPS and $6.1 billion in revenues.  Its Q4 ahead quarter is expected to have earnings of $0.99 EPS on $5.89 billion in revenues.  McDonald’s was also one of the stocks that almost made the list of stocks that the rally left behind, but Burger King beat it.  The big question for McDonald’s is how much more upside it can see now that the recession is abating and with a forward 2009 expected P/E ratio of right above 15.  The company has managed to do incredible well through time, so we won’t spend too much time for a pop quiz on the fast food king.  Shares are up about 4% since June 30 and are up 15% since the March 9 close.

Merck & Co., Inc. (NYSE: MRK) is the last of the drug giants on deck this week with earnings due Thursday morning.  We have estimates at $0.82 EPS on $6 billion in revenues.  Its Q4 estimates are $0.84 EPS on $6.16 billion in revenues; and Fiscal Dec-2009 is expected at $3.23 EPS and $23.44 billion in revenues.  After Pfizer’s report today with its post-Wyeth guidance, it is a safe bet that Wall Street does not want to hear much caution on earnings even if the gains come from cost cutting.  Shares are up about 23% since June 30 and are up about 65% since the March 9 close.

Microsoft Corporation (NASDAQ: MSFT) has changed its reporting structure now to a Friday-morning format.  The software and tech giant is expected to post $0.32 EPS and $12.36 billion in revenues, and the next quarter estimates are $0.52 EPS and $17.07 billion in revenues.  There are too many moving parts to peg just one issue here, but we would still view the release of Windows 7 as the biggest upcoming event to watch despite some temperance being signaled by Steve Ballmer.  Shares are up about 10% since June 30 and are up about 74% since the March 9 close.

Altria Group, Inc. (NYSE: MO) is on deck for Wednesday morning. Technically, this is no DJIA  DJIA “>component after being replaced in February 2009 after the Phillip Morris International spin-off.  Yet, many traders still consider this a DJIA component.  The estimates are $0.47 EPS and $4.66 billion in revenues.  Despite a recent dividend hike, this one was one our screened out stocks that the rally has left behind.  Shares are up about 15.5% since June 30 and are up 24% since the March 9 close.  Altria was an underperformer in the sector and was also one of our screened out stocks that the rally had left behind.

Honeywell International Inc. (NYSE: HON) was another booted DJIA DJIA “>component, but many still think of it as a DJIA component.  It also never blew up as bad as G.E. as it also does not have anywhere near as broad of a finance unit.  Honeywell was once a long-ago buyout target of G.E., but that buyout was blocked by the European Union in 2001.  As Honeywell is a conglomerate, we might watch transport and aerospace, but it is hard to pin any single metric here.  Shares are up about 23% since June 30 and are up 67% since the March 9 close.

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JON C. OGG
OCTOBER 20, 2009