Next Week’s Must See Earnings On Deck (ADM, BP, PFE, ERTS, QCOM, SIRI, KFT, SBUX)

October 29, 2010 by Jon C. Ogg

Next week is the beginning of the end of earnings season as November gets started, but we still have many key earnings to watch and there are still many large companies reporting earnings.  We have compiled previews and added in color where applicable on companies such as Archer Daniels Midland Company (NYSE: ADM), BP plc (NYSE: BP), Pfizer Inc. (NYSE: PFE), Electronic Arts Inc. (NASDAQ: ERTS), QUALCOMM Incorporated (NASDAQ: QCOM), Sirius XM Radio Inc. (NASDAQ: SIRI), Kraft Foods Inc. (NYSE: KFT), and Starbucks Corp. (NASDAQ: SBUX).

Archer Daniels Midland Company (NYSE: ADM) is on deck Tuesday morning with the food giant earnings.  Thomson Reuters has estimates of $0.75 EPS and $15.66 billion in revenues; next quarter estimates are $0.85 EPS and $16.52 billion in revenues.  With shares around $33.20, the 52-week trading range is $24.22 to $34.03.  That is close to a new year high and forward earnings multiples remain  low at 10 to 11 times earnings.

BP plc (NYSE: BP) has earnings and investors, politicians, and activists are all likely to be watching here Tuesday morning.  As the company is global and based in the UK, U.S. estimates may be less reliable.  Thomson Reuters has estimates of $1.53 EPS and $72.46 billion in revenues; next quarter estimates are $1.56 EPS and $68.73 billion in revenues.  With shares around $40.79, the 52-week trading range is $26.75 to $62.38.  investors and traders alike will be paying close attention to that $40.00 as the key.

Pfizer Inc. (NYSE: PFE) has its earnings due Tuesday from the drug giant and DJIA component.  Thomson Reuters has estimates of $0.51 EPS and $16.68 billion in revenues; next quarter estimates are $0.49 EPS and $17.07 billion in revenues.  With shares around $17.49, the 52-week trading range is $14.00 to $20.36.  Now that the company has made a large merger it is integrating, some of the patent pressure may be a bit less.

Electronic Arts Inc. (NASDAQ: ERTS) is the first video game company to report next week and investors are going to be looking for what the holiday season looks like.  It had already given guidance as well that was less than favorable.  Thomson Reuters has estimates of -$0.11 EPS and $812.99 million in revenues; next quarter estimates are $0.71 EPS and $1.45 billion in revenues.  Watch the guidance as Q4 is their great quarter and the year hinges on that quarter.  Maybe we’ll hear more about how social games and apps games are hurting and how it is coping with that.  With shares around $15.70, the 52-week trading range is $14.06 to $20.24.  This stock was nearly a $60 stock before 2008.

QUALCOMM Incorporated (NASDAQ: QCOM) will show earnings and how well its CDMA smartphone device sales are coming on Wednesday after the close. Thomson Reuters has estimates of $0.59 EPS and $2.84 billion in revenues; next quarter estimates are $0.64 EPS and $2.98 billion in revenues.  With shares around $45.43, the 52-week trading range is $31.63 to $49.80.

Sirius XM Radio Inc. (NASDAQ: SIRI) is not one of the most important companies, but it has nearly 20 million users now and it is very actively traded.  Its earnings are due Thursday morning and Thomson Reuters has estimates of $0.00 EPS and $718.69 million in revenues; next quarter estimates are $0.00 EPS and $739.78 billion in revenues.  With shares around $1.47, the 52-week trading range is $0.56 to $1.49.  That $1.49 was hit this morning and there is a belief that $1.50 represents a large hurdle.  The company has raised guidance and everyone still wants to know about the status of Howard Stern’s  contract as it expires at the end of this year.  We’ll also look to see if SIRIUS XM has anymore debt restructuring under the table.

Kraft Foods Inc. (NYSE: KFT) has the DJIA component and food giant’s earnings due on Thursday after the close.  Thomson Reuters has estimates of $0.46 EPS and $12.00 billion in revenues; next quarter estimates are $0.48 EPS and $13.32 billion in revenues.  With shares around $32.20, the 52-week trading range is $26.31 to $32.67.  The business is different now and investors are still adapting to the new structure.  Apparently they are adapting rather well since the stock was just recently on 52-week highs.  On the chart, $33, $34, and $35 have all been approximate resistance targets over the last 5 years and the stock has been one of the many dead-money stocks of the last decade.

Starbucks Corp. (NASDAQ: SBUX) is on deck next Thursday after the closing bell.  Thomson Reuters has estimates for the coffee retail giant of $0.32 EPS and $2.77 billion in revenues; next quarter estimates are $0.38 EPS and $2.91 billion in revenues.  With shares around $28.61, the 52-week trading range is $18.85 to $28.80.  Valuations here are still elevated and recently hitting new highs will create a situation where Starbucks needs to beat and raise guidance just to keep the stock where it is.

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JON C. OGG