The 15 Corporate Earnings That Will Rule The Markets This Summer (AA, YUM, JPM, GOOG, C, AMZN, AMR, AN, MSFT, AAPL, KO, JNJ, UNH, INTC, EMC)

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Citigroup Inc (NYSE: C) is due to report on Friday, July 15, and this will likely reset the tone for the rest of the banks.  Thomson Reuters has estimates of $0.97 EPS and $19.94 billion in revenues; next quarter estimates are $1.01 EPS and $19.89 billion in revenues.  At $41.90, the market cap is roughly $122 billion and the 52-week trading range is $36.30 to $51.50.  Citi is going to prelude BofA this year and we are looking at Citi as the bank that will be used for the rest of the sector.  With Vikram Pandit having given a stated book value of $58.50 and a tangible book value of $46.90, shares are currently under $42.00.  Just like with JPMorgan, we expect to hear about ongoing credit metric improvements.

Amazon.com Inc. (NASDAQ: AMZN) is due on Monday, July 18. Thomson Reuters has estimates of $0.35 EPS and $9.36 billion in revenues; next quarter estimates are $0.49 EPS and $10.31 billion in revenues.  At  $214.40 today, the market cap is roughly $97 billion and the 52-week trading range is $105.80 to $214.45.  Amazon may have tax issues in states, but the reality is that consumers buy items when there is tax and when there is not.  We now use Amazon for the proxy for online and offline consumer spending because this offers a live reality in what would be a price-match environment.  This can have ramifications far and wide in retail.  On a more specific note, we have been amazed at how the investing community has accepted that Amazon’s major margin shrinkage has been without any real challenge to the stock.  If investors cheer Amazon for one more quarter of earnings, it will be the next mega-cap stock as we have opined before.

AMR Corporation (NYSE: AMR) is also tentatively due on Monday, July 18 and Thomson Reuters has estimates of a loss of -$0.58 EPS and $6.17 billion in revenues; next quarter estimates are effectively $0.00 EPS and $6.41 billion in revenues.  At  $5.29, the market cap is roughly $1.8 billion and the 52-week trading range is $5.25 to $8.98.  AMR is going to be the first of the legacy carriers with earnings by our first look at the forward calendars so far. It is also being driven by its international segment, a trend to watch.  AMR has now reported that June capacity was up 1.8% and traffic was up 1.3% with an 86.3% load factor. It boarded 7.7 million passengers and International traffic rose while domestic traffic actually decreased. The airline had nearly $6 billion in restricted cash as of its last earnings report and the company’s prior guidance offered was: “AMR expects its full-year mainline capacity to be 1.4 percentage points lower than originally planned or up 2.2 percent versus 2010, with domestic capacity down 0.5 percent and international capacity up 6.2 percent compared to 2010 levels. On a consolidated basis, full-year capacity will be up 2.8 percent.”

Autonation Inc (NYSE: AN) is due Monday, July 18, and it has estimates of $0.47 EPS and $3.45 billion in revenues; next quarter estimates are $0.47 EPS and $3.51 billion in revenues.  At  $37.82 today, the market cap is roughly $5.6 billion and the 52-week trading range is $18.08 to $37.86.  This is going to have to act as a prelude to Ford, GM, Toyota, and other auto sales figures for both new cars and used cars.  The data has already shown some improvement in June, perhaps even better than what we would have expected when considering other slowdown data.

International Business Machines Corporation (NYSE: IBM) is due on Monday, July 18 and it has estimates of $3.03 EPS and $25.35 billion in revenues; next quarter estimates are $3.18 EPS and $25.65 billion in revenues.  At about $177.50 today, the market cap is roughly $214 billion and the 52-week trading range is $122.17 to $177.77.  Keep in mind that this $177.77 high was just hit on Wednesday.  IBM may matter less to the boots on the ground, but investors have to understand that its $170+ stock price influences the Dow Jones Industrial Average more than any other stock by a considerable amount due to the DJIA’s price-weighted index status rather than being tied to market caps.  IBM, of course, impacts many stocks as other tech giants do, but it is this dominance of the DJIA that makes the most difference.  We always look at the backlog, listed as $142 billion last quarter, but the key we are looking for is whether or not IBM still communicates that $20.00 EPS long-term goal or not.

Microsoft Corp (NASDAQ: MSFT) has estimates of $0.58 EPS and $17.27 billion in revenues; next quarter estimates are $0.67 EPS and $17.43 billion in revenues.  At  $26.33 today, the market cap is roughly $222 billion and the 52-week trading range is $23.32 to $29.46.  Steve Ballmer has many things going for the company, and a whole history of drags at the same time.  We will be looking to see how this Skype integration is coming, how that fits in with the Facebook integration, how the Windows 8 launch is expected to go, more on Windows 7 sales, and more.  Microsoft no longer moves the entire technology sector as it used to, but it is a DJIA component and it still influences how the world treats the enterprise sales.  Oracle’s lack of a run with its earnings report gives this an implied “news neutral bias” if there is such a thing.  This will mark year-end with its June annual calendar and we look forward to hear of the 2012 expected growth of about 7% in earnings and just over 6% in revenues can be lived up to.