Top 5 Earnings for the Week Ahead

Print Email

24/7 Wall St. has put together a preview of some of the major companies reporting their quarterly results this week. We are just entering into a new earnings season in which most major companies will report and set a direction for the market. We have included the consensus earnings estimates from Thomson Reuters and the stock price and trading history, as well as added some additional color on each.

Be advised that the earnings and revenue estimates may change ahead of the formal reports, and some companies may change reporting dates as well.

Alcoa

On Monday, Alcoa Inc. (NYSE: AA) will share its most recent quarterly results. The consensus estimates call for earnings per share (EPS) of $0.10 and $5.20 billion in revenue.

The company has offered some details regarding the company’s plan to divide into two pieces. The plan was first announced in September of last year. The filing on behalf of Alcoa Upstream said the separation will include a pro rata distribution of at least 80.1% of Alcoa Upstream stock in a tax-free manner to existing shareholders of Alcoa stock. At the time of the separation, Alcoa Upstream will be renamed Alcoa and will trade on the New York Stock Exchange with the existing AA ticker symbol. The current Alcoa will change its name to Arconic and change its ticker symbol from AA to ARNC. Arconic will own 19.9% of Alcoa stock following the separation. For further details on the separation click here.

Shares traded at $9.82 on the close on Friday, in a 52-week trading range of $6.14 to $11.50. The stock has a consensus analyst price target of $10.96.

Yum Brands

Second-quarter results from Yum! Brands Inc. (NYSE: YUM) are expected on Wednesday. The consensus estimates call for $0.74 in EPS, as well as $3.08 billion in revenue. The company recently announced that its board of directors has approved a significant share repurchase plan for 2016. The board authorized a repurchase program up to $4.2 billion in additional shares of common stock, while also announcing a quarterly dividend of $0.46 per share.

Shares ended last week at $85.76 apiece. The consensus price target is $86.95. The stock has a 52-week trading range of $64.58 to $92.33.

JPMorgan

The first of the big banks to report is JPMorgan Chase & Co. (NYSE: JPM), set to reveal its second-quarter results on Thursday. The analysts’ consensus estimates call for EPS of $1.44 and $24.10 billion in revenue.

This stock trades around a very low 11 times estimated 2016 forward earnings and would do well in a rising rate scenario. JPMorgan is expected to benefit from commercial loan growth and an upturn in capital spending. Wall Street analysts agree that the stock seems attractively valued on estimated price-to-earnings and a very solid price-to-book value. Some on Wall Street have cautioned that last year’s divestiture of the physical commodities business could provide an earnings headwind throughout this year. Even recently the stock has been under fire from Brexit concerns.

Shares were changing hands at $61.83 as Friday’s trading came to a close. The consensus price target is $70.65, and the stock has a 52-week range of $50.07 to $70.61.

Citigroup

First thing on Friday, Citigroup Inc. (NYSE: C) is scheduled to report its second-quarter results. The consensus analyst estimates from Wall Street call for $1.14 in EPS and revenue of $17.71 billion.

This company saw the biggest hike of the major money-center banks after they released their capital return plans. Citi’s quarterly common stock dividend will be raised to $0.16 per share, up from $0.05 per share. That June 29 closed ($42.12) generated a yield of 1.5%. Citigroup is also approving a common stock repurchase program of up to $8.6 billion (during the four quarters starting in the third quarter of 2016) versus roughly a $120 billion market cap.

Shares of Citigroup closed at $42.02 on Friday. The consensus price target is $54.72. The 52-week trading range is $34.52 to $60.95.

Wells Fargo

Wells Fargo & Co. (NYSE: WFC) is set to share its latest quarterly earnings before Friday’s opening bell as well. The consensus estimates call for $1.01 in EPS and $22.21 billion in revenue. This large cap bank is another stock for investors to look at now for safety, dividends and solid upside potential. Wells Fargo is a nationwide, diversified, community-based financial services company with $1.8 trillion in assets.

Shares traded at $47.79 on Friday’s close, in a 52-week trading range of $44.50 to $58.77. The stock has a consensus price target of $54.62.