Financial Professionals

Market Insights

A A A

Earnings Calendar: Week of July 23, 2012

07/23/2012

The week of July 23, 2012 has 172 more S&P 500® Index (SPX) companies reporting second quarter earnings. By the end of the upcoming week, 58% of the SPX will have reported.

 

The bulk of the earnings will be delivered mid-week with 41 companies reporting on Tuesday, 49 on Wednesday, and 63 on Thursday. Those earnings are bookended by 7 on Monday and 12 on Friday.

 

Below is a full schedule for the week with EPS consensus estimates included. Additionally, here are 4 reports that I expect will have the ability to impact the direction of the SPX.

 

McDonald’s (MCD) – Monday, July 23, before the market opens

 

  • Revenue expectations are for $6.97 billion. I have repeated throughout the second quarter that MCD is a proxy for investor expectations for a European outcome.  As of March 31, 2012, Europe accounts for 39% of MCD revenue, while the United States accounts for 32%. Expectations for June comp sales are weak:  +2.1% globally, +0.4% in Europe, and +2.8% in the United States. For the second quarter, comp sales expectations are +2.9% globally, +2.4% in Europe, and +3.5% in the U.S.  

 

 

 

Source: Bloomberg

 

Apple (AAPL) – Tuesday, July 24, after the market closes

 

  • AAPL is currently +49% year to date and +3.48% for the month of July, beating the SPX on both metrics. AAPL has remained strong despite expectations that the current macro environment in Europe and China will lead to a “quarterly miss.”  Keep in mind that during last quarter’s earnings conference call, AAPL CEO Tim Cook did cite the astounding Chinese demand. The question now is, has that demand softened along with the macro environment? I suspect that even if AAPL does miss on Tuesday, the expectations for a calendar Q4 IPhone 5 release will provide enough support under the market to prevent a significant price decline.  Also, I would pay attention to any commentary regarding the upcoming back-to-school season. AAPL has prepared well for that with a Mac line refresh this quarter.

 

 

Source: Bloomberg

 

Caterpillar (CAT) – Wednesday, July 25, before the market opens

 

  • Expectations for the upcoming CAT earnings are low. The weakening overall macro environment has led to significant deterioration in the price of CAT year to date and multiple analysts lowering both price targets and EPS.  A beat from CAT will mostly likely be driven by exceptional expense management, not improving global demand. However, there is plenty of upside potential for the industrial sector should CAT surprise to the upside in earnings and offer guidance/commentary that is not aligned with slowing macroeconomic conditions.   

 

 

Source: Bloomberg

 

Starbucks (SBUX) – Thursday, July 26, after the market closes

 

  • Analyst expectations are for EPS of $0.45, Q2 revenue of $3.33 billion, and Q3 guidance of $3.45 billion.  Nielsen just reported that SBUX continues to gain market share in the K-Cup segment, with a new high of 15%. I expect there is much more market share for them to gain in the Keurig world. Commentary on the new Verismo system coming for the 2012 holiday season should be a tailwind, in particular here in the U.S.  Revenue generation in the U.S. was 74% on March 31, 2012. I expect SBUX this Thursday to provide investors with a much needed glimpse inside the discretionary spending habits of the U.S. consumer during a quarter of market depreciation and overwhelmingly negative headlines.  

 

 

Source: Bloomberg

 

 

   

 

Monday, July 23, 2012

 

EPS Estimate

Coca-Cola Enterprises Inc

CCE

 $                    0.73

Eaton Corp

ETN

 $                    1.08

Halliburton Co

HAL

 $                    0.75

Hasbro Inc

HAS

 $                    0.24

McDonald's Corp

MCD

 $                    1.38

Texas Instruments Inc

TXN

 $                    0.34

Zions Bancorporation

ZION

 $                    0.35

 

 

 

Tuesday July 24, 2012

 

EPS Estimate

Aflac Inc

AFL

 $                    1.61

Air Products & Chemicals Inc

APD

 $                    1.41

Altera Corp

ALTR

 $                    0.39

Altria Group Inc

MO

 $                    0.57

Apple Inc

AAPL

 $                 10.39

AT&T Inc

T

 $                    0.63

Avery Dennison Corp

AVY

 $                    0.54

Biogen Idec Inc

BIIB

 $                    1.56

Broadcom Corp

BRCM

 $                    0.67

Cabot Oil & Gas Corp

COG

 $                    0.06

CH Robinson Worldwide Inc

CHRW

 $                    0.71

Edwards Lifesciences Corp

EW

 $                    0.65

EI du Pont de Nemours & Co

DD

 $                    1.46

EMC Corp/MA

EMC

 $                    0.39

FMC Technologies Inc

FTI

 $                    0.48

Illinois Tool Works Inc

ITW

 $                    1.10

International Game Technology

IGT

 $                    0.28

Juniper Networks Inc

JNPR

 $                    0.16

Lexmark International Inc

LXK

 $                    0.93

Linear Technology Corp

LLTC

 $                    0.45

Lockheed Martin Corp

LMT

 $                    1.91

Nabors Industries Ltd

NBR

 $                    0.37

Netflix Inc

NFLX

 $                    0.05

Newfield Exploration Co

NFX

 $                    0.64

Norfolk Southern Corp

NSC

 $                    1.53

PACCAR Inc

PCAR

 $                    0.81

Peabody Energy Corp

BTU

 $                    0.53

Range Resources Corp

RRC

 $                    0.09

Regions Financial Corp

RF

 $                    0.14

Reynolds American Inc

RAI

 $                    0.77

Robert Half International Inc

RHI

 $                    0.35

Rockwell Collins Inc

COL

 $                    1.15

Ryder System Inc

R

 $                    0.93

Sigma-Aldrich Corp

SIAL

 $                    0.97

Simon Property Group Inc

SPG

 $                    1.81

Total System Services Inc

TSS

 $                    0.32

TripAdvisor Inc

TRIP

 $                    0.42

United Parcel Service Inc

UPS

 $                    1.17

Waters Corp

WAT

 $                    1.16

Western Union Co/The

WU

 $                    0.43

Whirlpool Corp

WHR

 $                    1.69

 

 

 

Wednesday July 25, 2012

 

EPS Estimate

ACE Ltd

ACE

 $                    1.91

Airgas Inc

ARG

 $                    1.15

Akamai Technologies Inc

AKAM

 $                    0.37

Alexion Pharmaceuticals Inc

ALXN

 $                    0.36

Allegheny Technologies Inc

ATI

 $                    0.55

Assurant Inc

AIZ

 $                    1.41

AvalonBay Communities Inc

AVB

 $                    1.34

Boeing Co/The

BA

 $                    1.12

Bristol-Myers Squibb Co

BMY

 $                    0.49

Caterpillar Inc

CAT

 $                    2.29

Citrix Systems Inc

CTXS

 $                    0.60

Cliffs Natural Resources Inc

CLF

 $                    1.77

ConocoPhillips

COP

 $                    1.19

Cooper Industries PLC

CBE

 $                    1.12

Corning Inc

GLW

 $                    0.31

CR Bard Inc

BCR

 $                    1.64

Crown Castle International Corp

CCI

 $                    0.17

Eli Lilly & Co

LLY

 $                    0.76

Equifax Inc

EFX

 $                    0.72

Equity Residential

EQR

 $                    0.68

Ford Motor Co

F

 $                    0.29

General Dynamics Corp

GD

 $                    1.74

Hess Corp

HES

 $                    1.38

Lam Research Corp

LRCX

 $                    0.65

Lorillard Inc

LO

 $                    2.32

LSI Corp

LSI

 $                    0.17

MeadWestvaco Corp

MWV

 $                    0.39

Motorola Solutions Inc

MSI

 $                    0.69

NASDAQ OMX Group Inc/The

NDAQ

 $                    0.60

Northrop Grumman Corp

NOC

 $                    1.61

O'Reilly Automotive Inc

ORLY

 $                    1.14

Owens-Illinois Inc

OI

 $                    0.76

PepsiCo Inc

PEP

 $                    1.10

Praxair Inc

PX

 $                    1.42

Rockwell Automation Inc

ROK

 $                    1.31

Southern Co/The

SO

 $                    0.68

Stericycle Inc

SRCL

 $                    0.80

Symantec Corp

SYMC

 $                    0.38

T Rowe Price Group Inc

TROW

 $                    0.81

TE Connectivity Ltd

TEL

 $                    0.78

Teradyne Inc

TER

 $                    0.58

Thermo Fisher Scientific Inc

TMO

 $                    1.16

Torchmark Corp

TMK

 $                    1.30

Varian Medical Systems Inc

VAR

 $                    0.93

Visa Inc

V

 $                    1.45

WellPoint Inc

WLP

 $                    2.08

Western Digital Corp

WDC

 $                    2.45

Whole Foods Market Inc

WFM

 $                    0.61

Wyndham Worldwide Corp

WYN

 $                    0.84

 

 

 

Thursday July 26, 2012

 

EPS Estimate

3M Co

MMM

 $                    1.65

Amazon.com Inc

AMZN

 $                    0.02

Ameriprise Financial Inc

AMP

 $                    1.35

AmerisourceBergen Corp

ABC

 $                    0.69

Amgen Inc

AMGN

 $                    1.55

Ball Corp

BLL

 $                    0.87

Bemis Co Inc

BMS

 $                    0.52

BorgWarner Inc

BWA

 $                    1.37

Boston Scientific Corp

BSX

 $                    0.10

CA Inc

CA

 $                    0.60

Cameron International Corp

CAM

 $                    0.72

Celgene Corp

CELG

 $                    1.18

Cerner Corp

CERN

 $                    0.54

Chubb Corp/The

CB

 $                    1.15

Cincinnati Financial Corp

CINF

 $                    0.11

CME Group Inc

CME

 $                    4.12

CMS Energy Corp

CMS

 $                    0.38

Colgate-Palmolive Co

CL

 $                    1.33

CONSOL Energy Inc

CNX

 $                    0.32

Covidien PLC

COV

 $                    1.06

Dow Chemical Co/The

DOW

 $                    0.64

Dr Pepper Snapple Group Inc

DPS

 $                    0.82

EQT Corp

EQT

 $                    0.31

Expedia Inc

EXPE

 $                    0.72

Exxon Mobil Corp

XOM

 $                    1.95

Federated Investors Inc

FII

 $                    0.40

FLIR Systems Inc

FLIR

 $                    0.31

Gilead Sciences Inc

GILD

 $                    0.95

Hershey Co/The

HSY

 $                    0.61

International Paper Co

IP

 $                    0.46

Interpublic Group of Cos Inc/The

IPG

 $                    0.21

Invesco Ltd

IVZ

 $                    0.43

Iron Mountain Inc

IRM

 $                    0.31

Kimberly-Clark Corp

KMB

 $                    1.28

KLA-Tencor Corp

KLAC

 $                    1.32

L-3 Communications Holdings Inc

LLL

 $                    1.99

Leggett & Platt Inc

LEG

 $                    0.36

McGraw-Hill Cos Inc/The

MHP

 $                    0.76

McKesson Corp

MCK

 $                    1.48

Mead Johnson Nutrition Co

MJN

 $                    0.77

MetroPCS Communications Inc

PCS

 $                    0.22

Moody's Corp

MCO

 $                    0.71

Mylan Inc/PA

MYL

 $                    0.55

National Oilwell Varco Inc

NOV

 $                    1.40

NextEra Energy Inc

NEE

 $                    1.16

Noble Energy Inc

NBL

 $                    0.99

Occidental Petroleum Corp

OXY

 $                    1.66

Precision Castparts Corp

PCP

 $                    2.36

Principal Financial Group Inc

PFG

 $                    0.74

Prologis Inc

PLD

 $                    0.42

PulteGroup Inc

PHM

 $                    0.06

Raytheon Co

RTN

 $                    1.23

Republic Services Inc

RSG

 $                    0.49

Sprint Nextel Corp

S

 $                 (0.41)

Starbucks Corp

SBUX

 $                    0.45

Starwood Hotels & Resorts Worldwide Inc

HOT

 $                    0.62

United Technologies Corp

UTX

 $                    1.42

Ventas Inc

VTR

 $                    0.92

VeriSign Inc

VRSN

 $                    0.45

Vulcan Materials Co

VMC

 $                    0.06

Waste Management Inc

WM

 $                    0.53

Watson Pharmaceuticals Inc

WPI

 $                    1.38

Zimmer Holdings Inc

ZMH

 $                    1.32

 

 

 

Friday July 27, 2012

 

EPS Estimate

Aon PLC

AON

 $                    1.02

CBRE Group Inc

CBG

 $                    0.26

Chevron Corp

CVX

 $                    3.23

Coventry Health Care Inc

CVH

 $                    0.64

DR Horton Inc

DHI

 $                    0.20

DTE Energy Co

DTE

 $                    0.70

Helmerich & Payne Inc

HP

 $                    1.15

Legg Mason Inc

LM

 $                    0.18

Merck & Co Inc

MRK

 $                    1.01

Newell Rubbermaid Inc

NWL

 $                    0.45

Newmont Mining Corp

NEM

 $                    0.96

Weyerhaeuser Co

WY

 $                    0.10

Virtus Investment Partners provides this communication as a matter of general information. The opinions stated herein are those of the author and not necessarily the opinions of Virtus, its affiliates or its subadvisers. Portfolio managers at Virtus make investment decisions in accordance with specific client guidelines and restrictions. As a result, client accounts may differ in strategy and composition from the information presented herein. Any facts and statistics quoted are from sources believed to be reliable, but they may be incomplete or condensed and we do not guarantee their accuracy. This communication is not an offer or solicitation to purchase or sell any security, and it is not a research report. Individuals should consult with a qualified financial professional before making any investment decisions.