Earnings Preview: Alcoa Inc (AA), Wells Fargo & Co (WFC), JPMorgan Chase & Co (JPM), Yum Brands Inc (YUM)

on July 05 2013 8:28 AM

Second-quarter earnings season kicks off next week, with America's biggest aluminum producer, Alcoa Inc. (NYSE: AA), announcing its quarterly results on Monday. Pittsburgh-based Alcoa is seen as a barometer for global manufacturing as its products are used by construction firms, airlines, automakers and home-appliance manufacturers.

A record number of S&P 500 companies have issued negative earnings guidance for the second quarter. So far, S&P 500 companies have issued 97 negative earnings pre-announcements and only 15 positive ones, for a negative-to-positive ratio of 6.5, according to Thomson Reuters. The guidance has contributed to the downward slide in second-quarter growth estimates, with earnings per share currently estimated to grow 3.0 percent, down from the 8.4 percent estimated at the beginning of the year.

As for top-line revenue, expectations are bleak as well. After a first quarter when S&P 500 companies reported an aggregate revenue growth rate of 0.0 percent, the consensus currently calls for 1.8 percent growth in the second quarter.

We ran a screen and produced a list of six notable companies set to report their earnings between Monday and Friday. We have highlighted their expected reporting dates and times, along with analysts' EPS and revenue estimates from Reuters, as well as the stocks' year-to-date performances.

Monday After Market Close, Or AMC:

Alcoa Inc. (NYSE:AA) is engaged in the production and management of primary aluminum, fabricated aluminum and alumina combined, through its participation in technology, mining, refining, smelting, fabricating and recycling. The company has a market capitalization of $8.24 billion. It is expected to report FY 2013 second-quarter EPS of 8 cents on revenue of $5.92 billion, compared with a profit of 6 cents a share on revenue of $5.96 billion in the year-ago period. Alcoa is trading at around $7.70 per share. So far this year, the stock has lost 11.2 percent.

Wednesday Before Market Open, Or BMO

Fastenal Co. (NASDAQ:FAST) is engaged in selling industrial and construction supplies in a wholesale and retail fashion. The company has a market cap of $13.57 billion. It is expected to report FY 2013 second-quarter EPS of 41 cents on revenue of $857.12 million, compared with a profit of 38 cents per share on revenue of $804.89 million in the year-ago period. Fastenal is trading at around $45.76 per share. So far this year, the stock has lost 1.9 percent.

Family Dollar Stores Inc. (NYSE:FDO) operates a chain of self-service retail discount stores primarily for low- and middle-income consumers in the U.S. The company has a market cap of $7.27 billion. It is expected to report FY 2013 third-quarter EPS of $1.03 on revenue of $2.57 billion, compared with a profit of $1.06 a share on revenue of $2.36 billion in the year-ago period. Family Dollar Stores is trading at around $63.25 a share. So far this year, the stock has lost 0.2 percent.

Wednesday AMC

Yum Brands Inc. (NYSE:YUM) is a quick-service restaurant company that owns the KFC, Pizza Hut and Taco Bell brands. The company has a market cap of $31.97 billion. It is expected to report FY 2013 second-quarter EPS of 54 cents on revenue of $2.93 billion, compared with a profit of 67 cents per share on revenue of $3.17 billion in the year-ago period. Yum Brands is trading at around $71.08 per share. So far this year, the stock has gained 7.1 percent.

Friday BMO

JPMorgan Chase & Co. (NYSE:JPM) is a global financial-services firm and a banking institution in the U.S. The company has a market cap of $199.39 billion. It is expected to report FY 2013 second-quarter EPS of $1.43 on revenue of $24.77 billion, compared with a profit of $1.21 per share on revenue of $22.89 billion in the year-ago period. JPMorgan is trading at around $52.78 per share. So far this year, the stock has gained 19.7 percent.

Wells Fargo & Co. (NYSE:WFC) is a bank holding company. The company has a market cap of $218.76 billion. It is expected to report FY 2013 second-quarter EPS of 92 cents on revenue of $21.20 billion, compared with a profit of 82 cents per share on revenue of $21.29 billion in the year-ago period. Wells Fargo is trading at around $41.22 per share. So far this year, the stock has gained 20.6 percent.

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