Earnings Preview: Microsoft Corporation (MSFT), Advanced Micro Devices Inc (AMD), Delta Air Lines Inc (DAL), Verizon Communications Inc (VZ), eBay Inc (EBAY)

on January 17 2014 6:30 AM
Delta
A Delta Air Lines jet takes off past a Northwest Airline jets parked at gates at the Minneapolis St.Paul International Airport, Oct. 30, 2008. REUTERS/Eric Miller

Fourth-quarter earnings season will continue in full force next week, with big names like Microsoft, Starbucks and Johnson & Johnson scheduled to announce results.

Among the 6 percent of S&P 500 (INDEXSP:.INX) companies that have reported earnings so far, only 48 percent of earnings are beating expectations, below the long-term average of 63 percent for a full season.

According to S&P Capital IQ, Wall Street analysts expect fourth-quarter 2013 S&P 500 operating earnings per share to rise 5.6 percent from a year earlier.

“If near-term history is any guide, for it is never gospel, the average difference between the beginning-of-quarter estimate and end-of-quarter actual has been 4.3 percentage points over the past 12 quarters, and 3.4 points during the trailing four quarters. Therefore, should fourth quarter actuals show a similar magnitude of outperformance, we could see EPS growth of between 9.2 percent and 10.1 percent, based on the Jan. 2, 2014 estimate of 5.8 percent,” notes Sam Stovall, chief equity strategist at S&P Capital IQ, in a Wednesday note.

In the third quarter of last year, actual S&P 500 EPS exceeded estimates by only 2.3 percentage points, as earnings rose by 5.7 percent, versus the Oct. 1, 2013, estimate of 3.4 percent, according to Stovall.

We ran a screen and produced a list of 46 notable companies set to report their earnings between Jan. 21 and Jan. 24. We've highlighted their expected reporting dates and times, along with analysts' earnings-per-share (fully reported) and revenue estimates from Thomson Reuters, as well as the stocks' trailing 12-month performances.

Tuesday Before Markets Open, or BMO:

Baker Hughes Incorporated (NYSE:BHI) is engaged in the oil-field-services industry. The company has a market cap of $23.71 billion. It is expected to report FY 2013 fourth-quarter EPS of 73 cents on revenue of $5.73 billion, compared with a profit of 49 cents a share on revenue of $5.22 billion in the year-ago period. Baker Hughes is trading at around $53.42 a share. In the past 12 months, the stock has gained 24.2 percent.

Delta Air Lines, Inc. (NYSE:DAL) provides scheduled air transportation for passengers and cargo throughout the United States and around the world. The company has a market capitalization of $26.95 billion. It is expected to report FY 2013 fourth-quarter EPS of $2.58 on revenue of $9.03 billion, compared with a profit of one cent a share on revenue of $8.60 billion in the year-ago period. Delta Air Lines Inc. is trading at around $31.50 a share. In the past 12 months, the stock has gained 136.0 percent.

Forest Laboratories, Inc. (NYSE:FRX) develops, manufactures and sells branded forms of ethical drug products, which requires a physician's prescription. The company has a market capitalization of $18.62 billion. It is expected to report a loss of 1 cent in the third quarter of fiscal year 2014 on revenue of $828.04 million, compared with a loss of 58 cents a share on revenue of $722.69 million in the year-ago period. Forest Laboratories Inc. is trading at around $69.10 a share. In the past 12 months, the stock has gained 81.3 percent.

Halliburton Co. (NYSE:HAL) is an oil-field-services company. The company has a market cap of $46.26 billion. It is expected to report an FY 2013 fourth-quarter EPS of 89 cents on revenue of $7.56 billion, compared with a profit of 72 cents a share on revenue of $7.29 billion in the year-ago period. Halliburton is trading at around $50.78 a share. In the past 12 months, the stock gained 40.2 percent.

Johnson & Johnson (NYSE:JNJ) is engaged in the research and development, manufacture and sale of a range of products in the health-care field. The company has a market cap of $266.88 billion. It is expected to report FY 2013 fourth-quarter EPS of $1.16 on revenue of $17.95 billion, compared with a profit of 91 cents a share on revenue of $17.56 billion in the year-ago period. J&J is trading at around $94.53 a share. Over the past 12 months, the stock has gained 30.3 percent.

Regions Financial Corp. (NYSE:RF) is a financial holding company with a market cap of $14.44 billion. It is expected to report FY 2013 fourth-quarter EPS of 20 cents on revenue of $1.31 billion, compared with a profit of 18 cents per share on revenue of $1.35 billion in the year-ago period. Regions Financial is trading at around $10.47 a share. Over the past 12 months, the stock has gained 41.9 percent.

Synovus Financial Corp. (NYSE:SNV) is a financial services and a bank holding company with a market cap of $3.55 billion. It is expected to report FY 2013 fourth-quarter EPS of 5 cents on revenue of $270.50 million, compared with a profit of 78 cents per share on revenue of $287.57 million in the year-ago period. Synovus Financial Corp. is trading at around $3.65 a share. Over the past 12 months, the stock has gained 40.9 percent.

TD Ameritrade Holding Corp. (NYSE:AMTD) is a provider of securities brokerage services and technology-based financial services. The company has a market cap of $17.73 billion. It is expected to report FY 2014 first-quarter EPS of 33 cents on revenue of $734.98 million, compared with a profit of 27 cents per share on revenue of $651.00 million in the year-ago period. TD Ameritrade Holding Corp. is trading at around $32.19 a share. Over the past 12 months, the stock has gained 78.2 percent.

The Travelers Companies Inc. (NYSE:TRV) provides a range of commercial and personal property and casualty insurance products and services. The company has a market cap of $31.73 billion. It is expected to report FY 2013 fourth-quarter EPS of $2.09 on revenue of $5.45 billion, compared with a profit of 78 cents a share on revenue of $5.39 billion in the year-ago period. The Travelers Companies is trading at around $87.16 a share. Over the past 12 months, the stock has gained 15.4 percent.

Verizon Communications Inc. (NYSE:VZ) is a provider of communications, information and entertainment products and services to consumers, businesses and governmental agencies. The company has a market cap of $138.45 billion. It is expected to report FY 2013 fourth-quarter EPS of 57 cents on revenue of $31.04 billion, compared with a loss of $1.48 a share on revenue of $30.05 billion in the year-ago period. Verizon is trading at around $48.38 a share. Over the past 12 months, the stock has gained 16.5 percent.

Tuesday After Markets Close, or AMC:

Cree, Inc. (NASDAQ:CREE) is a multinational manufacturer of semiconductor light-emitting diode materials and devices. The company has a market cap of $7.65 billion. It is expected to report FY 2014 second-quarter EPS of 25 cents on revenue of $412.36 million, compared with a profit of 18 cents a share on revenue of $346.29 million in the year-ago period. Cree Inc. is trading at around $63.37 a share. Over the past 12 months, the stock has gained 94.4 percent.

Advanced Micro Devices Inc. (NYSE:AMD) is a global semiconductor company with a market cap of $3.20 billion. It is expected to report an FY 2013 fourth-quarter EPS of 5 cents on revenue of $1.54 billion, compared with a loss of 63 cents a share on revenue of $1.16 billion in the year-ago period. Advanced Micro Devices is trading at around $4.42 a share. Over the past 12 months, the stock has gained 62.5 percent.

Texas Instruments Incorporated (NASDAQ:TXN) designs and makes semiconductors, which it sells to electronics designers and manufacturers globally. The company has a market capitalization of $47.55 billion. It is expected to report FY 2013 fourth-quarter EPS of 46 cents on revenue of $2.99 billion, compared with a profit of 23 cents a share on revenue of $2.98 billion in the year-ago period. Texas Instruments is trading at around $43.47 a share. Over the past 12 months, the stock has gained 33.6 percent.

Wednesday BMO:

Norfolk Southern Corp. (NYSE:NSC) is primarily engaged in the rail transportation of raw materials, intermediate products, and finished goods primarily in the Southeast, East, and Midwest and, via interchange with rail carriers, to and from the rest of the U.S. The company has a market capitalization of $27.08 billion. It is expected to report FY 2013 fourth-quarter EPS of $1.49 on revenue of $2.84 billion, compared with a profit of $1.30 a share on revenue of $2.68 billion in the year-ago period. Norfolk Southern is trading at around $87.84 a share. Over the past 12 months, the stock has gained 34.0 percent.

Abbott Laboratories (NYSE:ABT) is engaged in the discovery, development, manufacture and sale of a range of health-care products. The company has a market cap of $61.04 billion. It is expected to report FY 2013 fourth-quarter EPS of 47 cents on revenue of $5.72 billion, compared with a profit of 66 cents a share on revenue of $5.63 billion in the year-ago period. Abbott is trading at around $39.49 a share. Over the past 12 months, the stock has gained 20.8 percent.

Freeport-McMoRan Copper & Gold Inc. (NYSE:FCX) is an international mining company with a market capitalization of $38.01 billion. It is expected to report FY 2013 fourth-quarter EPS of 83 cents on revenue of $6.40 billion, compared with a profit of 78 cents a share on revenue of $4.51 billion in the year-ago period. Freeport-McMoRan Copper & Gold is trading at around $36.62 a share. Over the past 12 months, the stock has gained 6.9 percent.

Motorola Solutions Inc. (NYSE:MSI) provides mission-critical communication infrastructure, devices, software and services. The company has a market capitalization of $17.02 billion. It is expected to report FY 2013 fourth-quarter EPS of $1.38 on revenue of $2.49 billion, compared with a profit of $1.18 a share on revenue of $2.44 billion in the year-ago period. Motorola Solutions is trading at around $65.78 a share. Over the past 12 months, the stock has gained 13.5 percent.

Northern Trust Corp. (NASDAQ:NTRS) is an international financial services company with a market cap of $14.57 billion. It is expected to report FY 2013 fourth-quarter EPS of 76 cents on revenue of $1.04 billion, compared with a profit of 69 cents a share on revenue of $969.70 million in the year-ago period. Northern Trust Corp. is trading at around $60.97 a share. Over the past 12 months, the stock has gained 22.4 percent.

Textron Inc. (NYSE:TXT) is a multi-industry company engaged in aircraft, defense, industrial and finance businesses to provide customers with products and services worldwide. The company has a market cap of $35.53 billion. It is expected to report FY 2013 fourth-quarter EPS of 60 cents on revenue of $3.44 billion, compared with a profit of 51 cents a share on revenue of $3.36 billion in the year-ago period. Textron is trading at around $35.55 a share. Over the past 12 months, the stock has gained 35.2 percent.

U.S. Bancorp (NYSE:USB) is a multistate financial-services holding company. The company has a market cap of $75.38 billion. It is expected to report an FY 2013 fourth-quarter EPS of 75 cents on revenue of $4.89 billion, compared with a profit of 72 cents a share on revenue of $5.11 billion in the year-ago period. U.S. Bancorp is trading at around $41.29 a share. Over the past 12 months, the stock has gained 24.5 percent.

United Technologies Corp. (NYSE:UTX) provides high technology products and services to the building systems and aerospace industries worldwide. The company has a market capitalization of $104.76 billion. It is expected to report FY 2013 fourth-quarter EPS of $1.55 on revenue of $17.09 billion, compared with a profit of $2.26 a share on revenue of $16.44 billion in the year-ago period. United Technologies is trading at around $114.17 a share. Over the past 12 months, the stock has gained 33.4 percent.

St. Jude Medical Inc. (NYSE:STJ) develops, manufactures and distributes cardiovascular medical devices for the global cardiac rhythm management, cardiology and cardiac surgery and atrial fibrillation therapy areas, as well as neurostimulation medical devices for the management of chronic pain. The company has a market cap of $19.46 billion. It is expected to report FY 2013 fourth-quarter EPS of 91 cents on revenue of $1.38 billion, compared with a profit of 39 cents a share on revenue of $1.37 billion in the year-ago period. St. Jude Medical is trading at around $66.69 a share. Over the past 12 months, the stock has gained 73.0 percent.

Wednesday AMC:

eBay Inc. (NASDAQ:EBAY) is a global commerce platform. The company has a market cap of $69.87 billion. It is expected to report FY 2013 fourth-quarter EPS of 66 cents on revenue of $4.56 billion, compared with a profit of 57 cents a share on revenue of $3.99 billion in the year-ago period. eBay is trading at around $54.00 a share. Over the past 12 months, the stock has gained 2.1 percent.

Netflix, Inc. (NASDAQ:NFLX) is an Internet subscription service streaming television shows and movies. The company has a market capitalization of $19.63 billion. It is expected to report FY 2013 fourth-quarter EPS of 66 cents on revenue of $1.17 billion, compared with a profit of 13 cents a share on revenue of $945.24 million in the year-ago period. Netflix is trading at around $331.01 a share. Over the past 12 months, the stock has gained 239.8 percent.

SanDisk Corp. (NASDAQ:SNDK) designs, develops and manufactures data storage solutions in a range of form factors using its flash memory, controller and firmware technologies. The company has a market cap of $17.57 billion. It is expected to report an FY 2013 fourth-quarter EPS of $1.39 on revenue of $1.70 billion, compared with a profit of 87 cents a share on revenue of $1.54 billion in the year-ago period. SanDisk is trading at around $73.07 a share. Over the past 12 months, the stock has gained 55.1 percent.

Stryker Corp. (NYSE:SYK) is a medical technology company. The company has a market cap of $29.69 billion. It is expected to report an FY 2013 fourth-quarter EPS of $1.22 on revenue of $2.44 billion, compared with a profit of 71 cents a share on revenue of $2.34 billion in the year-ago period. Stryker Corporation is trading at around $78.56 a share. Over the past 12 months, the stock has gained 32.2 percent.

Western Digital Corp. (NASDAQ:WDC) is a provider of solutions for the collection, storage, management, protection and use of digital content, including audio and video. The company has a market capitalization of $21.09 billion. It is expected to report FY 2014 second-quarter EPS of $1.98 on revenue of $3.85 billion, compared with a profit of $1.36 a share on revenue of $3.82 billion in the year-ago period. Western Digital is trading at around $88.58 a share. Over the past 12 months, the stock has gained 95.3 percent.

Thursday BMO:

Baxter International Inc. (NYSE:BAX) is a global, diversified health-care company. The company has a market cap of $38.11 billion. It is expected to report FY 2013 fourth-quarter EPS of $1.26 on revenue of $4.25 billion, compared with a profit of 89 cents a share on revenue of $3.75 billion in the year-ago period. Baxter is trading at around $70.21 a share. Over the past 12 months, the stock has gained 5.6 percent.

Fifth Third Bancorp (NASDAQ:FITB) is a diversified financial-services company. The company has a market cap of $18.87 billion. It is expected to report FY 2013 fourth-quarter EPS of 42 cents on revenue of $1.52 billion, compared with a profit of 43 cents a share on revenue of $1.78 billion in the year-ago period. Fifth Third Bancorp is trading at around $21.38 a share. Over the past 12 months, the stock has gained 37.5 percent.

Johnson Controls Inc. (NYSE:JCI) manufactures, installs and services automatic temperature regulation systems for buildings. The company has a market cap of $34.59 billion. It is expected to report FY 2014 first-quarter EPS of 68 cents on revenue of $10.64 billion, compared with a profit of 52 cents a share on revenue of $10.42 billion in the year-ago period. Johnson Controls is trading at around $51.08 a share. Over the past 12 months, the stock has gained 61.8 percent.

KeyCorp (NYSE:KEY) is a bank holding company for the KeyBank National Association. The company has a market cap of $12.13 billion. It is expected to report FY 2013 fourth-quarter EPS of 24 cents on revenue of $1.03 billion, compared with a profit of 21 cents a share on revenue of $1.07 billion in the year-ago period. KeyCorp is trading at around $13.53 a share. Over the past 12 months, the stock has gained 47.9 percent.

Lockheed Martin Corp. (NYSE:LMT) is a global security and aerospace company principally engaged in the research, design, development, manufacture, integration, and sustainment of technology systems and products. The company has a market cap of $49.02 billion. It is expected to report FY 2013 fourth-quarter EPS of $2.07 on revenue of $11.33 billion, compared with a profit of $1.73 per share on revenue of $12.10 billion in the year-ago period. Lockheed Martin is trading at around $153.05 a share. Over the past 12 months, the stock has gained 63.6 percent.

McDonald's Corp. (NYSE:MCD) franchises and operates McDonald’s restaurants in the global restaurant industry. The company has a market cap of $95.93 billion. It is expected to report an FY 2013 fourth-quarter EPS of $1.39 on revenue of $7.11 billion, compared with a profit of $1.38 a share on revenue of $6.95 billion in the year-ago period. McDonald's is trading at around $95.91 a share. Over the past 12 months, the stock has gained 5.4 percent.

Union Pacific Corp. (NYSE:UNP) owns transportation companies. The company has a market cap of $77.76 billion. It is expected to report FY 2013 fourth-quarter EPS of $2.49 on revenue of $5.57 billion, compared with a profit of $2.19 a share on revenue of $5.25 billion in the year-ago period. Union Pacific Corp. is trading at around $167.58 a share. Over the past 12 months, the stock has gained 27.6 percent.

Thursday AMC:

Discover Financial Services (NYSE:DFS) is a direct banking and payment services company. The company has a market capitalization of $25.85 billion. It is expected to report FY 2013 fourth-quarter EPS of $1.19 on revenue of $2.11 billion, compared with a profit of $1.07 per share on revenue of $2.00 billion in the year-ago period. Discover Financial Services is trading at around $54.18 a share. Over the past 12 months, the stock has gained 38.5 percent.

International Game Technology (NYSE:IGT) is a global gaming company. The company has a market capitalization of $4.34 billion. It is expected to report FY 2014 first-quarter EPS of 28 cents on revenue of $554.29 million, compared with a profit of 24 cents per share on revenue of $530.30 million in the year-ago period. International Game Technology is trading at around $17.42 a share. Over the past 12 months, the stock has gained 16.3 percent.

Juniper Networks, Inc. (NYSE: JNPR) designs, develops and sells products and services that together provide its customers with network infrastructure. The company has a market capitalization of $12.99 billion. It is expected to report FY 2013 fourth-quarter EPS of 23 cents on revenue of $1.22 billion, compared with a profit of 19 cents a share on revenue of $1.14 billion in the year-ago period. Juniper Networks is trading at around $25.73 a share. Over the past 12 months, the stock has gained 22.6 percent.

Microsoft Corp. (NASDAQ:MSFT) develops, licenses and supports software products and services. The company has a market cap of $306.16 billion. It is expected to report an FY 2014 second-quarter EPS of 68 cents on revenue of $23.68 billion, compared with a profit of 76 cents a share on revenue of $21.46 billion in the year-ago period. Microsoft is trading at around $36.70 a share. Over the past 12 months, the stock has gained 35.5 percent.

Starbucks Corp. (NASDAQ:SBUX) is a roaster, marketer and retailer of specialty coffee in the world. The company has a market capitalization of $56.71 billion. It is expected to report FY 2014 first-quarter EPS of 69 cents on revenue of $4.30 billion, compared with a profit of 57 cents a share on revenue of $3.80 billion in the year-ago period. Starbucks is trading at around $75.23 a share. Over the past 12 months, the stock has gained 38.5 percent.

Friday BMO:

Bristol Myers Squibb Co. (NYSE:BMY) is a global biopharmaceutical company. The company has a market capitalization of $90.10 billion. It is expected to report FY 2013 fourth-quarter EPS of 39 cents on revenue of $4.30 billion, compared with a profit of 56 cents a share on revenue of $4.19 billion in the year-ago period. Bristol Myers Squibb is trading around $54.68 a share. Over the past 12 months, the stock has gained 59.3 percent.

First Niagara Financial Group Inc. (NASDAQ:FNFG) is a bank holding company. The company has a market cap of $3.70 billion. It is expected to report an FY 2013 fourth-quarter EPS of 20 cents on revenue of $363.46 million, compared with a profit of 15 cents a share on revenue of $344.11 million in the year-ago period. First Niagara is trading at around $10.44 a share. Over the past 12 months, the stock has gained 26.9 percent.

Honeywell International Inc. (NYSE:HON) is a diversified technology and manufacturing company. The company has a market cap of $70.64 billion. It is expected to report FY 2013 fourth-quarter EPS of $1.21 on revenue of $10.19 billion, compared with a profit of 32 cents a share on revenue of $9.58 billion in the year-ago period. Honeywell International is trading at around $90.01 a share. Over the past 12 months, the stock has gained 34.9 percent.

Kimberly Clark Corp. (NYSE:KMB) is engaged in the manufacturing and marketing of a range of products made from natural or synthetic fibers using advanced technologies in fibers, nonwovens and absorbency. The company has a market capitalization of $40.50 billion. It is expected to report FY 2013 fourth-quarter EPS of $1.37 on revenue of $5.28 billion, compared with a profit of 68 cents a share on revenue of $5.31 billion in the year-ago period. Kimberly Clark is trading at around $105.79 a share. Over the past 12 months, the stock has gained 23.6 percent.

The Procter & Gamble Co. (NYSE:PG) is focused on providing consumer packaged goods. The company has a market cap of $218.68 billion. It is expected to report FY 2014 second-quarter EPS of $1.19 a share on revenue of $22.35 billion, compared with a profit of $1.39 a share on revenue of $22.18 billion in the year-ago period. P&G is trading at around $80.44 a share. Over the past 12 months, the stock has gained 16.0 percent.

State Street Corp. (NYSE:STT) is a financial holding company. The company has a market cap of $32.35 billion. It is expected to report FY 2013 fourth-quarter EPS of $1.22 on revenue of $2.50 billion, compared with a profit of $1.00 a share on revenue of $2.46 billion in the year-ago period. State Street is trading at around $73.68 a share. Over the past 12 months, the stock has gained 47.8 percent.

Xerox Corp. (NYSE:XRX) provides a portfolio of business process and information technology outsourcing support, document technology and solutions. The company has a market capitalization of $15.33 billion. It is expected to report FY 2013 fourth-quarter EPS of 25 cents on revenue of $5.65 billion, compared with a profit of 26 cents a share on revenue of $5.92 billion in the year-ago period. Xerox is trading at around $12.45 a share. Over the past 12 months, the stock has gained 64.3 percent.

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