The earnings season is when a large number of publicly traded companies release their quarterly earnings reports. The earnings season is so far topping Street views at a pace above typical quarters.
The unofficial kickoff to the earnings season is the release of results by Alcoa (NYSE: AA), which is a major aluminum producer and Dow Jones Industrial Average component, as it is one of the first major companies to release earnings after the end of each quarter.
There is no official end to the earnings season, but it is considered to be over when most major companies have released their quarterly earnings reports, which generally occurs about six weeks after the start of the season.
The season is a very active time in the market as participants (analysts, traders and investors) review the earnings reports, which may affect their positions on or in a company.
There is extensive media coverage of the major earnings releases from a general recap of the earnings to reporting on whether the companies missed, met or beat analyst expectations.
The major companies that reported results during the past two weeks are: Alcoa Inc. (NYSE: AA), Google Inc. (NASDAQ: GOOG), JPMorgan Chase & Co. (NYSE: JPM), Citigroup Inc. (NYSE: C), International Business Machines Corp. (NYSE: IBM), Halliburton Co. (NYSE: HAL), Apple Inc. (NASDAQ: AAPL), Bank of America Corp. (NYSE: BAC), The Coca Cola Co. (NYSE: KO), The Goldman Sachs Group Inc. (NYSE: GS), Johnson & Johnson (NYSE: JNJ), Yahoo! Inc. (NASDAQ: YHOO), Abbott Laboratories (NYSE: ABT), American Express Co. (NYSE: AXP), eBay Inc. (NASDAQ: EBAY), Intel Corp. (NASDAQ: INTC), Qualcomm Inc. (NASDAQ: QCOM), BlackRock Inc. (NYSE: BLK), Advanced Micro Devices Inc. (NYSE: AMD), Nokia Corp. (NYSE: NOK), AT&T Inc. (NYSE: T), Eli Lilly & Co. (NYSE: LLY), Microsoft Corp. (NASDAQ: MSFT), Morgan Stanley (NYSE: MS), PepsiCo Inc. (NYSE: PEP), Caterpillar Inc. (NYSE: CAT), General Electric Co. (NYSE: GE), Honeywell International Inc. (NYSE: HON), McDonald's Corp. (MCD), and Verizon Communications Inc. (NYSE: VZ).
Start the slideshow to see the details:
Shares of eBay jumped more than four percent in trading Monday after an analyst gave a "strong buy" rating in a report.ReutersVerizon Communications
ReutersOn July 22, Honeywell posted a 43 percent surge in second quarter earnings helped by strong sales growth in all its segments. Revenue increased 15 percent helped by its extensive innovation pipeline and increasing presence in high growth regions.EPS = $1.02; Street estimated = $0.98Revenue = $9.09 billion; Street estimated = $9.27 billion"Honeywell's strong second quarter performance reflects terrific execution and continued momentum in our key end markets, contributing to our upside performance in the first half of 2011," Honeywell's Chairman and CEO Dave Cote said in a statement.Looking ahead into the fiscal 2011, Honeywell increased its earnings guidance to range of $3.85 to $4.00 per share from previous forecast of $3.80 to $3.95 per share. The company now expects 2011 sales of $36.1 billion to $36.7 billion, an increase of 12 percent to 14 percent over 2010, excluding CPG sales. Street predicts profit of $3.97 per share on revenue of $36.83 billion.Honeywell also said it has received all necessary regulatory approvals for the previously announced sale of CPG, which is expected to close in the third quarter."Favorable global macro trends like safety, security, energy, and globalization combined with our continued investments in new technologies, high growth regions, and our process initiatives will enable the company to continue to grow and outperform now and over the long-term," Cote said.ReutersOn July 22, GE posted a 22 percent surge in second quarter earnings helped by strong results from GE Capital, even though revenue were impacted by sharp decline in NBCU revenues following stake sale. The company said it is optimistic about growth prospects in the second half and beyond.Adjusted EPS = $0.34; Street estimated = $0.32Revenue = $35.63 billion; Street estimated = $34.72 billion"With our fifth-consecutive quarter of double-digit earnings growth, we continue to execute in a volatile environment. We posted solid overall operating earnings growth of 18 percent, with strong contributions from GE Capital, Healthcare, Transportation, Aviation, and Oil & Gas," GE Chairman and CEO Jeff Immelt said.Looking ahead, Immelt said, "We are very encouraged by second-quarter orders and earnings momentum across the company." The company said industrial earnings should improve in the second half of 2011 and the cycle is expected to accelerate in 2012.ReutersOn July 22, construction and mining equipment manufacturer Caterpillar posted lower-than-expected second quarter earnings as sales were hurt by the events in Japan.Adjusted EPS = $1.72; Street estimated = $1.79Revenue = $14.23 billion; Street estimated = $13.52 billion"Customer demand around the world continues to improve, and our sales and revenues reached an all-time record in the second quarter," Caterpillar Chairman and Chief Executive Officer Doug Oberhelman said in a statement. The company added more than 27,000 people to its global workforce since the beginning of 2010 and expects to continue hiring in 2011.Looking ahead into fiscal 2011, Caterpillar raised its earnings to a range of $6.75 to $7.25 per share from previous forecast of $6.25 to $6.75 per share. The company also lifted its sales outlook to range of $54 billion to $56 billion from previous range of $52 billion to $54 billion. The guidance exclude the impact of the acquisition of Bucyrus. Street analysts predict profit of $6.96 per share on revenue of $55.72 billion.The company said earnings, including Bucyrus, is expected to be $6.25 to $6.75 per share range and revenue, including Bucyrus, is projected in the range of $56 billion to $58 billion. The company said continued moderate economic expansion in the U.S. and stronger growth in the developing world is driving higher sales.ReutersA Pepsi logo.ReutersMorgan StanleyReutersMicrosoft China confirms the existence of ‘Lumia Phone X / Lumia X / Surface Phone’ by mistake -- via a description on a video.ReutersEli Lilly records strong third-quarter revenue but warns that arrival of generics will hit at sales of Zyprexa, Cymbalta and Evista.Eli Lilly & Co.AT&T is preparing its employees for an iPhone 5 launch, report says.ReutersFinnish phone maker Nokia's Chief Executive Stephen Elop has warned smartphone makers currently using Google's Android operating system to "watch out," suggesting that the search-giant's recent acquisition of Motorola Mobility will be bad for the market as a whole.ReutersAdvanced Micro Devices Inc. (NYSE: AMD) AMDBlackRock Inc. (NYSE: BLK)ReutersOn July 20, Qualcomm posted a 35 percent surge in third quarter earnings on robust demand for its chips that are used in smart phones and data-centric devices. The company's quarterly earnings topped Street estimates, as did revenue.Adjusted EPS = $0.73; Street estimated = $0.71Revenue = $3.62 billion; Street estimated = $3.59 billionThe company has reiterated a cash dividend of $0.215 per share payable September 23, to stockholders as of August 26.Looking ahead to the fourth quarter, Qualcomm expects adjusted earnings of $0.75 to $0.80 per share and revenue of $3.86 billion to $4.16 billion, while Street predicts profit of $0.76 per share on revenue of $3.93 billion. The company expects fourth-quarter wireless chip (Mobile Station Modem) shipments of 120 million to 125 million units.For the full year, Qualcomm raised its adjusted earnings guidance to range of $3.15 to $3.20 per share from previous forecast of $3.05 to $3.13 per share. The company also increased its revenue outlook to range of $14.7 billion to $15.0 billion from previous range of $14.1 billion to $14.7 billion. Street analysts predict profit of $3.15 per share on revenues of $14.73 billion for the full year.ReutersOn July 20, Intel posted a modest 2 percent increase in second quarter profit as higher costs and expenses offset a 21 percent growth in revenue and a lower tax rate. However, the company's quarterly earnings came in above analysts' expectations as did its revenue.Intel's results follow those of two technology giants - International Business Machines Corp. (IBM) and Apple Inc. (AAPL) - that reported strong results earlier this week.Adjusted EPS = $0.59; Street estimated = $0.51Revenue = $13.03 billion, Adjusted revenue = $13.11 billion; Street estimated = $12.82 billion"Strong corporate demand for our most advanced technology, the surge of mobile devices and Internet traffic fueling data center growth, and the rapid rise of computing in emerging markets drove record results," said Paul Otellini, Intel president and CEO.Looking forward, the company guided third quarter revenue and increased its 2011 capital spending outlook.Q3 revenue forecast = $14 billion, plus or minus $500 millionQ3 adjusted revenue forecast = $14.1 billion, plus or minus $500 million; Street view = $13.48 billion.New 2011 capital spending outlook = $10.5 billion, plus or minus $400 million.Previous 2011 capital spending outlook = $10.2 billion, plus or minus $400 million."Intel's 23 percent revenue growth in the first half and our increasing confidence in the second half of 2011 position us to grow annual revenue in the mid-20 percent range," said Otellini.ReutersWall Street forecasts Alcoa Inc. will report a lower profit of 8 cents per share for the first quarter of its fiscal year on revenue of $5.89 billion. Last year, the company's first-quarter net income was 10 cents per share on revenue of $6.01 billion.
ReutersAmerican Express ReutersAbbott Labs plans to split up into two companies.Abbott LaboratoriesOn July 19, Internet search company Yahoo reported a 11 percent growth in second quarter earnings, but revenue fell 23 percent due to the change in revenue presentation related to the search agreement with Microsoft Corp. (NASDAQ: MSFT).Adjusted EPS = $0.19; Street estimated = $0.18Revenue excluding Traffic Acquisition Cost = $1.08 billion; Street estimated = $1.11 billion"We experienced softness in display revenue in the second half of the quarter due to comprehensive changes we have made in our sales organization to position ourselves for more rapid display growth in the future," said Carol Bartz, CEO of Yahoo.Looking ahead, the company provided its revenue outlook for the third quarter, which was lower than the current Street expectations.Revenue excluding TAC = $1.05 billion to $1.10 billion; Street view = $1.12 billionYahoo Chief Financial Officer Tim Morse told Reuters in an interview the changes that Yahoo was making to its North American sales force meant that Yahoo was underequipped to meet demand. "In the second half for the quarter we didn't close out the good, branded advertising revenue like we could have and we should have and we plan," he said.By contrast Morse said that Yahoo was making progress in rectifying some of the problems in its search partnership with Microsoft, which had crimped Yahoo's revenue per search.ReutersOn July 19, drug giant Johnson & Johnson reported a better-than-expected second quarter earnings on strong international sales and positive currency impact.Adjusted EPS = $1.28; Street estimated = $1.23Revenue = $16.6 billion; Street estimated = $16.22 billion"Our recently launched pharmaceutical products continued to achieve strong growth and contributed to our solid second quarter results. We received several new product approvals across our businesses which will benefit patients around the world and drive future growth," said William Weldon, Chief Executive of Johnson & Johnson.Looking ahead into the full year 2011, the company still expects earnings of $4.90 to $5.00 per share, excluding the impact of special items, while Street predicts $4.95 per share.ReutersOn July 19, Goldman Sachs reported second quarter earnings and revenue far below Street expectations.EPS = $1.85; Street estimated = $2.27Revenue = $7.28 billion; Street estimated = $8.14 billion"During the second quarter, the operating environment was more difficult given global macro-economic concerns. In addition, certain of our businesses had disappointing results as we reduced our market risk in response to attempting to manage fluctuations in prices and market liquidity," said Lloyd Blankfein, chairman and chief executive officer of the company.Goldman Sachs declared a dividend of $0.35 per common share to be paid on September 29 to common shareholders of record on September 1.ReutersConsuming excessive soda has harmful effectsReutersBank of America
ReutersOn July 19, Apple reported a surge in its third quarter earnings on strong sales of its iPhones and iPad multimedia devices. Quarterly earnings exceeded Wall Street's expectations helped by blockbuster sales of the iPhone and strong Asian business.EPS = $7.79; Street estimates = $5.80Revenue = $28.57 billion; Street estimates = $24.92 billionThe company's iPhone sales soared 142 percent to 20.34 million units, while iPad sales jumped 183 percent to 9.25 million units. Apple's Macintosh computers sales grew 14 percent to 3.95 million units, while iPod sales fell 20 percent to 7.54 million units.Looking ahead, the company issued fourth quarter guidance.EPS forecast = $5.50; Street view = $6.42Revenue forecast = $25 billion; Street view = $27.7 billionApple Chief Executive Tim Cook told Reuters that they were particularly optimistic about Greater China, which includes mainland China, Hong Kong and Taiwan, where Apple's year-over-year revenue was up sixfold at $3.8 billion. Overall, Asia Pacific revenue more than tripled to $6.3 billion in the quarter. "I firmly believe that we are just scratching the surface right now," Cook said of China. "I think there is an incredible opportunity for Apple there."Cooks also remarked on Apple TV, one of the few Apple products that has not really connected with consumers, saying it still had a "hobby status" within the company.AppleHalliburton logoReutersOn July 18, IBM reported a 8 percent increase in its second quarter earnings on strong revenue growth in hardware, software and services. Quarterly earnings and revenue exceeded Street expectations. At the same time, the company raised its full year earnings forecast.Adjusted EPS = $3.09; Street estimates = $3.03Revenue = $26.67 billion; Street estimates = $25.35 billionInvestors had feared that technology sales would slow in the second half, hurt by the economic uncertainty in Europe and Japan, as well as a drop in government spending. But IBM offset those challenges with strong growth in developing markets from Brazil to China, and robust sales of a new line of mainframe computers, according to Reuters.Looking ahead, the company raised its fiscal 2011 earnings and operating earnings guidance.New EPS forecast = $12.87; Previous forecast = $12.73New operating EPS forecast = $13.25; Prevous forecast = $13.15Street view = $13.22In its 2015 roadmap, the company aims to take emerging growth countries to about 30 percent and software to 50 percent. IBM also has plans to make $20 billion worth of acquisitions between now and 2015.ReutersCitigroupReutersOn July 14, financial services giant JPMorgan reported a higher-than-expected second quarter earnings as it wrote off fewer bad mortgages and credit card loans. The company made new loans faster than customers paid off existing ones during the quarter, a reversal from the first quarter and a good sign for a business long plagued by weak loan demand, according to Reuters.EPS = $1.27; Street estimates = $1.21Revenue = $27 billion; Street estimates = $25.13 billionJPMorgan has been hiring people to work out its problems with mortgages, still the biggest drag on its business. The bank told Reuters that it hired 10,000 people in the second quarter. It has 250,095 people as of the end of June.Looking ahead, Jamie Dimon, Chairman and Chief Executive of JPMorgan, said, "We continue to see substantial opportunities for the company. We are building our international presence, with more bankers, branches and products. In the U.S., we are also investing in new branches and adding bankers and salespeople, expanding the reach of our consumer and wholesale businesses."ReutersOn July 14, Internet search engine Google reported a surge in second quarter earnings as it continued to draw more revenue from advertising. Both earnings and revenue excluding Traffic Acquisition Cost (TAC) came in well ahead of the Street expectations.The company's search advertising business, combined with new efforts like display and mobile advertising, boosted its revenue by 36 percent in its first three months under the helm of new Chief Executive Larry Page.Adjusted EPS = $8.74; Street view = $7.86Revenue excluding TAC = $6.92 billion; Street view $6.55 billionGoogle added about 2,450 new employees in the second quarter, bringing its total headcount to 28,768 employees as of the end of June 30. Over 135 million Android smartphones or tablets -- made by the likes of Motorola and Samsung Electronics -- had been activated in total, Google executives told Reuters. And its Chrome browser is now employed by more than 160 million users.Reuters
