The week in preview: Mulling over techs, financials


The earnings crunch begins in earnest this coming week, with companies from Johnson & Johnson (NYSE: JNJ) and PepsiCo Inc. (NYSE: PEP) to Southwest Airlines Co. (NYSE: LUV) and Harley-Davidson Inc. (NYSE: HOG) scheduled to report results for the quarter just ended. But with the ongoing turmoil in the markets, much attention is on the tech and financial sectors. This week will provide plenty to mull over on both counts.

Wall Street expectations for tech stocks are fairly optimistic. Analysts surveyed by Thomson Financial are looking for chip maker Altera Corp. (NASDAQ: ALTR) and software/service company iGate Corp. (NASDAQ: IGTE) to be the sector's biggest earnings gainers of the week. Altera is expected to report earnings of 30 cents per share (up 33.3% from a year ago) on revenue of $355.1 million. Altera had previously forecast flat sales for the quarter, and shares fell to a 52-week low last week. iGate is expected to report earnings of 14 cents per share (up 42.9%) on revenue of $55.6 million. India-based iGate recently spun off its Mastech consulting services. Shares are down 45.0% in the past three months, and also reached a new 52-week low last week.

San Jose-based Novellus Systems Inc. (NASDAQ: NVLS), on the other hand, is expected to report that net income tumbled 90.4% from a year ago to 4 cents per share, on revenue of $245.6 million. Novellus fell to a 52-week low early last week, and shares are down 44.5% year to date.

Here's a look at what analysts anticipate from other tech-related stocks scheduled to report this week.

Advanced Micro Devices Inc. (NYSE: AMD) is expected to narrow its net loss to 40 cents per share on revenue of $1.5 billion. The chip maker recently announced that it would sell off its manufacturing operations. And again, shares are trading near a 52-week low. Aladdin Knowledge Systems Ltd. (NASDAQ: ALDN) is expected to swing to a loss of 21 cents per share on revenue of $29.9 million. However, shares are 9.2% higher than they were three months ago.

Things don't look quite so encouraging when it comes to financial stocks. Last week, Bank of America Corp. (NYSE: BAC) reported earnings of 15 cents per share, much lower than the consensus estimate of 62 cents. This week, Bank of New York Mellon Corp. (NYSE: BK) is about the only financial company expected to report earnings gains. Analysts are looking for $0.72 per share, 6.9% higher than a year ago, on revenue of $3.7 billion. Also apparently headed in the right direction is Capital One Financial Corp. (NYSE: COF), as it is expected to swing to a profit of $1.01 per share, from a loss of 21 cents per share in the year-ago quarter, on sales of $4.2 billion. The Times-Picayune called Capital One Bank one of the most stable in the current crisis. And its shares are -- you guessed it -- trading near its 52-week low.

Here's what analysts are expecting from some other financials reporting this week.

Citigroup Inc. (NYSE: C) -- which bowed out of an acquisition of Wachovia Corp. (NYSE: WB) -- and JPMorgan Chase & Co. (NYSE: JPM) are expected to have swung to losses of 66 cents per share (on sales of $21.3 billion) and 13 cents per share (on sales of $16.2 billion), respectively. And in its final quarter before its acquisition by Bank of America, Merrill Lynch & Co. (NYSE: MER) is expected to have widened its net loss to $5.20 per share, on revenue of $1.3 billion. Like so many others, shares of Citigroup and Merrill hit 52-week lows last week.

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Last updated: February 10, 2012: 03:05 PM

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