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.
- Xilinx Inc. (NASDAQ: XLNX): $0.37 per share (+18.9%) on revenues of $482.9 million (+8.5%)
- Google Inc. (NASDAQ: GOOG): $4.79 per share (+18.4%) on revenues of $4.1 billion (+34.5%)
- Datalink Corp. (NASDAQ: DTLK): $0.11 per share (+18.2%) on revenues of $50.6 million (+10.3%)
- Intuitive Surgical Inc. (NASDAQ: ISRG): $1.27 per share (+18.1%) on revenues of $226.6 million (+44.4%)
- International Business Machines Corp. (NYSE: IBM): $2.02 per share (+16.8%) on revenues of $26.0 billion (+7.9%)
- Honeywell International Inc. (NYSE: HON): $0.95 per share (+14.7%) on revenues of $9.6 billion (+9.9%)
- Cypress Semiconductor Corp. (NYSE: CY): $0.30 per share (+13.3%) on revenues of $575.1 million (+27.9%)
- Satyam Computer Services Ltd. (NYSE: SAY): $0.34 per share (+11.8%) on revenues of $645.9 million (+26.7%)
- Linear Technology Corp. (NASDAQ: LLTC): $0.45 per share (+11.1%) on revenues of $310.4 million (+10.3%)
- Intel Corp. (NASDAQ: INTC): $0.34 per share (+8.8%) on revenues of $10.3 billion (+1.7%)
- United Technologies Corp. (NYSE: UTX): $1.32 per share (+8.3%) on revenues of $15.1 billion (+9.0%)
- eBay Inc. (NASDAQ: EBAY): $0.41 per share (same as a year ago) on revenues of $2.1 billion (+12.6%)
- Informatica Corp. (NASDAQ: INFA): $0.17 per share (-10.5%) on revenues of $112.7 million (+17.4%)
- Nokia Corp. (NYSE: NOK): $0.49 per share (-10.9%) on revenues of $18.6 billion (+5.0%)
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.
- CIT Group Inc. (NYSE: CIT): $0.20 per share (-84.5%) on revenues of $536.0 million (-33.5%)
- Marshall & Ilsley Corp. (NYSE: MI): $0.21 per share (-67.7%) on revenues of $650.0 million (-31.8%)
- Comerica Inc. (NYSE: CMA): $0.45 per share (-61.5%) on revenues of $669.2 million (-8.7%)
- Zions Bancorp. (NASDAQ: ZION): $0.62 per share (-49.2%) on revenues of $622.4 million (0.0%)
- Wilmington Trust Corp. (NYSE: WL): $0.41 per share (-38.8%) on revenues of $183.8 million (-2.7%)
- Wells Fargo & Co. (NYSE: WFC): $0.42 per share (-34.4%) on revenues of $11.0 billion (+11.5%)
- Huntington Bancshares Inc. (NASDAQ: HBAN): $0.25 per share (-34.2%) on revenues of $637.2 million (+3.7%)
- Associated Banc-Corp (NASDAQ: ASBC): $0.37 per share (-33.9%) on revenues of $258.7 million (+4.3%)
- AMB Property Corp. (NYSE: AMB) $0.68 per share (-31.3%) on revenues of $169.7 million (+2.0%)
- PNC Financial Services Group Inc. (NYSE: PNC): $1.09 per share (-20.4%) on revenues of $1.9 billion (+6.2%)
- BB&T Corp. (NYSE: BBT): $0.66 per share (-18.5%) on revenues of $1.9 billion (+13.0%)
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.
Five winners of a weak dollar: SBUX, PEP, AAPL
Twitter valuation off by half: NeXt Up Research
Comfort Zone Investing: The unmighty dollar
