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The week in preview: More hope for techs, doubt about financials

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Wall Street's optimism in last week's preview about the earnings of tech stocks wasn't misplaced, as there were many more positive surprises than negative ones among the stocks we looked at. This week will bring plenty more data for investors in and watchers of the sector to mull over. Apple Inc. (NASDAQ: AAPL), AT&T Inc. (NYSE: T), and Microsoft Corp. (NASDAQ: MSFT), for example, are expected by analysts surveyed by Thomson Financial to post modest earnings gains from a year ago, to $1.11 per share (on $8.1 billion in sales), $0.72 per share (on $31.3 billion in sales), and $0.47 per share (on $14.8 billion in sales) respectively. All three of these companies ended the week closer to their 52-week lows than highs, and analysts on average consider them each a buy.

Here's a look at some of the week's biggest expected earnings gainers and decliners in the sector:

Also, Wall Street is looking for fiber optic network operator Level 3 Communications Inc. (NASDAQ: LVLT) to narrow its loss to $0.09 per share, on revenues of $1.1 billion, from $0.11 per share in the same period of the previous year. But analysts recommend holding LVLT.

Pessimism remains, though, for the financial sector this week. Insurers Aflac Inc. (NYSE: AFL) and Torchmark Corp. (NYSE: TMK), as well as New Jersey-based bank OceanFirst Financial Corp. (NASDAQ: OCFC), are just about the only financial companies expected to report earnings gains. Analysts are looking for $1.00 per share (+15.0%) on revenues of $4.2 million from Aflac, for $1.50 per share (+8.0%) on revenues of $873.1 million from Torchmark, and for $0.36 per share (+25.0%) on revenues of $17.9 million from OceanFirst. Again, these companies (like so many others since the markets tumbled) are closer to their 52-weeks lows than their highs. Aflac is the only one of these three with a consensus recommendation to buy.

Asset manager BlackRock Inc. (NYSE: BLK), fund manager T. Rowe Price Group Inc. (NASDAQ: TROW), and Omaha-based TD Ameritrade Holding Corp. (NASDAQ: AMTD) are among financial companies expected to post modest profit declines, to $2.06 per share (on $1.4 billion in sales), $0.56 per share (on $553.7 million in sales), and $0.30 per share (on $604.8 million in sales), respectively. Here's a look at what are expected to be some of the biggest earning decliners in this sector when they report this week.

Analysts expect online broker E*TRADE Financial Corp. (NASDAQ: ETFC), rival of the above mentioned TD Ameritrade, to have widened its loss to $0.26 per share on revenues of $149.7 million, from a loss of $0.14 per share a year ago. Not surprisingly, the consensus recommendation is to hold ETFC.

And to wrap things up, here's a look at what analysts are expecting from some other "bellwethers" scheduled to report this week:

In what might be a bit of good news for the housing sector, Pulte Homes Inc. (NYSE: PHM), one of the largest homebuilders in the U.S., is expected to lower its loss to $0.37 per share from $3.12 per share in the year-ago quarter. United Airlines parent UAL Corp. (NASDAQ: UAUA), on the other hand, is expected to have swung to a loss of $2.48 per share from a profit of $1.96 per share a year ago. However, while both of these stocks are trading nearer 52-week lows (saw that coming, didn't you?), it's UAL that gets the buy recommendation.

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Symbol Lookup
IndexesChangePrice
DJIA-223.328,280.74
NASDAQ-49.201,796.52
S&P 500-26.91896.42

Last updated: July 03, 2009: 10:54 PM

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