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| Monday, July 12, 2004 |
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Intel, IBM, Apple Among Companies to Report Earnings This Week
July 12 (Bloomberg) -- Intel Corp., International Business Machines Corp. and Apple Computer Inc. will lead the 48 companies in the Standard & Poor's 500 Index scheduled to release earnings this week.
Technology stocks dropped last week after more than a dozen software companies, including PeopleSoft Inc. and Veritas Software Corp., said sales declined in the final weeks of the period and failed to meet expectations. Shares of Yahoo! Inc. dropped 7.7 percent Thursday after its second-quarter profit was below analysts' estimates.
``The expectations the market had that we were going to be off to the races again -- perhaps not to the bubble years but nevertheless a strong recovery, strong liftoff -- is not coming to fruition,'' Gabriel Lowy, technology research director at Blaylock & Partners LP, said in an interview. ``As a result, we could see estimates coming down this year and for next.''
Profit at U.S. companies in the S&P 500 probably rose about 20 percent in the second quarter, based on the average estimates of analysts surveyed by Thomson Financial.
The S&P 500 Information Technology Index, which includes Intel, IBM and Apple, has declined 5.3 percent this year.
Lowy said investors who don't need to invest in technology stocks should avoid them during earnings seasons, and recommends that those who must invest in them stick with larger companies.
Intel, IBM, Apple
Intel, the world's largest semiconductor company, may report its highest second-quarter profit in four years on Tuesday after the market closes as demand for laptop computers improved. The company is expected to say net income rose to 27 cents a share from 14 cents a year ago, the average estimate of 32 analysts polled by Thomson.
IBM, the world's largest computer maker, is expected to report second-quarter net income of $1.12 a share, according to the average of 21 analysts surveyed by Thomson, up from 97 cents a year earlier. IBM will release results Thursday after the market closes.
Apple, the maker of Macintosh personal computers and the iPod music player, is expected to say on Wednesday that fiscal third-quarter net income rose to 15 cents a share on revenue of $1.95 billion, according to analysts polled by Thomson. Apple earned 5 cents a share a year earlier.
The following is a list of selected U.S. companies that are scheduled to release earnings results this week. Stock symbols are in parentheses after company names.
Bank of America Corp. (BAC): The third-biggest U.S. bank is likely to report a 28 percent rise in second-quarter profit because of an increase in consumer lending.
Citigroup Inc. (C): The world's largest financial-services company is expected to report its lowest quarterly profit in almost six years after setting aside almost $5 billion to pay for escalating legal costs. Citigroup is expected to report second- quarter net income of 97 cents a share, the average estimate of 15 analysts, up from 83 cents a year earlier.
Gannett Co. (GCI): The largest publisher of U.S. newspapers is scheduled to report earnings Tuesday before the market opens. Gannett is expected to say second-quarter net income rose to $1.30 a share, the average estimate of 18 analysts polled by Thomson. The company had net income of $1.20 a year earlier.
Harley-Davidson Inc. (HDI): The largest U.S. motorcycle maker is expected to report Wednesday that second-quarter earnings rose to 75 cents a share, the average estimate of 16 analysts polled by Thomson, amid demand for its cruiser models that can sell for as much as $25,000. Net income in the same period last year was 66 cents.
Johnson & Johnson (JNJ): The world's largest maker of medical devices will report on Tuesday before the market opens that second-quarter profit rose at least 10 percent, helped by sales of its Risperdal schizophrenia drug. Johnson & Johnson is expected to earn 79 cents a share, the average estimate of 18 analysts surveyed by Thomson Financial, up from 40 cents a year earlier.
Marriott International Inc. (MAR): The largest U.S. hotel company will report second-quarter earnings rose to 61 cents a share from 51 cents a year earlier, boosted by an increase in business travel. Marriott is scheduled to release earnings Thursday before the market opens.
Merrill Lynch & Co. (MER): The world's biggest securities firm by capital will likely report second-quarter net income rose to $1.09 a share, the average estimate of 19 analysts surveyed by Thomson Financial. It earned $1.05 a year earlier. Merrill, which will report Tuesday before the market opens, said it had the smallest rise in a year as customers traded fewer stocks.
Netflix Inc. (NFLX): The biggest mail-order video rental service is expected to report Thursday that second-quarter net income rose to 13 cents a share, the average estimate of nine analysts polled by Thomson. It earned 6 cents a year earlier.
PepsiCo Inc. (PEP): The world's No. 2 soft-drink maker is expected to report second-quarter net income rose to 61 cents a share, the average estimate of 18 analysts polled by Thomson, because of higher sales of new products. The company had net income of 54 cents a year earlier.
Southwest Airlines Co. (LUV): The largest low-fare carrier is expected to report Thursday that second-quarter net income fell to 16 cents a share, after government aid in the same period last year increased profit to 30 cents. Excluding the aid, Southwest earned $103 million, or 13 cents a share.
UnitedHealth Group Inc. (UNH): The biggest U.S. health insurer is expected to report that second-quarter net income rose to 92 cents a share, the average estimate of 20 analysts, from 71 cents a year earlier. The results will be announced Thursday before the market opens.
Last Updated: July 12, 2004 00:01 EDT
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| posted by Perimbean @ 10:24 PM |
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