Will We Continue to Squeak By

By TheWild1 at 19 July, 2008, 6:51 pm, Categories : Financial Markets

Missed earnings have the ability to hurt not just one stock, but everything else that has some sort of relation to it.

Somehow we managed to squeak by last week. Perhaps it was the drop in oil and the exceeded expectations by Well Fargo, but did anybody even remember the company called Google?

The internet giant is notorious for man handling the market when bad news is associated with it, but the market managed to post in the positive.

On the other hand, if you have been following the market for the last couple of months, then none of this should really surprise you; however, what can we expect in this coming week? The following are some earning reports I think you should focus on.

Monday July 21

Bank of America - BAC

Depending on how you look at it, it could be good or bad news that one of the world’s largest and dominant bank is set to report earnings Monday morning. Thanks to Well Fargo the bank has already experienced a 30% move upward over the last week. Will it continue?

It is obvious that numbers are going to be lower than last year, but will they be lower than the analyst predictions?

Earnings per share (EPS) is estimated to come out at $0.53. Compare this to $1.28 last year. One cent below expectations or even just expressing that the economy will get worse and we might as well call the rest of the week off.

SanDisk - SNDK

While the banks were beginning to get beat last year, many were taking their capital and throwing into the tech sector.

How things have changed. Now it seems like none of them can catch a break.

EPS is suppose to come in at $0.13, as opposed to $0.30 last year. This stock has already come off significantly from its $59 52-week high they posted nearly 365 days ago.

Perhaps nobody will be expecting anything, so keep a close eye on this stock. Intel had an a positive outlook, so maybe we can expect somewhat of the same from SanDisk.

Tuesday July 22

Haliburton - HAL

Oh, Hal. How many times have I mentioned this company. I must have bought and sold this stock a million times over the last year, but it has been good to me.

EPS is expecting to come in around $0.60, which is about the same as year prior. Is that good or bad? We don’t quite know. Besides just listening to the earnings, I am more interested in hearing what the company is expecting in the future. Look to see if they have made any positive growth into their international exposure.

Their competition, Schlumberger, reported great numbers last Friday due to the higher energy prices, and the investors bought into that. Hopefully Hal is following in suit.

Wednesday July 23

EMC Corp - EMC

How far this stock has come. Last year people felt it was poised to skyrocket. In large part because of its IPO of VMWare (VMW); however, it has all seemed to come crashing down. It looks like the weaken economy has shot down the many of the goals both companies were having.

EPS is suppose to come in around $0.17 compared to the $0.16 of last year. Doesn’t seem like much growth considering all the acquisitions and developments EMC has been working on over the last year.

Like Haliburton, we are more interested in the future outlook for this company. Do they see their products/services becoming desirable over the next couple of months?

Amazon - AMZN

Unlike most of these companies, expectations for Amazon are higher than last year. EPS is planning to be at $0.26 compared to $0.19 this time last year.

Keep an eye out for what they feel is going to happen leading up to the holiday season. Is consumer spending really dead?

Thursday July 24

Bristol Meyers - BMY

The company has met his expectations quarter after quarter, and, with the market the way it is. If Bristol Meyers reaches or exceed expectations, then it could spark a really of some sort within the sector, as many people will look to make it their “safe haven.”

EPS estimated to come in at $0.40 from last year’s $0.34.

Southwest Airlines - LUV

With the high oil prices and increase cost of a flight ticket, it is pretty evident that Airlines are going to report lower numbers.

EPS is looking to come in at $0.12 from last year’s $0.25. Airlines usually all act together, so look for a domino effect either way it decides to move.

Friday July 25

T. Rowe Price - TROW

The company has increased their earnings for 20 straight quarters. According to previous quarter, investors weren’t scared of the market as T Rowe’s numbers rose.

Depending on how the week has transpired, this may or may not have any effect whatsoever, but pay attention to number of new accounts and where people are investing their money.

In the end, strong numbers should help out other financials. Look for EPS to come in around $0.60 as opposed to $0.58 last year.

***

It certainly will be an interesting week. Lets hope none of these companies ruin it for the rest.