Earnings Season Opens: Early News and Previews

EarningsEarnings season unofficially kicks off today, but 26 companies have already reported for the second quarter of this year.
According to institutional data provider Capital IQ, here are some of the highlights so far:

  • As a whole, the S&P 500 has reported an upside EPS surprise of 5%.
  • The sectors expected to perform best include Materials (up 49.6%), Energy (up 34.4%), and Industrials (up 13.3%).
  • One of the quarter's biggest winners so far is Discovery Financial Services (DFS) up 230.3%. Another big winner is Monsanto (MON), which is up 55.6%.
  • On the losing side is Micron Technology (MU) with its negative 83.7% surprise.

Sector
Above
Match
Below
Surprise
Reported
Index
Consumer Discretionary
80%
10%
10%
8.4%
10
79
Consumer Staples
50%
17%
33%
1%
6
41
Energy
-
-
-
0%
0
41
Financials
100%
0%
0%
45.3%
1
81
Healthcare
-
-
-
0%
0
52
Industrials
0%
100%
0%
0%
1
60
Information Technology
71%
14%
14%
(23.4%)
7
75
Materials
100%
0%
0%
10.5%
1
30
Telecom
-
-
-
0%
0
8
Utilities
-
-
-
0%
0
33
S&P 500
69%
15%
15%
5%
26
500

Source: Capital IQ Consensus Estimate, a division of Standard & Poor's.

About one dozen companies are expecting to report earnings this week, according to Capital IQ Consensus Estimates. Key ones to watch:

  • Alcoa (AA) is expected to report EPS of $0.33.
  • Google (GOOG) is supposed to report EPS of $7.79.
  • JPMorgan Chase (JPM) is expected to report EPS of $1.20.

We'll bring you the latest on all of these as they report. In the meantime, investors in these stocks should read the full quarterly reports to see how each company is performing, and learn what management thinks about the current industry climate. These companies' conference-call transcripts can also add more depth to your research.

Motley Fool analyst Jordan DiPietro owns no shares of companies mentioned in this article. The Motley Fool owns shares of JPMorgan Chase and Google.





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mmcdonald2k

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Michael McDonald

July 23 2011 at 12:16 AM Report abuse rate up rate down Reply
caohellsux1978

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1 reply to kreojm's comment
savemycountry911

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July 11 2011 at 10:30 PM Report abuse -1 rate up rate down Reply
geraldlsolis

Ah, yes, EARNINGS Season... Whatever happened to REVENUES Season? You know, GROWTH. Oh, we don't want to talk about that anymore. Ugly. Earnings are more fun... and able to be manipulated to the penny. Ever wonder why companies always beat the "Street estimates" by one penny? They say, tell me what you want the Earnings Per Share to be for the Quarter, and we'll beat it by one penny. How? Simple. Accounting accruals. Earnings can be anything you want them to be. Revenues, however, are very difficult to fudge and you get in trouble if you do that. And, yes, Earnings always get better by layoffs, hiring more foreign workers on H1B Visas, cutting 401K matches, reducing employee health coverage, eliminating retiree benefits, firing "older" workers, and cutting Customer Support departments, along with others. Better "Earnings" is easy. So that's why we now celebrate "EARNINGS Season". It's fun, and safe, but, unfortunately, meaningless.

July 11 2011 at 5:31 PM Report abuse rate up rate down Reply