Today is another huge earnings day. Dozens of large US companies are reporting earnings. Most companies are reporting third quarter earnings. Below we highlight the forecasts for many of the noteable companies. Earnings Calendar for Wednesday, October 24, 2012, including, General Dynamics Corporation (NYSE:GD), AT&T Inc. (NYSE:T), The Boeing Company (NYSE:BA), Bristol Myers Squibb Co. (NYSE:BMY), Eli Lilly And Co. (NYSE:LLY), Kimberly Clark Corp (NYSE:KMB), Lockheed Martin Corporation (NYSE:LMT), NASDAQ OMX Group, Inc. (NASDAQ:NDAQ), T. Rowe Price Group, Inc. (NASDAQ:TROW), Northrop Grumman Corporation (NYSE:NOC), Praxair, Inc. (NYSE:PX), and Lorillard Inc. (NYSE:LO).
Before Market Open:
- General Dynamics Corporation (NYSE:GD) is an aerospace and defense company that offers a portfolio of products and services in business aviation. The FAA awarded Gulfstream a Type Certificate for its G650 aircraft on Sept 7, clearing the way for entry into service later this year. The $64.5 million plane is the leader in the large cabin long range market and could be Gulfstream’s largest revenue line by 2014. On a normalized basis, the delivery of each General Dynamics Corporation (NYSE:GD) aircraft could generate $0.03 per GD share. Jefferies’ EPS estimates remain unchanged at $7.05 and $7.70 for 2012 and 2013. Gulfstream may account for about 28% of 2012 estimated operating income of $3.8 billion and around 30% of 2013’s operating income of $4.1 billion. Selling at under 10x 2012 their estimated EPS, the shares are trading at discount to peers, despite having an attractive growth vehicle in Gulfstream. For the six months ended 01 July 2012, General Dynamics Corporation (NYSE:GD) revenues decreased 1% to $15.5B. Net income before extraordinary items decreased 7% to $1.2B. Revenues reflect Information Systems and Technology segment decrease of 12% to $4.97B, Combat Systems segment decrease of less than 1% to $4.06B. Net income also reflects Information Systems and Technology segment income decrease of 23% to $444M.
- AT&T Inc. (NYSE:T) reports earnings before the bell. BAML analysts project 5m and 7m iPhone activations at AT&T Inc. (NYSE:T) in 3Q12 and 4Q12, respectively. Verizon Communications Inc. (NYSE:VZ) 3Q iPhone activations of 3.1m fell short of their 4.2m forecast. They are looking for commentary with regard to 4Q service margin expectations and the impact on the handset upgrade rate. AT&T Inc. (NYSE:T) has increased its dividend 27 straight years and recently authorized a 420m share repurchase program. Investors are looking for insight with regard to management’s preference for returns to shareholders and accessing the capital markets. Deutsche Bank analysts expect EPS of $0.60 (cons $0.60), down 2% YoY due to the subsidy impact of an early iPhone launch, partially offset by a lower share count as a result of AT&T Inc. (NYSE:T)’s buyback program. They are focused on four issues: (1) visibility on 4Q wireless margins based on expected smartphone sales (est 17.1M YTD vs. ‘12 guidance of 25M); (2) AT&T Inc. (NYSE:T)’s outlook for ARPU growth based on shared data plan adoption; (3) visibility on wireline enterprise revenue growth; and (4) uses of cash in coming quarters, including spectrum purchases, buybacks and capex.
- The Boeing Company (NYSE:BA) is scheduled to report 3Q12 results tomorrow before the market opens with a conference call scheduled to follow at 10:30 a.m. EDT. Stifel Nicholas is looking for The Boeing Company (NYSE:BA) to report EPS of $1.03 on revenue of $20.0 billion, including $12.3 billion from commercial aircraft compared to consensus EPS of $1.12 on revenue of $20.1 billion. Their revenue forecast represents an increase of 12.8% overall and about 29.1% from commercial airplanes. Given the timing of 3Q deliveries, and depending upon deliveries near the holidays, there’s a decent chance that 4Q could be higher by one 777, three 787s, and as many as five 737s. The Boeing Company (NYSE:BA) has recorded 1,012 gross orders through October, and received 83 cancellations for a net of 929, which is now eight units ahead of the figure reached for full year 2011. Citigroup analyst, Jason Gursky, notes that the backlog and working capital are built, difficult development projects are coming to a close, and execution is in keen focus. Now it’s time to generate cash returns for shareholders, and with free cash yields likely pushing the mid-teens by mid-decade (on current prices), he views this as highly likely. He expects Board-level cash deployment decisions, continued 787 execution, and increasing investor confidence with the company’s backlog to act as catalysts.
- Bristol Myers Squibb Co. (NYSE:BMY) will report its 3Q12 earnings on Wednesday morning at 7:30 am and host an investor conference call at 10:00 am. Goldman Sachs expects 3Q2012 EPS of $0.40 vs. consensus at $0.42 and full year 2012 EPS of $1.94 vs. the Street at $1.93 and guidance of $1.90 – $2.00. They expect Bristol Myers Squibb Co. (NYSE:BMY) 3Q12 revenues of $3.9 bn just below $4.0 bn consensus, and fullyear 2012 revs of $17.9 bn also just short of consensus at $18.0 bn. In 3Q, they expect an FX headwind of -5% to ex-US revenues (-2% globally) but the main top-line story will be difficult comps in the wake of Plavix patent loss. Investors will expect an update on AMLN integration and outlook for sales ramp-up for Byetta/Bydureon with an increased Bristol Myers Squibb Co. (NYSE:BMY)/AstraZeneca plc (NYSE:AZN) sales force. For the six months ended 30 June 2012, Bristol Myers Squibb Co. (NYSE:BMY) revenues decreased 7% to $9.69B. Net income decreased 8% to $1.75B. Revenues reflect United States segment decrease of 11% to $6.04B, Europe segment decrease of 4% to $1.75B. Net income also reflects Litigation charges/(recoveries) increase from $106M (income) to $22M (expense), IPRD impairment increase from $15M to $103M (expense).
- Eli Lilly And Co. (NYSE:LLY) will report its 3Q12 earnings on Wednesday morning at 6:30 am and host an investor conference call at 9:00 am. Goldman analysts expects 3Q2012 EPS of $0.79 vs. consensus at $0.83. For full year 2012 they expect EPS of $3.36 vs. $3.39 consensus, within guidance of $3.30 – $3.40. They expect 3Q12 revenues of $5.62 bn, roughly in line with consensus, and full-year 2012 revs of $22.7 bn also in line with consensus. In 3Q, Goldman expects an FX headwind for Eli Lilly And Co. (NYSE:LLY) of -5% to ex-US revenues (-2% globally) but favorable FX impact on gross margins and operating expenses may neutralize any FX hit to the top-line and potentially even benefit EPS. The key focus will likely remain on (1) the next steps for Eli Lilly And Co. (NYSE:LLY)’s highrisk/ high-reward Alzheimer’s drug solanezumab (investors continue to expect LLY to need an additional large P3 study for filing), (2) potential patent extension for Alimta, and (3) cost cutting efforts (SG&A and R&D). For the six months ended 30 June 2012, Eli Lilly And Co. (NYSE:LLY) revenues decreased 7% to $11.2B. Net income decreased 14% to $1.93B. Revenues reflect Net product sales decrease of 8% to $10.87B. Net income also reflects Research and development increase of 4% to $2.47B (expense), Other income &, expense increase from $11.2M to $27.5M (expense), Less interest capitalized during the per decrease of 13% to $10.8M (income).
- Kimberly Clark Corp (NYSE:KMB) will report quarterly earnings before the market opens today. 3Q12 EPS: $1.33 [$1.30-1.36 range; Barclays = $1.32] 3Q12 sales growth: -0.7% [-2.2-+1.1% range; Barclays = +0.1%, +4.4% organic]. Investors will focus on any early commentary on the outlook for 2013, performance of new launches in Adult and Feminine Care, organic revenue growth & momentum in emerging markets and results in KC-Professional & outlook on the macro environment. Barclays analysts expect strong organic revenue growth, as was the case in 2Q12, +4.5% driven by +3.0% volume growth and +1.5% price/mix. Personal Care should post the strongest results among the divisions (+5.5% organic) on +4.0% volume growth and +1.5% price/mix driven by new private label contracts & strong wipes performance in