Earnings Preview: AMD, IBM, JNJ, Verizon And Travelers

Earnings Preview: AMD, IBM, JNJ, Verizon And Travelers

Some key earnings will be reported on Tuesday. While Google Inc. (NASDAQ:GOOG) will report its earnings after the market’s close on Tuesday, Advanced Micro Devices, Inc. (NYSE:AMD), International Business Machines Corp. (NYSE:IBM),  Johnson & Johnson (NYSE:JNJ), The Travelers Companies, Inc. (NYSE:TRV) and Verizon Communications Inc. (NYSE:VZ) will also report their numbers during the day.

These companies will report before the opening bell:

 Johnson & Johnson (NYSE:JNJ): The healthcare leader has analysts’ estimates of $1.17 earnings per share on $17.67 billion revenues as compared to the previous year’s $0.08 per diluted share. This is an 8.7% projected increase.

For the year, revenue is estimated to come in at $67.32 billion.

As for earnings per share guidance (FY2012 & FY2013), the company adjusted its earnings guidance for full-year 2012 in October to $5.05 – $5.10 per share.

In the third quarter,  Johnson & Johnson (NYSE:JNJ) reported better-than-expected results thanks to strong growth from key products, new drug launches such as Zytiga (prostate cancer) and Incivek (Hepatitis C) and the Swiss medical device manufacturer Synthes acquisition in early 2012.

For the nine months ended 30 September 2012, Johnson & Johnson revenues increased 2% to $49.67B. Net income decreased 12% to $8.29B. Revenues reflect Medical Devices & Diagnostics segment increase of 4% to $20.05B, Pharmaceutical segment increase of 3% to $18.83B, Western Hemisphere Excluding U.S. segment increase of 11% to $5.27B, United States segment increase of 2% to $22.37B.

The majority of analysts have a “Buy” rating on the stock.

The Travelers Companies, Inc. (NYSE:TRV): For the fourth quarter, analysts have become more bullish and have now estimated a net income of 4 cents per share; this represents a 97.3% fall from the company’s actual earnings in the previous year. For the year, a $5.63 per share profit has been estimated, a 71.6% rise from last year.

Analysts have forecast The Travelers Companies, Inc. (NYSE:TRV)’s revenue to decline 16.2% year-over-year to $5.34 billion in the fourth quarter. For the year, revenue has been estimated at $22.37 billion.

For the nine months ended 30 September 2012, The Travelers Companies, Inc. revenues increased 1% to $19.26B. Net income applicable to common stockholders increased from $801M to $2.15B. Revenues reflect Business Insurance segment increase of 3% to $10.57B, Personal Insurance segment increase of 1% to $6.09B. Net income benefited from Personal Insurance segment income totaling $331M vs. loss of $409M.

The majority of analysts have a “Buy” rating on the stock.

Verizon Communications Inc. (NYSE:VZ): The company’s report on Tuesday will include the first full quarter (October – December), along with iPhone 5 sales.

Analysts estimate earnings at 52 cents per share on $29.8 billion in revenues for Verizon Communications Inc. (NYSE:VZ). This compares to 2011’s fourth quarter 71 cent loss (die in part to pension fund adjustments). Excluding non-operational items, the company earned 52 cents per share with revenue of $28.4 billion.

Revenue is estimated to surpass the previous year’s total of $28.44 billion by 4.5%, with a $29.71 billion figure for the quarter. For the year, revenue is projected at $115.47 billion.

For the six months ended 30 June, Verizon Wireless Inc. revenues increased 74% to $6.1B. Net income increased from $450M to $1.12B. Revenues reflect Service Revenues increase of 73% to $5.57B, Equipment increase of 75% to $526M. Net income benefited from Other, Net increase from $3M to $845M (income), Equity in Entities increase from $0K to $24M (income).

The majority of analysts have a “Hold” rating on the stock.

On Thursday, rival AT&T will report earnings.

 These companies will report after the market’s close:

Advanced Micro Devices, Inc. (NYSE:AMD): The company is facing tough times and there really doesn’t appear to be an end in sight to the problems.

Analysts  estimate a 20 cents per share fourth quarter loss, after the previous year’s 19 cents per year profit, for Advanced Micro Devices, Inc. (NYSE:AMD).

For the fiscal year, a 23 cents per share loss has been projected as well as a 32% revenue decline year-over-year to $1.15 billion for the quarter; this compares to the previous year’s $1.69 billion. For the year, revenue has a $5.42 billion estimate.

For three consecutive quarters, AMD’s revenue has declined. In the third quarter,  it dropped 24.9% year-over-year to $1.27 billion; 10.2% in the second quarter and 1.7% for the first quarter.

For the 39 weeks ended 29 September 2012, Advanced Micro Devices, Inc. revenues decreased 13% to $4.27B. Net loss totaled $710M vs. income of $668M. Revenues reflect Computation Products segment decrease of 28% to $927M, Graphics & Chipsets segment decrease of 15% to $342M, Other segment decrease from $1M to $0K. Net loss reflects Computation Products segment loss totaling $114M vs. income of $149M, Other segment loss increase of 52% to $35M.

Analysts have a “Hold” rating on the stock.

International Business Machines Corp. (NYSE:IBM): The company is expected to report that its fourth-quarter net income increased about 6.5 percent on flat revenue from both software and services sales.

Net income for International Business Machines Corp. (NYSE:IBM) is expected to come it at $5.97 billion ($5.24 per share) on $29.12 billion of revenues. Last year, IBM reported $5.59 billion in net income ($4.71 per share) on $29.48 billion in revenues.

For the year end of Dec. 31, IBM is projected to see its net income rise 10 percent to $17.47 billion ($15.13 a share), as compared to previous year’s $15.85 billion net income ($13.83 per share) . Revenue is seen falling to $104.36 billion from $106.92 billion, according to analysts’ estimates.

For the nine months ended 30 September 2012, International Business Machines Corp. revenues decreased 3% to $75.2B. Net income increased 4% to $10.77B. Revenues reflect Systems and Technology segment decrease of 10% to $11.9B, Global Business Services segment decrease of 4% to $13.85B, Europe/Middle East/Africa segment decrease of 7% to $22.69B, OEM segment decrease of 23% to $1.56B.

Sterne Agee analysts gave the stock a “Buy” rating with a $230 price target while Jefferies has a “Hold” rating with a $225 price target.


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