Earnings Preview: Baxter International, Morgan Stanley, Pepsi, Verizon

Several companies are set to report their first quarter 2013 earnings on Thursday before opening bell. The five key reports we’ll focus on here are: Baxter International Inc. (NYSE:BAX), Freeport-McMoRan Copper & Gold Inc. (NYSE:FCX), Morgan Stanley (NYSE:MS), PepsiCo, Inc. (NYSE:PEP) and Verizon Communications Inc.(NYSE:VZ).

Earnings Preview: Baxter International, Morgan Stanley, Pepsi, Verizon

Baxter International Inc. (NYSE:BAX) is expected to report between $1.03 and $1.05 earnings per share for its March quarter, compared to $1.01 earnings per share in the same quarter a year ago. Consensus for the healthcare company’s first quarter revenue is $3.5 billion, compared to $3.4 billion in the same quarter a year ago. Over the last four quarters, Baxter’s reports have been roughly in line with consensus.

The average view on shares of Baxter International Inc. (NYSE:BAX) is a strong buy, according to Zacks Investment Research. Analysts from 17 top investment firms gave their ratings on the stock, and eight of them listed it as a strong buy, four firms had the stock listed as a buy, and six listed it as hold.

Freeport-McMoRan Copper & Gold Inc. (NYSE:FCX) is expected to report 79 cents per share on $4.8 billion in revenue, according to a consensus of analysts polled by Bloomberg. The company pleasantly surprised investors during the previous quarter and also during the same quarter last year.

Of course Freeport-McMoRan Copper & Gold Inc. (NYSE:FCX) stock has been trending downward since September as gold prices have plummeted. On Monday it lost as much as 8 percent as the rate of gold sell-offs intensified.

Consensus for the Morgan Stanley (NYSE:MS) first-quarter earnings report is 56 cents per share on revenues of $8.3 billion, according to analysts polled by Bloomberg. The bank surprised investors in the last quarter, beating expectations by more than 67 percent. During the same quarter a year ago, the bank posted earnings of 71 cents per share on $8.9 billion in revenues. Morgan Stanley (NYSE:MS)’s first-quarter 2012 earnings were also much higher than expected by a consensus of Bloomberg analysts.

Investors could be expecting even more out of Morgan Stanley’s first-quarter report in the wake of strong earnings reports from some banks which have already reported: Citigroup Inc (C), which reported Monday morning, and Wells Fargo & Co. (NYSE:WFC), which reported late last week.

Bloomberg’s consensus for PepsiCo, Inc. (NYSE:PEP) indicates expectations of 70 cents earnings per share on revenues of $12.6 billion. The company beat consensus during the previous quarter and reported revenue in line with consensus for the first quarter of last year. PepsiCo, Inc. (NYSE:PEP) surprised slightly with earnings per share during the first quarter of last year.

Verizon Communications Inc. (NYSE:VZ) is expected to report earnings of 66 cents per share on $29.5 billion in revenue. Those numbers come from a consensus of 28 analysts polled by Bloomberg. That’s compared to 59 cents per share on $28.2 billion in revenue during the same quarter a year ago. Verizon beat consensus for its revenue during the previous quarter.

Last year Verizon Communications Inc. (NYSE:VZ) met consensus for three of the four quarters and beat consensus by 1 percent in the fourth quarter of 2012. In terms of earnings per share however, the company missed consensus by almost 25 percent during the fourth quarter of 2012.

 



About the Author

Michelle Jones
Michelle Jones was a television news producer for eight years. She produced the morning news programs for the NBC affiliates in Evansville, Indiana and Huntsville, Alabama and spent a short time at the CBS affiliate in Huntsville. She has experience as a writer and public relations expert for a wide variety of businesses. Michelle has been with ValueWalk since 2012 and is now our editor-in-chief. Email her at Mjones@valuewalk.com.