Earnings Preview: BHP, Novartis, SAP, Siemens, Unilever

Earnings Preview: BHP, Novartis, SAP, Siemens, Unilever

This week is going to be a big one for earnings releases, in New York and across the ocean in Europe. Here’s our run through of the most important European earnings releases expected on Wednesday.

Earnings Preview: BHP, Novartis, SAP, Siemens, Unilever

BHP Billiton Limited (NYSE:BHP): The $120 billion natural resources company is not announcing earnings this week, but it is revealing number that are almost as important to investors familiar with the natural resources market. The company’s fourth quarter Production and Exploration & Development reports will be released after the markets close on Wednesday.

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A Morgan Stanley (NYSE:MS) report, commenting on the upcoming release, expects that the company will announce oil production equivalent to 59.92 million barrels, 43 mega tonnes of Iron and 305 kilo tonnes of Copper. BHP Billiton Limited (NYSE:BHP) has been making strides to reduce its costs and change the structure of its capital expenditure, with the goal of making it one of the more flexible and exciting companies in the industry.

The important indicators to look for in Wednesday’s report are any changes in plans for capital expenditure and costs, outlook on demand, particularly from China, and any update on guidance for Full Year 2013 earnings. BHP Billiton Limited (NYSE:BHP) stock has remained flat for the last twelve months and is down slightly since the first weeks of 2013. The firm’s stock currently stands at $77.38.

Novartis AG (NYSE:NVS) (VTX:NOVN): The pharmaceuticals giant will announce its total 2012 earnings on Wednesday before the market opens. Novartis AG (NYSE:NVS) (VTX:NOVN) is expected to announce earnings of $1.26 per share for the final three months of 2012, totaling $5.24 per share for the entirety of 2012.

The company’s revenue for the quarter are expected to come in at $14.5 billion, bring the total for last year to $56.5 billion. In the fourth quarter of 2011, the company announced earnings of $1.23 per share, on revenues of $14.8 billion. The full year of 2011 brought shareholders earnings of $5.57 per share, on revenue of $58.6 billion.

The most important things to look for in the report, and the subsequent conference call, are the firm’s sales forecasts , particularly of new products, and those facing competition from generics. The firm’s EBIT margin will be another important indicator. Novartis AG (NYSE:NVS) (VTX:NOVN) shares have risen by more than 17% in the last twelve months, and more than 2% since the start of the new year.

SAP AG (NYSE:SAP) (ETR:SAP) (FRA:SAP): One of the most important companies in the software and services sector, SAP AG (NYSE:SAP) (ETR:SAP) (FRA:SAP) will announce fourth quarter earnings on Wednesday. The firm’s share price fell last week after a lower than expected pre-release on January 15.

Analysts expect the company to announce earnings of $41.53 per share for the quarter on revenues of $5.1 billion. The firm earned $1.40 in the same quarter last year on revenues of $5.1 billion. If the firm hits analysts’ targets, it will record total 2012 earnings per share of $3.89, and full year revenue of $5.1 billion.

2011 earnings came to $3.67 per share. on revenue of $14.2 billion. SAP AG (NYSE:SAP) (ETR:SAP) (FRA:SAP) specializes in enterprise software solutions. The company’s licensing fees face headwinds in the fourth quarter of 2012. The firm has an exciting 2013 ahead of it as more firms enter the enterprise software sector, and service shifts to a cloud based environment.

Siemens AG (NYSE:SI) (FRA:SIE) (ETR:SIE): The German industrial conglomerate Siemens AG (NYSE:SI) (FRA:SIE) (ETR:SIE) will release its earnings early Wednesday morning. The firm is expected to record, for the quarter, earnings per share of €2.37 for the first fiscal quarter of 2013. Revenues are expected to come in at €18.2 billion.

Earnings for the first quarter of 2011 were €2.26 per share on revenues of €17.9 billion. The company’s stock price has been trending upward in the last twelve months, increasing by close to 15%. For the first few weeks of 2013, shares  have risen by close to 2%.

The firm’s 2013 is looking unpredictable, with European instability weighing heavily on the firm’s bottom line. The best estimates from analysts suggest that the company’s earnings are likely to stay pretty level, along with revenue for the full year 2013.

Unilever N.V. (NYSE:UN): Before the market opens on Wednesday, Unilever N.V. (NYSE:UN) will release its earnings for 2012. The company is expected to record earnings per share of €2.12 on revenue of €51.3 billion.

In 2011 the firm earned €2.08 per share on revenue of €46.5 billion. The company, relying on consumer demand in a depressed Europe, is not expected to boom through 2013. However they are expected to keep their bottom line stable. Analysts expect organic growth of 3-4% in earnings and revenue in the coming year.

The firm’s stock had a good 2012, as its share price increased by more than 18% for the full year. The opening weeks of 2013 have been reasonably good for investors in Unilever N.V. (NYSE:UN). The share price has risen by more than 1% since the year began.

The most important indicator in the earnings report for the firm’s future will be signs of trends in emerging markets. If growth slows, or quickens in those markets, Unilever N.V. (NYSE:UN) will see its share price move accordingly.


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