It is another big earnings day again! Several Dow components plus many other large companies companies are reporting earnings today. Some companies will be reporting earnings before the market opens, other companies will report after the closing bell. We will be post-analysis on some of the more important names. Below is a brief earnings preview for the key companies reporting today, which includes, BlackRock, Inc. (NYSE:BLK), Bank of America Corp (NYSE:BAC), American Express Company (NYSE:AXP), PepsiCo, Inc. (NYSE:PEP), Bank of New York Mellon (NYSE:BK), Abbott Laboratories (NYSE:ABT), U.S. Bancorp (NYSE:USB), Quest Diagnostics Inc (NYSE:DGX), Halliburton Company (NYSE:HAL), eBay Inc (NASDAQ:EBAY), Northern Trust Corporation (NASDAQ:NTRS), and Noble Corporation (NYSE:NE).
BlackRock, Inc. (NYSE:BLK) is the largest asset manager in the world. Analysts will be looking at fund flows, and yesterday’s announcement of cutting fees on BlackRock, Inc. (NYSE:BLK)’s ishares ETFs. Consensus estimates call for 3.65 EPS and revenue of 2.459.16 billion for Q3. For the six months ended 30 June 2012, BlackRock, Inc. (NYSE:BLK) revenues decreased 3% to $4.48B. Net income decreased 5% to $1.13B. Revenues reflect Europe segment decrease of 7% to $1.16B, Asia segment decrease of 18% to $216M. Net income also reflects Interest expense increase of 28% to $101M (expense), Net Gain on Investments decrease of 12% to $68M (income). Dividend per share increased from $2.75 to $3.00.
Bank of America Corp (NYSE:BAC) is the second to last big bank to report earnings. Results from the other big banks, Wells Fargo & Company (NYSE:WFC), JPMorgan Chase & Co. (NYSE:JPM), and Citigroup Inc. (NYSE:C), were overall positive. Consensus estimates for Q3 is $(0.07) EPS on revenue of 21.893.34 billion. Investors will be keeping a close eye on net interest margins in the current low interest rate enviroment and legal charges related to Bank of America Corp (NYSE:BAC)’s 2008 acquisition of Merrill Lynch. For the six months ended 30 June 2012, Bank of America Corp (NYSE:BAC) interest income decreased 16% to $29.45B. Net interest income after loan loss provision decreased 1% to $16.2B. Net income applicable to common stockholders totaled $2.42B vs. loss of $7.39B. Net interest income after loan loss provision reflects Consumer & Business Banking segment decrease of 23% to $7.78B, Global Banking segment decrease of 11% to $4.93B.
American Express Company (NYSE:AXP) will be reporting earnings after the market close. With roughly 85% of American Express Company (NYSE:AXP)’s revenues tied to system spending volumes, investors will be searching for signs of slowing US and International billed business growth rates. Analysts forecast American Express Company (NYSE:AXP) to report revenue of $7.929.91 billion and EPS of $1.09 for Q3. For the six months ended 30 June 2012, American Express Company (NYSE:AXP) revenues increased 6% to $16.7B. Net income before extraordinary items increased 5% to $2.6B. Revenues reflect Global Network & Merchant Services segment increase of 8% to $2.45B, Global Commercial Services segment increase of 3% to $2.5B. Net income was partially offset by Provision for Losses / Card-member Loans increase from $56M to $489M (expense).
PepsiCo, Inc. (NYSE:PEP)‘s main competitor in the beverage industry, The Coca-Cola Company (NYSE:KO), reported earnings yesterday. Investors will be looking for commodity cost inflation, and PepsiCo, Inc. (NYSE:PEP)’s expectations for $1.1 billion of productivity savings. Consensus estimates are Q3 EPS of $1.16 and revenue of $16.901.90 billion. For the 24 weeks ended 16 June 2012, PepsiCo, Inc. (NYSE:PEP) revenues increased less than 1% to $28.89B. Net income applicable to common stockholders decreased 14% to $2.61B. Revenues reflect Latin America Foods segment increase of 9% to $3.18B, Frito-Lay – North America segment increase of 3% to $6.2B, United Kingdom & Europe segment increase of 1% to $5.46B, also reflect PepsiCo, Inc. (NYSE:PEP) Beverages North America segment decrease of 4% to $9.8B.
Bank of New York Mellon (NYSE:BK) will be reporting earnings on Wednesday. Analysts will be looking at asset growth and net interest margins for the company. Analysts predict that Bank of New York Mellon (NYSE:BK) will report Q3 EPS of $0.54 and revenue of 3.595.78 billion. For the six months ended 30 June 2012, Bank of New York Mellon (NYSE:BK) interest income increased 3% to $1.79B. Net interest income after loan loss provision increased 6% to $1.51B. Net income decreased 20% to $1.09B. Net interest income after loan loss provision reflects Others segment increase from $60M to $159M, Investment Management segment increase of 8% to $107M. Net income was offset by Investment income decrease of 22%.
Abbott Laboratories (NYSE:ABT) will report its 3Q2012 earnings on Wednesday morning at approximately 7:45 a.m. Analysts expect Abbott Laboratories (NYSE:ABT) to earn $1.28 per share and report revenue of $10.14 bn. Investors will be looking for clarity on the status of the Hepatitis C pipeline, and Humira, Abbott Laboratories (NYSE:ABT)’s key drug. For the six months ended 30 June 2012, Abbott Laboratories revenues increased 3% to $19.26B. Net income increased 6% to $2.97B. Revenues reflect Proprietary Pharmaceutical Products segment increase of 6% to $8.45B, Nutritionals Products segment increase of 8% to $3.15B, Diagnostics Products segment increase of 5% to $2.12B, United States segment increase of 6% to $7.9B, International Sales segment increase of 1% to $11.36B.
U.S. Bancorp (NYSE:USB) is reporting Q3 earnings on Wednesday. Investors will be paying to close attention to net interest margins. Analysts predict U.S. Bancorp (NYSE:USB) to earn $0.19 per share on revenue of $5.140.79 billion. For the six months ended 30 June 2012, U.S. Bancorp (NYSE:USB) interest income increased 4% to $6.46B. Net interest income after loan loss provision increased 20% to $4.34B. Net income applicable to common stockholders increased 21% to $2.63B. Net interest income after loan loss provision reflects Consumer Banking segment increase of 23% to $1.83B, Wholesale Banking segment increase of 40% to $1.05B. Net income benefited from Consumer Banking segment income.
Quest Diagnostics Inc (NYSE:DGX) recently announced a major management restructuring focused on driving operational improvement and growth, analysts believe the company’s new CEO is making some interesting changes, in addition to bringing in some new senior management talent. Additionally, investors are looking for any announcement about share repurchases or a dividend. Consensus estimates is for Quest Diagnostics Inc (NYSE:DGX) to report EPS of $0.16 on revenue of 1.908.79 billion. For the six months ended 30 June 2012, Quest Diagnostics Inc (NYSE:DGX) revenues increased 3% to $3.84B. Net income before extraordinary items increased from $110.2M to $336.6M. Revenues reflect Clinical Laboratory Testing Business segment increase of 3% to $3.51B, Other Operating Segments increase of less than 1% to $336.2M. Net income benefited from General Corporate Expenses segment loss decrease of 65% to $124M.
Halliburton Company (NYSE:HAL): Spot market pricing pressure for frac persists, which should create a headwind from contract rollover in 2H12. For the six months ended 30 June 2012, Halliburton Company (NYSE:HAL) is one of the largest Oil Well Services & Equipment. Analysts forecast Halliburton Company (NYSE:HAL) to report $0.67 EPS in Q3 on revenue of $7.143.58 billion. Halliburton Company (NYSE:HAL) revenues increased 26% to $14.1B. Net income before extraordinary items increased 10% to $1.38B. Revenues reflect Completion and Production segment increase of 29% to $8.75B, Drilling and Evaluation segment increase of 21% to $5.35B, North America segment increase of 29% to $8.31B, Latin America segment increase of 28% to $1.66B, Middle East/Asia segment increase of 22% to $1.97B.
eBay Inc (NASDAQ:EBAY) is reporting third quarter earnings on Wednesday. Investors will want guidance on PayPal recent partnership with Discover Financial Services (NYSE:DFS), which enables customers to use PayPal cards on DFS rails in 1H13. The consensus among analysts is EPS of $0.54 and revenue of 3.405.77 billion for Q3. For the six months ended 30 June 2012, eBay Inc (NASDAQ:EBAY)’s revenues increased 26% to $6.68B. Net income increased 66% to $1.26B. Revenues reflect an increase in sales from marketplaces and payments segments. Net income was benefited from an increase in Gross profit margin, rise in Income from Operations, Increased interest & other Net and gain on divested business vs., a loss and an increase in operating profit.
Northern Trust Corporation (NASDAQ:NTRS) is reporting earnings before the market opens today. Investors are looking for updates on its profitability improvement initiative (targets an annual pre-tax income improvement of approximately $250mn by the end of 2013 with more than 50% expected to be realized by year-end), the health of its new business pipeline, and some directional net interest income guidance. Analysts expect Northern Trust Corporation (NASDAQ:NTRS) to report Q3 revenue of $988.47 million and EPS of $0.74. For the six months ended 30 June 2012, Northern Trust Corporation (NASDAQ:NTRS)’s interest income decreased 12% to $622.5M. Net interest income after loan loss provision increased 10% to $500.5M. Net income applicable to Common increased 12% to $340.8M. Net interest income reflects a decrease in interest expense. Net income reflects an increased income from trust, investment & other service fees and higher security commissions & trading income.
Noble Corporation (NYSE:NE) is set to kick off earnings season for the offshore drillers on Wednesday. Over the past 3 years, Noble Corporation (NYSE:NE) has attempted to revamp itself through the strategic acquisition of Frontier Drilling and fleet reinvestment, without a meaningful positive effect on the stock, and Atrong catalyst could be a “MLP” spinoff. Analysts expect Noble Corporation (NYSE:NE) to report Q3 EPS of $0.13 on revenue of $900.94 million. For the six months ended 30 June 2012, Noble Corporation (NYSE:NE) revenues increased 41% to $1.7B. Net income increased from $108.6M to $280M. Revenues reflect Contract Drilling Services segment increase of 41% to $1.66B, Other segment increase of 26% to $37M. Net income benefited from Contract Drilling Services segment income increase from $162M to $386.4M. Dividend per share decreased from $0.29 to $0.28.
Disclosure: Long AXP and USB, no other positions in any securities.
