- More than a third of the Dow Jones Industrials are on deck to report quarterly results this week.
- Wall Street expectations are particularly high for leading tech and financial giants.
- Only a few of these companies are expected to post shrinking earnings.
The third-quarter earnings reporting season is in full swing, and most of the Dow Jones Industrial Average components are expected to share their latest results over the next two weeks. This week alone brings us reports for 11 of the 30 Dow members, and the Wall Street expectations are highest for Goldman Sachs Group Inc GS, Intel Corporation INTC and UnitedHealth Group Inc UNH.
The consensus analysts' forecasts call for double-digit growth in earnings and solid revenue results from all three. Some of Goldman's peers have already posted better-than-expected results, and Intel raised its revenue guidance during the quarter. But note that UnitedHealth recently was accused of price gouging on prescription drugs.
Below is a quick look at what is expected from these three reports, as well as a peek at a few other Dow components that also are on tap to share their quarterly results this week.
Goldman Sachs
The third-quarter profit of this New York-based financial giant is anticipated to have risen more than 23 percent from a year ago to $3.79 per share, according to Wall Street analysts. The consensus of 79 Estimize respondents has earnings coming in at $3.93 per share. Note that both Wall Street and Estimize underestimated earnings in the previous quarter.
In Tuesday morning's report, analysts are looking for $7.42 billion in revenue for the three months that ended in September, a little less than the $7.60 billion that Estimize predicts. Either forecast is more than 8 percent higher than the revenue reported a year ago, but also less than the $7.93 million reported for the second quarter.
See also: False Hope: The Street Believed Twitter & Salesforce Rumors For Too Long
Intel
In its report after Tuesday's closing bell, this leading semiconductor maker is expected to say that it had EPS of $0.73 in its third quarter, according to Estimize. That would be up from a profit of $0.64 per share a year ago. The Wall Street consensus estimate is $0.72 per share, though the analysts, like Estimize, have underestimated EPS in the past few quarters.
Estimize narrowly overestimated revenue in the previous quarter, and this time the 193 respondents are looking for $15.56 billion. The Wall Street estimate is essentially the same, and both forecasts are a little less than the midpoint of Intel's guidance range. In the same period of last year, the company reported $14.46 billion in revenue.
UnitedHealth
The consensus Wall Street forecast calls for this Minnesota-based health plan provider to post third-quarter EPS of $2.08 (up $0.31 from in the same period of last year) and for revenue to have risen around 11 percent to $46.09 billion in the period. Note that UnitedHealth topped expectations on both the top and bottom lines back in the second quarter.
Estimize is a bit more optimistic, with the consensus of 15 respondents pegging EPS at $2.10, and revenue of $46.19 billion is expected for the three months that ended in September. Estimize also underestimated the results back in the second quarter. UnitedHealth is scheduled to share its latest results before Tuesday's trading session begins.
And Others
Also this week, the consensus forecasts call for per-share earnings at Dow members General Electric, Johnson & Johnson, McDonald's and Microsoft to be higher than a year ago. Note that McDonald's is the only one that analysts predict will also have declining revenues.
On the other hand, the consensus forecasts call for EPS at American Express, IBM, Travelers and Verizon to be smaller than a year ago.
The following week, look for reports from Apple, Boeing, Caterpillar, Chevron, Coca-Cola, DuPont, Exxon Mobil, Merck, Procter & Gamble, 3M, United Technologies and Visa, as well as many others not included in the Dow Jones Industrial Average.
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