For Immediate Release
Chicago, IL – July 18, 2014 – Zacks.com releases the list of companies likely to issue earnings surprises. This week’s list includes Apple (AAPL-Free Report), Facebook (FB-Free Report), Coke (KO-Free Report), Ford (F-Free Report) and Verizon (VZ-Free Report).
To see more earnings analysis, visit http://at.zacks.com/?id=3207.
Every day, Zacks.com makes their Bull Stock of the Day available, free of charge. To see it, click here.
Is the Earnings Improvement for Real?
The Finance sector gave us a good start to the 2014 Q2 earnings season. It isn’t ‘good’ in terms of growth – there is not much of that for the big banks and brokers. There weren’t many surprises on the net interest margins, trading volumes, and mortgage business fronts – they have been weak for a while and we saw more of that in Q2 as well. What came as a pleasant surprise were signs of modest improvement in lending and investment banking.
These improvements coupled with tight cost controls resulted in better-than-expected results for the Finance sector. The 42% of the sector’s market capitalization that have reported Q2 results are overwhelming coming out with positive surprises.
With results from the big banks and brokers now behind us, attention in the sector will shift to the insurance industry which will start reporting this week. Overall, total earnings for the Finance sector companies that have reported are essentially flat (up only +0.2%) on modestly lower revenues (down -0.6%).
The composite (or blended) Q2 picture for the sector, combining the actual results for the 17 companies that have reported with estimates for the still-to-report 63 companies, is for earnings growth of +2.9%. This is better than pre-season estimates and the sector’s Q1 performance when earnings were down -7.1% from the same period last year. Hopes remain high that the sector will resume its growth trajectory in the coming quarters.
These growth projections reflect aggressive estimates for the sector, but the strong results thus far in Q2 has likely increased confidence in these estimates.
Earnings Calendar (week of July 21)
Next week’s reporting calendar (the week of July 21) takes us into the heart of the Q2 earnings season this week with almost 600 companies reporting results, including 141 S&P 500 members. This week’s line-up of reports spans the entire breadth of the U.S. economy – from Apple (AAPL-Free Report) and Facebook (FB-Free Report) to Coke (KO-Free Report), Ford (F-Free Report), Verizon (VZ-Free Report) and a lot more in the middle.
With a little over a tenth of the Q2 results already in, we can say that the reporting season is off to a good start. By the end of next week, we will know definitively how good this earnings season has been.
Zacks "Profit from the Pros" e-mail newsletter offers continuous coverage of the industries and the stocks poised to outperform the market. Click to subscribe to this free newsletter today.
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros.
Get the full Report on AAPL - FREE
Get the full Report on FB - FREE
Get the full Report on KO - FREE
Get the full Report on F - FREE
Get the full Report on VZ - FREE
Follow us on Twitter: https://twitter.com/zacksresearch
Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Zacks Investment Research
800-767-3771 ext. 9339
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
For Immediate Release