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The Zacks Analyst Blog Highlights: Coca-Cola, Caterpillar, 3M, Boeing and Intel

Zacks Equity Research
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For Immediate Release

Chicago, IL – April 29, 2019 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Coca-Cola Co. KO, Caterpillar Inc. CAT, 3M Company MMM, Boeing Company BA and Intel Corporation INTC.

Here are highlights from Friday’s Analyst Blog:

Dow 30 Stock Roundup: KO, CAT, MMM & More

 The index suffered heavy losses in a week marked by mixed earnings numbers. The week started on a low key after China indicated that it would suspend stimulus measures and undertake structural reforms.

Strong first-quarter earnings numbers buoyed the index on Tuesday. However, disappointing results from key index components led to losses over the next two trading sessions.

Last Week’s Performance          

The index lost 0.2% on Monday as the positive impact of a surge in oil prices was partially negated by news that China may end economic stimulus and opt for structural reforms. Moreover, investors preferred to remain largely on the sidelines at the start of the busiest week of the first-quarter earnings season.

The index increased 0.6% on Tuesday buoyed by strong first-quarter 2019 earnings results. The Dow also remained at a striking distance from an all-time peak. Shares of The Coca-Cola Co. gained 1.7% after beating earnings and revenue estimates. Meanwhile, new home sales increased 4.5% in March to a seasonally adjusted annual rate of 692,000.

The index declined 0.2% on Wednesday following mixed financial results for the first quarter of 2019. Despite strong results, shares of Caterpillar Inc. plunged 3.1% owing to a 4% drop in construction revenues in Asia Pacific region, especially in China. Management warned of a possible slowdown in its China business.

The index lost 0.5% on Thursday, shedding more than 100 points after shares of 3M Company plummeted nearly 13% after missing earnings expectations. This was its worst performance since Oct 19, 1987, better known as Black Monday.

Sales also declined year-over-year. Meanwhile, the company also reduced its full-year outlook and revealed it was planning to lay off 2,000 employees worldwide.

Components Moving the Index

The Boeing Company reported adjusted earnings of $3.16 per share in first-quarter 2019, which outshined the Zacks Consensus Estimate of $3.11 by 1.6%. The bottom line, however, reflected a decline of 13% from $3.64 registered in the year-ago quarter. Boeing has a Zacks Rank #3 (Hold).

In the quarter under review, the company's revenues amounted to $22.92 billion, which exceeded the Zacks Consensus Estimate of $22.26 billion by 3%. However, the top line dropped 2% from the year-ago quarter’s figure of $23.38 billion. This decline was on account of lower 737 deliveries. (Read: Boeing Q1 Earnings Top, Down Y/Y on Lower 737 Deliveries)

Caterpillar delivered adjusted earnings per share of $2.94 in first-quarter 2019, surpassing the Zacks Consensus Estimate of $2.84. The figure improved 4% year over year driven by robust top-line performance despite higher manufacturing costs.

Revenues improved 5% year over year to $13.5 billion in the quarter under review, outpacing the Zacks Consensus Estimate of $13.4 billion. Sales increased 9%, 8% and 7% in Asia Pacific, Latin America and North America, respectively.

For 2019, Zacks Rank #3 Caterpillar expects earnings per share to range between $12.06 and $13.06, up from the prior range of $11.75 to $12.75. (Read: Caterpillar Tops Q1 Earnings Estimates, Hikes '19 View)

Intel Corporation came out with quarterly earnings of 89 cents per share, surpassing the Zacks Consensus Estimate and year-ago earnings of 87 cents per share each. These figures are adjusted for non-recurring items.

Zacks Rank #3 Intel posted revenues of $16.06 billion for the quarter ended March 2019, surpassing the Zacks Consensus Estimate by 0.30%. This compares to year-ago revenues of $16.07 billion. (Read: Intel Q1 Earnings and Revenues Beat Estimates)

Coca-Cola’s first-quarter 2019 comparable earnings of 48 cents per share beat the Zacks Consensus Estimate of 46 cents. The bottom line also improved 2% from the year-ago period, driven by ongoing productivity efforts and disciplined growth strategies.

Revenues of $8,020 million surpassed the Zacks Consensus Estimate of $7,890 million and increased 5% year over year. For 2019, the company continues to estimate organic revenue growth of nearly 4%. (Read: Coca-Cola Stock Rises on Q1 Earnings and Sales Beat)

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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 https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.


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