By Wallace Witkowski, MarketWatch
Disney, Comcast, Fox, CBS report earnings
Media companies will comprise the bulk of quarterly results this
week, along with reports from smaller energy companies as earnings
season begins to wind down.
Stocks finished the week lower
(http://www.marketwatch.com/story/us-stocks-investors-upbeat-ahead-of-ism-consumer-data-2015-05-01)
despite a Friday rally. For the week, the Dow Jones Industrial
Average (DJI) declined 0.3%, the S&P 500 Index (SPX) shed 0.4%,
and the Nasdaq Composite Index (RIXF) fell 1.7% after a number of
social-media stocks tanked following earnings
(http://www.marketwatch.com/story/7-charts-show-investors-antisocial-behavior-2015-05-01).
More than 80 companies on the S&P 500 will report earnings
this week with only one Dow component, Walt Disney Co.(DIS)
In addition to Disney, several other media companies report,
including Comcast Corp.(CMCSA), 21 Century Fox Inc.(NWS) (NWSA),
and CBS Corp.(CBS) Of note, investors will see if rising consumer
sentiment
(http://www.marketwatch.com/story/as-consumer-sentiment-perks-up-the-question-of-spending-looms-2015-05-01),
and a pick-up in March consumer spending
(http://www.marketwatch.com/story/consumer-spending-shows-limited-advance-in-march-2015-04-30)
translated into bottom-line gains at those companies.
With more than two-thirds of the S&P 500 having already
reported their latest results, earnings are looking to log a
year-over-year 0.4% decline for the quarter, an improvement over
what analysts had predicted in late March would be a 4.7% decline,
according to John Butters, senior earnings analyst at FactSet.
The consumer discretionary sector is on track to post 3.8%
earnings growth for the quarter, according to FactSet data,
slightly less than the 5.8% growth estimate expected at the end of
March.
Also, this week, a number of smaller energy companies add their
quarterly reports to the mix such as Anadarko Petroleum Corp.(APC)
and Marathon Oil Corp.(MPC). A 59% decline in earnings for the
energy sector has severely hobbled the S&P 500 from seeing
profit growth this quarter.
Looking past this earnings season, slightly fewer companies are
forecasting earnings to fall below the Wall Street estimate. Out of
the companies providing an outlook, 65% have guided lower than the
consensus, compared with the 69% five-year average. Still, earnings
growth is expected to be non-existent until the fourth quarter,
with analysts expecting a 3.9% decline in the second quarter and a
0.3% decline in the third quarter, Butters said.
Notable earnings reports this week
Report date Company/Ticker (FactSet EPS / Revenue estimates)
Mon., May 4 Comcast (74 cents / $17.41 billion)Cablevision Systems Corp. US:CVC (17 cents / $1.6 billion) Anadarko (loss of 64 cents / $2.41 billion)
Tues., May 5 Disney ($1.11 / $12.24 billion)DirecTV US:DTV ($1.54 / $8.16 billion)News Corp US:NWSA (US:NWS 7 cents / $2.12 billion)Discovery Communications Inc. US:DISCA US:DISCK (38 cents / $1.54 billion) Mylan NV US:MYL (71 cents / $2.05 billion)
Weds., May 6 21st Century Fox (39 cents / $6.88 billion)Tesla Motors Inc. US:TSLA (loss of 51 cents / $1.04 billion)Whole Foods Market Inc. US:WFM (43 cents / $3.71 billion)TripAdvisor Inc. US:TRIP (56 cents / $366.6 million)Keurig Green Mountain Inc. US:GMCR ($1.05 / $1.15 billion)Occidental Petroleum Corp. US:OXY (4 cents / $3.37 billion)Prudential Financial Inc. US:PRU ($2.38 / $11.07 billion)MetLife Inc. US:MET ($1.41 / $17.57 billion)
Thurs., May 7 Priceline Group Inc. US:PCLN ($7.73 / $1.8 billion)CBS Corp. US:CBS (75 cents / $3.45 billion)Marathon Oil ($3.37 / $18.44 billion)Apache Corp. US:APA (loss of 55 cents / $1.82 billion)
Fri., May 8 Tesoro Corp. US:TSO ($1.17 / $5.22 billion)
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