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Upcoming Earnings Reports to Watch: IBM, INTC, SBUX

Ryan McQueeney

Stocks were surging in Friday morning trading, adding to the week’s solid momentum and bucking concerns about mixed results from Netflix NFLX. The rally likely has a lot to do with fresh trade optimism, but it could also be a sign that Wall Street is looking forward to a busy Q4 earnings season.

The reports got flowing this week, with big banks such as JPMorgan JPM and Bank of America BAC as well as investment giants like Goldman Sachs GS posting their latest quarterly results. In fact, we got new reports from around 40 members of the S&P 500 over the past few days, and things are only just getting started.

Total earnings for the members that have reported already are up about 18% on 8.5% higher revenues. The vast majority of these companies have surpassed EPS estimates—thanks in part to lowered expectations heading into the season.

Markets will take Monday off for MLK Day, but we’re still going to see results from 56 S&P members during the shortened week. To get ready for this, investors can use the Zacks Earnings Calendar to plan out their schedules for earnings, dividend announcements, and other important financial releases. This handy tool is your perfect one-stop-shop to properly prepare for the market events that will have an impact on your own portfolio.

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Today, we have gone one step further and selected a few of next week’s top reports to preview right now. Let’s take a closer look at a few of the earnings announcements due during the week of January 21.

1. International Business Machines Corporation (IBM)

Tech behemoth IBM is scheduled to release its latest quarterly report after the market closes on Tuesday. IBM shares have moved more than 6% higher in the past month, although the stock is still down more than 25% in the trailing year. Investors will hope the company can continue its rebound with a solid report next week.

The expectations IBM will look to outperform sit at $4.84 in earnings per share and $21.75 billion for revenue, according to our Zacks Consensus Estimates. The earnings consensus has slipped two cents in the past six cents after a pair of negative analyst revisions. Moreover, the revenue consensus represents a decline of 3.5%. IBM has struggled to consistently improve sales numbers in recent years.

 

2. Intel Corporation (INTC)

Semiconductor industry indicator Intel will post its earnings report after the closing bell on January 24. Intel has held up much better than some of its peers, which have been battered by fears of an end to the chip super cycle. INTC is actually up over the past year and has rallied roughly 13% since the market’s Christmas Eve lows.

Analysts expect Intel to post earnings of $1.22 per share and revenue of $19.01 billion. These results would represent year-over-year growth 13% and 11.5%, respectively. The earnings consensus has remained unchanged in the last 60 days. But the real key will be what Intel says about 2019. Currently, estimates have the company’s earnings growing a measly 0.3% this year.

 

3. Starbucks Corporation (SBUX)

Coffee retail giant Starbucks is also set to report after the bell on January 24. Starbucks shares are basically flat over the past month, but that includes a nice 6% bounce from December lows. The stock handled market volatility well and is up over 5% over the last 52 weeks. Still, with the mission to put a Starbucks on every corner long since passed, investors will be hungry for more growth.

Starbucks will have to surprise for that growth, at least on the bottom line. The Zacks Consensus Estimate is calling for earnings per share of $0.65, which is exactly flat from the year-ago period. This estimate has added a penny in the past 60 days. In terms of revenue, consensus estimates are calling for $6.49 billion, up nearly 7% year over year.

 

 

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