Earnings season starts off next week, unofficially led by Alcoa (AA) on Monday. With the slew of companies reporting starting to grow as weeks move on, we're going to have something to watch and drive the markets each day next week. The week starts with manufacturing, drifts into retail [Franklin Covey (FC), YUM! (YUM), Family Dollar Stores (FDO)] and finishes up in banking [Commerce Bancshares (CBSH), Wells Fargo (WFC).
Here's something to watch each day next week.
Monday, July 8th - Alcoa
(Full article on Alcoa's earnings here)
Alcoa will be reporting their 2nd quarter 2013 earnings next Monday, July 8th, after the bell. Alcoa is one of the smallest companies to be included in the Dow components, and its market cap is shrinking by the trading day.
It's looking like it could be a shaky unofficial start to earnings season, led by Alcoa. The analysts' consensus for earnings is $0.10/share and there's already talk of missing that number and coming in at $0.09. It's been anything but a ceremonious 2012-2013 for the aluminum company.
The company has been hit hard the past six months from both waning manufacturing overseas and a decreasing spot price of aluminum, now slightly under $0.80.
Tuesday, July 9th - Franklin Covey
Franklin Covey, a mostly ignored and thinly traded stock that's currently trading barely above its book value, reports after the bell on Tuesday. The company, which provides training, consulting, and planning products, will be reporting after the bell to analyst estimates of $0.12 EPS.
Fundamentally, the company trades extremely cheap to its forward value, and it's illiquidity makes it a great potential spread play, as thinly traded stocks are of the most likely to move a great deal on binary events.
Wednesday, July 10th - YUM! Brands
China, China, China.
Another chapter in the "How's Business in China" saga is going to come to a close for Yum! Brands on Wednesday, when the report after market close.
Analysts are expecting $0.54/share and will be focused acutely on Yum's overseas business, which accounts for roughly 40% of all sales and has been the sole driving force behind Yum's stock movement in 2013. Yum is looking to continue rebounding from its tough start to 2013, based on government reports that poultry farms being used by Yum for KFC China were using excessive levels of antibiotics in their chicken.
Thursday, July 11th - Commerce Bancshares, Inc.
Missouri-based Commerce Bancshares, Inc. is a registered bank holding company offering a diversified line of financial services, including business and personal banking, wealth management and estate planning and investments through its affiliated companies.
Commerce Bancshares operates in 360 locations across Missouri, Kansas, Illinois, Oklahoma and Colorado and also has operating subsidiaries involved in mortgage banking, credit related insurance, venture capital and real estate activities.
Kicking off earnings season for banking is Commerce Bancshares, expected to report on Thursday with analysts expecting EPS of $0.71. Commerce has had an astronomical run over the past six months, breaking its tough resistance at the $36 level and promptly making a beeline to $45.20, where it sits today.
Commerce has fares as a reliable investment, with their consistent share repurchase program and regular dividend policy. The Zacks Consensus estimate for 2013 fell by a cent after last quarter's earnings, sitting at $2.84/share.
Friday, July 12th - Wells Fargo & Company
Finally, to wrap up the week, we have Wells Fargo reporting 8 a.m. eastern on Friday morning.
Wells Fargo has been performing splendidly over the past six months, up over 20% since February of 2013. Leading into earnings, there's a generally bullish sentiment about Wells Fargo from both analysts and bloggers covering the stock (read the last 10 Seeking Alpha articles on the company).
Wells Fargo continues to be the top mortgage originator through Q1 2013, putting themselves in a position to continue to "strike while the iron's hot" should housing continue its recovery. In addition, Berkshire Hathaway added another 18 million shares of Wells Fargo in Q1, increasing their stake in the company to a massive 20%. Wells Fargo has also beefed up their dividends, offering $0.25/share in Q1.
As the housing recovery is clearly not a bubble or illusion, it's not surprise to me that the sentiment going into earnings continues to be bullish for Wells Fargo. Analysts are going to be expecting $0.92/share.