Preview Of Friday's Q4 Earnings
The wave of companies reporting Q4 results will continue right on through Friday. Several widely held stocks will be announcing earnings on the final trading day of the week. Here is what investors can expect as this week wraps up.
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Energy Stocks Seeking a Spark
Friday morning the oil and gas giant, Chevron (NYSE: CVX), will check in with its Q4 earnings. Analysts are expecting the company to report a 20% drop in EPS on a 10.5% slide in revenue. Shares of CVX have significantly underperformed the market over the past 52 weeks, but the stock does carry a dividend yield of 3.6%.
A couple of weeks ago, Chevron said that its upstream business has been benefiting from higher commodity prices and that earnings from this segment should be in line with its Q3 results. The company did however note that it expects its downstream business to suffer as refining margins have been pinched. Net production is expected to be up on a sequential and year-over-year basis in Q4.
Another energy company set to report on Friday is St. Louis-based Arch Coal (NYSE: ACI). The consensus is that EPS will be down 61.4% on flat sales when compared to the company's year-ago quarter. Shares of ACI have rallied 55.7% from a year ago as the coal industry has begun to regain its stability.
Flying Higher
The aerospace products company Honeywell (NYSE: HON) will also report its quarterly results on Friday. At this point, analysts are calling for the company to announce a 7.2% decrease in EPS on a 6.5% decline in revenue. Shares of HON have gained 20% over the past 52 weeks.
In its most recent quarter, Honeywell's aerospace segment battled lower volumes in commercial aerospace, but margins improved as the result of cost saving initiatives. The company did win a major contract with the U.K.'s Ministry of Defense to retrofit its fleet of Chinook helicopters. Honeywell also experienced a major improvement in its free cash flow on a year-over-year basis.
Strong Surge
Shares of Mattel (NYSE: MAT) are up 30% since one year ago and have nearly doubled since their 52-week low in March. The toy manufacturer will be releasing its Q4 earnings before the market open on Friday. Wall Street is expecting the company to report a 38.8 surge in EPS on a 1.8% increase in sales versus its year-ago quarter.
The Bottom Line
The results from these four companies and the subsequent responses from their stock prices are likely to be mixed on Friday. Each has succeeded in bouncing back from their March lows, but now investors are going to be taking a closer look at earnings releases for additional insight into the long term financial health of these companies. Potential investors who have been eyeing any of these names are advised to conduct their own due diligence prior to jumping in. (Learn more about earnings, read: Everything Investors Need To Know About Earnings).
Use the Investopedia Stock Simulator to trade the stocks mentioned in this stock analysis, risk free!
IN PICTURES: Digging Out Of Debt In 8 Steps
Energy Stocks Seeking a Spark
Friday morning the oil and gas giant, Chevron (NYSE: CVX), will check in with its Q4 earnings. Analysts are expecting the company to report a 20% drop in EPS on a 10.5% slide in revenue. Shares of CVX have significantly underperformed the market over the past 52 weeks, but the stock does carry a dividend yield of 3.6%.
A couple of weeks ago, Chevron said that its upstream business has been benefiting from higher commodity prices and that earnings from this segment should be in line with its Q3 results. The company did however note that it expects its downstream business to suffer as refining margins have been pinched. Net production is expected to be up on a sequential and year-over-year basis in Q4.
Another energy company set to report on Friday is St. Louis-based Arch Coal (NYSE: ACI). The consensus is that EPS will be down 61.4% on flat sales when compared to the company's year-ago quarter. Shares of ACI have rallied 55.7% from a year ago as the coal industry has begun to regain its stability.
The aerospace products company Honeywell (NYSE: HON) will also report its quarterly results on Friday. At this point, analysts are calling for the company to announce a 7.2% decrease in EPS on a 6.5% decline in revenue. Shares of HON have gained 20% over the past 52 weeks.
In its most recent quarter, Honeywell's aerospace segment battled lower volumes in commercial aerospace, but margins improved as the result of cost saving initiatives. The company did win a major contract with the U.K.'s Ministry of Defense to retrofit its fleet of Chinook helicopters. Honeywell also experienced a major improvement in its free cash flow on a year-over-year basis.
Strong Surge
Shares of Mattel (NYSE: MAT) are up 30% since one year ago and have nearly doubled since their 52-week low in March. The toy manufacturer will be releasing its Q4 earnings before the market open on Friday. Wall Street is expecting the company to report a 38.8 surge in EPS on a 1.8% increase in sales versus its year-ago quarter.
The Bottom Line
The results from these four companies and the subsequent responses from their stock prices are likely to be mixed on Friday. Each has succeeded in bouncing back from their March lows, but now investors are going to be taking a closer look at earnings releases for additional insight into the long term financial health of these companies. Potential investors who have been eyeing any of these names are advised to conduct their own due diligence prior to jumping in. (Learn more about earnings, read: Everything Investors Need To Know About Earnings).
Use the Investopedia Stock Simulator to trade the stocks mentioned in this stock analysis, risk free!

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