4 Big-Name Earnings Reports to Watch This Week

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As we continue into earnings season, there are dozens of major companies releasing their financial results. With the combination of these results and the newly inaugurated President Trump, there is a lot of potential for volatility in the market.

The stocks below are some of the biggest dividend-paying companies that are reporting earnings this week.

Apple Inc. (NYSE: AAPL)

Apple will be reporting earnings after the closing bell on Tuesday, January 31. Analysts expect the tech giant to report quarterly earnings-per-share of $3.22, compared to $3.28 in the same quarter, a year ago.

The company’s earnings over the past year have been surprises in most cases, and have caused notable movement to its stock price. Although three of the four earnings releases have resulted in a positive stock price surprise, Apple shares plunged over 3% in April when it released its second quarter results.

Apple is the largest company in the United States by market capitalization, so it is highly watched and traded. The company reinstated its dividend payout in 2012 after suspending its dividend since 1995. Many technology companies chose to withhold from paying dividends, and instead, invest in innovation. However, Apple is known for its giant cash hoards, which has allowed it to raise its dividend by about 10% per year since it reinitiated its dividend. The stock currently offers a dividend yield of about 1.90%.

Quarter Ended Actual EPS Results Analyst Estimates
Sep 2016 (October release) 1.67 1.66
Jun 2016 (July release) 1.42 1.39
Mar 2016 (April release) 1.9 1.97
Dec 2016 (January release) 3.28 3.24
Altria Group Inc (NYSE: MO)
Altria is expected to release its financial results before the opening bell on Wednesday, February 1. The tobacco company is expected to report earnings-per-share of $0.67, which would match the results of the same quarter last year.
The stock has been heading upwards since its initial election drop. Although the company faces many challenges due to the nature of its business, it has done a good job growing its revenue and strengthening its key brands, including Marlboro.
Many investors prefer to invest in socially responsible stocks, but “sin” stocks can certainly add value in a dividend portfolio. Altria currently offers a dividend yield of approximately 3.4%, which is in-line with the average yield of cigarette companies.
The stock has been analysts’ estimates three out of four times during the last year.
Month Reported Actual EPS Results Analyst Estimates
Sep 2016 (October release) 0.82 0.81
Jun 2016 (July release) 0.81 0.80
Mar 2016 (April release) 0.72 0.68
Dec 2016 (January release) 0.67 0.68
Philip Morris International Inc. (NYSE: PM)
Phillip Morris is set to release its financial results before the opening bell on Thursday, February 2. The tobacco company is expected to report quarter earnings of $1.11 per share. This compares to quarterly results of just $0.81, a year ago.
The company’s share price plunged after the election, due to its exposure to foreign markets and the treat of a stronger dollar. While PM has struggled to rebound completely, it is slowly moving forward to recoup its losses.
Despite risks related to currency, Phillip Morris still offers a great dividend yield for investors. Currently, the company offers a dividend of 4.3%, which is above the average of its peers.
Month Reported Actual EPS Results Analyst Estimates
Sep 2016 (October release) 1.25 1.23
Jun 2016 (July release) 1.15 1.21
Mar 2016 (April release) 0.98 1.11
Dec 2016 (January release) 0.81 0.81
Merck & Co., Inc. (NYSE: MRK)
Merck is scheduled to release its quarterly release before the opening bell on Thursday, February 2. The pharmaceutical company is expected to report earnings-per-share of $0.88, which would be lower than last year’s EPS of $0.93.
Merck’s share price shot up after the election, along with many of its peers in the pharma industry. However, since the election its share price has dwindled down. Still, Merck’s stock price is up over 20% in the last 12 months, with outperforms the S&P 500.
The company offers a great dividend yield for investors, at around 3%. Merck has been boosting its dividend each year since 2012 by about 2% annually. In the last year, Merck has exceeded analysts’ expectations every quarter.
Month Reported Actual EPS Results Analyst Estimates
Sep 2016 (October release) 1.07 0.98
Jun 2016 (July release) 0.93 0.92
Mar 2016 (April release) 0.89 0.85
Dec 2016 (January release) 0.93 0.91

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