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Ahead of Earnings: JPM, AMR, XLNX
October 13, 2009
By: Billy Fisher
Contributor, Stock Traders Daily
Real Time Trading Reports: Included are detailed trading reports designed to help investors realize opportunities in these companies as earnings are released. The reports are linked to the stock symbols in the article below.
(La Jolla, CA) Now that the Q3 earnings season is in full swing, traders will be looking this week to some of the biggest and most prominent companies to report their results. The ensuing earnings releases will give traders better visibility when it comes to how Corporate America has been able to bounce back from a woeful Q3 in 2008. Here are three names to keep an eye on when they report their results.
Straight to the Bank
Traders can expect a strong quarter out of JPMorgan Chase (NYSE: JPM) when the bank reports its Q3 results before the market open on Wednesday. Analysts are expecting the company to check in with EPS of $0.49 versus $0.11 in the year-ago quarter. Sales are expected to be up 68.3% on a year-over-year basis.
CEO,
Jamie Dimon?s ability to successfully navigate the company
through rocky waters has the company?s stock price off
to the races. Shares are up 25.0% over a year ago and
are right around a 52-week high. In Q2, the company
repaid $25 billion in TARP capital and reported record
investment banking fees. With the bar already set high
ahead of earnings, traders will want to ensure that they
have adequate risk controls in place when trading this
stock. Our
free JPM trading report can help you implement these
safeguards.
Grounded
The picture will not be nearly as rosy when AMR (NYSE: AMR), the parent company of American Airlines, reports its quarterly results. Analysts are calling for a loss of $0.86 per share on a 20.6% drop in sales versus the company?s prior year quarter. Last week, the company reported that September traffic was down 3.5% compared to a year ago.
On the bright side, AMR?s loss will not be as severe as its loss of $1.39 per share in the company?s Q3 from 2008. Traders and investors alike have bid up shares of AMR nearly 200% since early March. Trading a high beta stock in a volatile sector going into earnings can be a lucrative proposition provided that one is on the right side of the trade. This is another stock where adequate risk controls will be of paramount importance and our free AMR trading report can assist you in this area.
Great Expectations
The semiconductor company Xilinx (Nasdaq: XLNX) is set to announce its fiscal Q2 earnings on Wednesday as well. At the end of September, the company upped its guidance to indicate a 10% sequential gain in sales due to broad based strength for its programmable logic solutions. This optimism has enabled the company?s stock price to continue to trade around its 52-week high.
On a year-over-year basis, analysts are expecting the company?s EPS to slide 42.1% on a 15.2% decrease in revenue. Last quarter, Xilinx succeeded in reducing its SG&A and R&D expenses by more than 5% sequentially which helped contribute to the company?s $128 million of operating cash flow. Year-to-date, Xilinx shares are up 30.2%. Traders looking to place a bet on XLNX prior to its release should check out our free XLNX trading report before pulling the trigger.
Looking to trade ahead of earnings? Check out dynamic real-time trading reports published by Stock Traders Daily CEO, Tom Kee Jr., with a Free Trial.
YTD 2009, Kee's Positions Trades are up +56% on 4 trades.
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