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Ahead of Earnings: HON, MSFT, EXC, SLB

 

October 22, 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. Performance - Click Here

(La Jolla, CA)  As the trading week comes to a close, several prominent large cap stocks could see some zing in their price as quarterly earnings results are unveiled. Here are four companies to watch as they announce their results on Friday.

Getting Defensive

Defensive stocks have traditionally fared better than most other areas of the market during a downturn. The aerospace and defense company Honeywell (NYSE: HON) fits into this category, but will not emerge entirely unscathed this time around. When the company announces its Q3 results before the market open on Friday, analysts are expecting a bit of a drop-off when compared to Honeywell’s Q3 from 2008.

EPS are expected to fall 25.8% on a 15.0% slide in revenue. At the end of its Q2, the company said that it was not expecting its operating environment to recover before the end of 2009, but the organization was taking cost actions to better position itself for profitability and free cash flow while the market improves. Traders that are looking to place a bet for or against Honeywell can view our free HON trading report for additional insight.

Magic 7

When Microsoft (Nasdaq: MSFT) reports its fiscal Q1 results before the market opens on Friday, analysts will be expecting the company to check in with EPS down 33.3% on a 17.9% drop in revenue when compared to the company’s year ago quarter. That said the stock is still trading near its 52-week high.

Last quarter, Microsoft launched its new search engine Bing, but still had a tough time in light of the weakness present in the global PC and server markets. Looking ahead, the company and its shareholders are hoping that the release of the new Windows 7 operating system will be a major driver for revenue growth at the Redmond-based company. Traders looking to trade Microsoft ahead of earnings can check out our free MSFT trading report to augment their game plan.

Re-Energized

Two energy companies that have steadily begun to regain their footing over the past two quarters are the oil services company Schlumberger (NYSE: SLB) and the utility company Exelon (NYSE: EXC). Both companies also announce their quarterly numbers on Friday.

The consensus is that Schlumberger will report a 49.6% drop in EPS on a 24.5% drop in revenue. Exelon is expected to announce a 10.3% decrease in EPS on a 1.6% drop in revenue. SLB has been trending higher in recent weeks along with the price of crude. And while EXC’s ascent has not been as sharp, the stock presently wields a healthy 4.1% dividend yield. Traders looking to place orders on either of these two stocks can benefit from reviewing our free SLB and free EXC trading reports.

Looking to capitalize on Q3 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 Position Trades are up +56% on 4 trades. 

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