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Zacks Earnings Preview: 3M Company, American Express, Data Domain, Exxon Mobil and McDonald?s

^{Published on 2009-01-26 10:24:35, Last Modified on 2009-01-26 10:26:10 - Market Wire}
 

CHICAGO--([ BUSINESS WIRE ])--Zacks.com releases the list of companies likely to issue earnings surprises. This week's list includes 3M Company (NYSE: MMM), American Express Company (NYSE: AXP), Data Domain, Inc. (Nasdaq: DDUP) and Exxon Mobil Corporation (NYSE: XOM). To see more earnings analysis, visit [ http://at.zacks.com/?id=3207 ].

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The Week's Events

The Dow Jones Industrial Average's attempt at rebounding off of support at 8,000 will be tested by earnings reports from 11 components. Adding to the sustained volatility will be a 2-day meeting by the Fed and advanced fourth-quarter GDP.

More than 400 companies have been confirmed to release quarterly results this week. Included in the group are 131 S&P 500 members. 3M Company (NYSE: MMM), American Express Company (NYSE: AXP), Exxon Mobil Corporation (NYSE: XOM) and McDonald's Corporation (NYSE: MCD) are among the Dow components on deck.

The Fed will keep interest rates unchanged when it meets on Tuesday and Wednesday. Other measures for limiting the severity of the recession, such as buying treasuries, agency debt and mortgage-backed securities will be discussed.

Key economic releases will include December Leading Indicators, durable goods orders and fourth-quarter GDP.

• Monday: December Leading Indicators, December existing home sales
• Tuesday: January Conference Board consumer confidence, S&P/CaseSchiller housing index
• Wednesday: Fed statement (about 2:15 ET), weekly crude inventories
• Thursday: December durable goods orders, December new home sales, weekly initial jobless claims
• Friday: Advance fourth-quarter GDP, January University of Michigan consumer confidence (revised), December new home sales, January Chicago PMI

No Fed officials are scheduled to give speeches.

Companies That Could Issue Positive Earnings Surprises

In early December, 3M Company (NYSE: MMM) cut its full-year 2008 EPS guidance and projected a drop in 2009 earnings. Brokerage analysts immediately responded by slashing their estimates.

Since then, one analyst has raised his fourth-quarter projections. The revision did not move the consensus earnings estimate from its current level of 92 cents per share, but it did result in a most accurate estimate of 94 cents. Traders should also note that MMM has topped expectations for 7 consecutive quarters. MMM is scheduled to report on Thursday, Jan 29, before the start of trading.

Data Domain Inc. (Nasdaq: DDUP) has topped expectations during 3 out of the last 4 quarters. During the last 30 days, one analyst raised his fourth-quarter forecast. The revision was not significant enough to move the consensus earnings estimate from its current level of 3 cents per share. However, 2009 profit projections have been rising - a sign that some expect a positive outlook from the company. Data Domain is scheduled to report on Thursday, Jan 29, after the close of trading.

Companies That Could Issue Negative Earnings Surprises

Negative revisions by 4 of the 15 covering brokerage analysts have caused the consensus earnings estimate for American Express Company (NYSE: AXP) to fall 7 cents over the past 30 days to 23 cents per share. The most accurate estimate is even more bearish at 17 cents per share. The charge card issuer has missed once in the past 2 quarters. American Express is scheduled to report on Monday, Jan 26, after the close of trading.

Exxon Mobil Corporation (NYSE: XOM) has missed profit forecasts twice during the past 3 quarters. Ahead of the company's fourth-quarter report, 6 brokerage analysts have lowered their projections. The revisions caused the quarterly forecast to fall 18 cents over the past month to $1.58 per share. The most accurate estimate is even more bearish at $1.45 per share. Exxon Mobil is scheduled to report on Friday, Jan 30, before the start of trading.

Charles Rotblut, CFA, is the senior market analyst for Zacks.com.

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