Earnings reports for companies in the Standard & Poor's 500 index taper off next week, but there are still several big names to come.
Exxon Mobil, ChevronTexaco and Halliburton are among the energy-related companies with financial results scheduled for next week, while Lockheed Martin and Boeing will set the pace in the aerospace sector.
Altogether, some 136 companies in the Standard & Poor's 500 index will report quarterly earnings in the coming week, down from 178 this week, said Ashwani Kaul, senior market analyst with Reuters Research, a unit of Reuters Group Plc.
"Earnings from the US side have been positive and the vast majority ahead of estimates," said Frances Hudson, investment director at Edinburgh-based Standard Life Investments, which oversees $80 billion pounds sterling ($141 billion).
Of the 265 S&P companies that have reported so far, 205 have beaten estimates, and only 27 have missed. The number of companies beating estimates is up almost 18 percent from first quarter 2003.
Kaul said he expects 20 percent earnings growth for companies within the large-cap benchmark index, although positive earnings surprises could drive that figure near 22 percent.
"We crossed the 20 percent barrier for current projected S&P 500 growth with more than 50 percent of the index reporting," Kaul said. "At the rate companies are beating analysts' (expectations), our high-end 22 percent estimate is very vulnerable right now." Future quarters also look strong, he said.
While the volume of companies reporting slackens a bit in the coming week, the list includes many industry bellwethers.
On Tuesday, DuPont Co is expected to post first-quarter earnings of 95 cents a share.
Wall Street expects the No 2 US chemicals producer to benefit from a revived US economy, but will scrutinise results for the impact of high energy costs.
Verizon Communications Inc is also expected to post first-quarter earnings of 57 cents a share on the same day.
Lockheed Martin Corp is expected to report first-quarter profit of 53 cents a share.
On Wednesday, Boeing Co is expected to post quarterly earnings of 43 cents a share.

Copyright Reuters, 2004

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