Earnings reports will be in focus today as we wait for the Fed Chief’s history-making news conference on Wednesday following the FOMC meeting that gets underway today. Keeping us busy will be a slew of positive reports from a fairly representative slice of corporate leaders, ranging from Coke (KO) and Ford (F) to 3M (MMM) and United Parcel (UPS). Online retail giant Amazon (AMZN) reports after the markets close today.
Ford sped past earnings and revenue expectations, with quarterely results the best in more than 10 years. This solid result should help the automaker wipe out the disappointment from its last quarterly result. Also coming ahead of top- and bottom-line expectations was 3M. The maker of Post-It notes raised guidance for the year as well.
Autonation (AN), the nation’s largest autodealer chain, beat on EPS, but came in line with top-line expectations. To account for suppply disruptions from Japan, the auto chain lowered its forecast of total U.S. auto sales to the ‘mid-12-million’ range from its earlier estimate of 12.8 million. Also exposed to Japan was the luxury hand-bag maker, Coach (COH), which beat EPS and revenue expectations, with North American strength offsetting Japanese disruptions. The company also raised its quarterly dividend.
Reporting ‘softish’ results this morning is Coca Cola, modestly coming short of EPS and revenue expectations, with disruptions in Japan likely offsetting solid volume growth elsewhere in the world, including the U.S. UPS delivered a mixed result as well, with margin strength resulting in an EPS beat, but revenue coming short.
The market should get reassured by this earnings parade, but I will not blame it for having other issues on its collective mind: the Fed meeting getting underway today, the first-quarter GDP report on Thursday, and most importantly, the non-farm payroll report on Friday. There are just way too many important things coming out in the next few days that may keep the market from fully appreciating the ongoing earnings strength.
AMAZON.COM INC (AMZN): Free Stock Analysis Report
AUTONATION INC (AN): Free Stock Analysis Report
COACH INC (COH): Free Stock Analysis Report
FORD MOTOR CO (F): Free Stock Analysis Report
COCA COLA CO (KO): Free Stock Analysis Report
3M CO (MMM): Free Stock Analysis Report
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