Upcoming Earnings Reports to Watch: CSX, GS, IBM

Several large banking institutions, including JPMorgan Chase JPM and Wells Fargo WFC, released their latest quarterly results on Friday, marking the unofficial start of busy fourth-quarter earnings report cycle.

In the coming weeks, we will see reports from the world’s biggest and most relevant companies, meaning that investors need to be prepared for the ensuing movement that is likely to occur throughout the market.

According to the latest report from Sheraz Mian, the head of the Zacks Equity Research department and an acknowledged earnings expert, earnings growth is expected to be positive for 13 of the 16 Zacks sectors—and growth rates are projected to hit the double digits for our Energy, Technology, Construction, Industrial Products, Basic Materials, and Automotive groups.

Meanwhile, the revisions trend for Q4 earnings estimates has been favorable compared to recent quarters. Total earnings growth is now expected to touch 8.8%, up from a projected 8.4% just two months ago.

Investors should remember that they can always use the Zacks Earnings Calendar to plan out their schedules for earnings, dividend announcements, and other important financial releases. This handy tool is your perfect one-stop-shop to properly prepare for the market events that will have an impact on your own portfolio.

Today, we’ve made that task even easier for you. Using the Earnings Calendar, we looked ahead to next week and selected the biggest reports to watch. Make sure to keep an eye on these companies as they prepare to report during the week of January 15.

1.       CSX Corporation (CSX)

Rail transportation giant CSX Corporation is scheduled to release its latest earnings report after the market closes on January 16. Shares of CSX have been on a strong run over that past year, gaining roughly 53%. The company has met or surpassed earnings estimates in 15 consecutive quarters, and the stock is carrying a Zacks Rank #3 (Hold) into its report date.

Our latest consensus estimates are calling for CSX to post earnings of 56 cents per share and revenues of $2.88 billion. These results would represent year-over-year growth rates of +14.29% and -5.23%, respectively. CSX’s focus has been efficiency, so investors should keep their eyes on margins and free cash flow. Service disruptions could have an effect on the firm’s top line, but earnings growth should still be present.

 

2.       Goldman Sachs Group (GS)

Investment banking behemoth Goldman Sachs is slated to announce its latest quarterly results before the market opens on January 17. Goldman shares have gained just 5% over the past year, but the stock has moved nearly 7% higher within the past 12 weeks. The firm has met or surpassed earnings estimates in two straight quarters and is currently a Zacks Rank #3 (Hold).

Based on our current consensus estimates, we expect Goldman to report earnings of $4.90 per share and revenues of $7.63 billion. These results would represent growth rates of -3.54% and -6.60%, respectively. Goldman has struggled with a lack of volatility throughout global markets, and a one-time charge related to the new tax bill’s consideration of overseas profits will impact this quarter. Still, cost control efforts have been commendable and could support the bottom line.

 

3.       IBM Corporation (IBM)

Information technology player IBM is set to release its latest quarterly earnings report after the closing bell on January 18. The stock has dipped more than 2% over the past year, although shares have rebounded nearly 7% within the past four weeks. IBM has met or surpassed earnings estimates in 12 consecutive quarters and carries a Zacks Rank #3 (Hold) into its report date.

Our current consensus estimates are calling for IBM to report earnings of $5.17 per share and revenues of $21.96 billion. These results would represent year-over-year growth rates of +3.19% and +0.87%, respectively. IBM has been dealing with slumping revenues for years now, so seeing an uptick in quarterly sales would be encouraging. If it comes, it will likely be due to continued strength in the company’s cloud and IoT projects.

 

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