Update on Second-Quarter Earnings Reports

Meredith Margrave's picture

Tuesday, July 21, 2009 - 6:20pm

by Meredith Margrave

Yesterday's earnings wrapup suggested three best bets, Caterpillar, Merck and UnitedHealth Group. All three companies exceeded expectations and posted strong gains. Caterpillar rose nearly 8%, Merck was up +6% and UnitedHealth gained 3%. The Dow and Nasdaq, by contrast, were flat for the day.

The biggest earnings surprise came from McClatchy, the newspaper publisher, which saw its shares gain +37% on a surprising second-quarter profit. That's a nice one-day gain, of course, but it comes after the company has lost functionally all of its market value. Shares remain off -84% for the past 52 weeks and are best suited for speculators, not investors.

Here's a look at some of today's earnings reports:

Company (Ticker) Estimate Reported Earnings Stock Price
Caterpillar (NYSE: CAT) $0.22 $0.72 +7.7%
DuPont (NYSE: DD) $0.53 $0.61 Flat
Schering-Plough (NYSE: SGP) $0.45 $0.38 +3.8%
Merck (NYSE: MRK) $0.77 $0.83 +6.1%
Coca-Cola (NYSE: KO) $0.89 $0.92 -1.3%
United Technologies (NYSE: UTX) $1.05 $1.05 -1.8%
Comerica (NYSE: CMA) -$0.36 -$0.10 -10.1%
Hudson City Bank (Nasdaq: HCBK) $0.25 $0.26 -4.5%
First Cash (Nasdaq: FCFS) $0.30 $0.38 +0.8%
State Street (NYSE: STT) $0.98 $1.04 -3.9%
United Health (NYSE: UNH) $0.70 $0.73 +3.0%
Yahoo (Nasdaq: YHOO) $0.08 $0.16 -1.5%
Continental Airlines (NYSE: CAL) -$1.35 -$1.72 -7.4%
United Airlines (NYSE: UAL) -$2.66 -$2.23 +6.0%
Southwest Airlines (NYSE: LUV) $0.07 $0.07 -5.9%
McClatchy (NYSE: MNI) -$0.08 $0.50 +37.0%
Apple (Nasdaq: AAPL) -$1.18 -$1.35 +4.8%

Each member of the Dow Jones Industrial Average that posted results today met or exceeded expectations.

Don't let State Street fool you: After one-time items that $1.04 profit turned into a -$7.12 loss. Apple shares rose after a better-than-expected showing, my colleague Andy Obermueller predicted shares would jump after hours, which they have. You can read the rest of Andy's predictions about Apple here.


Meredith Margrave does not personally hold positions in any securities mentioned in this article.
StreetAuthority LLC does not hold positions in any securities mentioned in this article.