Notable earnings
Google (GOOG) is set to report Q2 earnings today after the close with a conference call to follow at 4:30pm ET. GOOG has reported shortly after the bell (4:03pm and 4:02pm) the past two quarters. Current Capital IQ consensus stands at EPS of $6.23 (vs. $4.87 last year) on rev of $15.6 bln (+11%). GOG willook to bounce back acfter missing Q1 estimates. GOOG has repeatedly said that it does not manage q/q and that it has longer term aspirations when it puts a plan in place. This can lead to some volatility in quarterly earnings. IBM (IBM) is expected to report Q2 non-GAAP EPS of $4.31 (vs $3.91 last year) on revs of $24.1 bln (-3.3% y/y). Co has guided for FY14 EPS of at least $18; consensus stands at $17.87. Co expects to achieve at least $20 of operating EPS in 2015 ($19.79 FY2015 Capital IQ Consensus). Mgmt also noted that they still expect to grow free cash flow by about $1 bln and to meet the $16 bln goal for the year, even with a tax headwind this year (bulk was taken in Q1). The co has posted rev declines the past eight quarters running, and has missed sales expectations five quarters in a row. Honeywell (HON) is expected to report Q2 EPS of $1.36 vs. $1.32-1.36 guidance and $1.28 last year on sales of $10.18 bln (+5%) vs. $10.0-10.2 bln guidance. Co has guided for FY14 EPS of $5.40-5.55 on rev of $40.3-40.7 bln. HON hasn't missed on the bottom line since 3Q11. Schlumberger (SLB) is expected to report Q3 EPS of $1.35 (vs. $1.29 last year) on rev of $11.95 bln (+7%). SLB surged to new all-time highs in late June as the co provided Bullish long term financial targets, including EPS of $9-10 by 2017; BHI, HAL, WFT. Seagate (STX) is expected to report Q4 EPS of $1.09 on revs of $3.33 bln (-2.9% y/y). Co guided for Q4 revs of at least $3.3 bln on last quarter's earnings call. The co is expected to guide for 1Q15 revs on its earnings call, with Capital IQ estimates calling for $3.52 bln. Last quarter, the co reported non-GAAP margin 28.5%. The stock has rallied ~26% in the 2+ month timeframe since May 7, when the co approached its multi-week low that also corresponded with its 200 sma (49.20) and the $50 psych level. Of note, on Seagate's Q3 conference call, they expressed the possibility that its recent acquisition of Xyratex could be accretive to its FY15 EPS. SkyWorks (SWKS) is expected to report Q2 EPS of $0.80 (vs. $0.54 last year) on rev of $570 mln (+31%). cO raised guidance to $0.80 and $570 mln from $0.73 and $535 mln on June 23. The AAPL supplier said is capitalizing on the growing opportunity within the Internet of Things as well as increasing analog complexity associated with higher data rate connectivity standards, both of which are enabling us to substantially outpace the growth of the broader semiconductor market. The stock has struggled at the $48 level. General Electric (GE) is expected to report Q2 EPS of $0.39 (vs. $0.36 last year) on rev of $36.4bln (+3.6%). Earlier in the week there were reports the co may sell its home appliance unit. Last month GE sold GE its Capital's consumer finance business in Sweden, Denmark and Norway for ~ EUR700 mln. Co is also acquiring Alstom's Power and Grid business.