Here’s your Investing Action Plan for Friday: what you need to know as an investor for the coming day.
Dow Jones industrial average component General Electric (GE) will headline earnings news, while fellow industrial giant Honeywell (HON) and oilfield services leader Schlumberger (SLB) also offer quarterly reports. But blowout earnings from industrial products maker Dover (DOV) may offer a clue as to what to expect from GE, Honeywell and perhaps even Schlumberger.
Early Thursday, the maker of refrigeration equipment and gear for the oil and gas industry reported a surprise earnings per share gain of $1.09, up 70% and blowing away expectations for a dip to 61 cents. Revenue rose 12% to $1.81 billion, above forecasts for $1.77 billion.
Dover also raised its full-year EPS and revenue guidance, citing “higher expectations in energy, and overall strong bookings activity.”
Shares spiked as much as 4.1%, nearing an 82.66 buy point, but they pared gains and closed up just 0.6% at 79.71 on the stock market today.
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Estimates: EPS to drop 19% to 17 cents, with revenue down 4% to $26.405 billion.
Stock: Shares climbed 0.9% to finish at 30.27, slightly outpacing the Dow average’s 0.85% gain, and are close to retaking their 200-day average for the first time in three months.
Analysts will pay close attention to organic industrial orders, which have been sluggish, and signs of improvement in its oil and gas segment ahead of that unit’s merger with Baker Hughes (BHI) later this year.
Estimates: EPS to rise 16% to $1.62 while revenue slips 2% to $9.33 billion.
Stock: Shares rose 0.8% to 123.77, heading back toward their 50-day line while remaining in buy range.
Honeywell cut its sales outlook in January, saying that weaker demand for business jets “persists” amid worries about the economy in the U.S. and abroad.
Estimates: EPS to fall 37.5% to 25 cents, but revenue is seen rising 7% to $6.98 billion.
Stock: Shares ended virtually flat at 76.51 and remain at the low end of a flat base with an 87.94 buy point.
If Q1 revenue estimates hold, they would mark Schlumberger’s first top-line increase in more than two years, as the recovery in crude prices takes hold.
But the rebound has been uneven, with U.S. activity taking off while international activity struggles to catch up.
The weekly oil rig count from Baker Hughes will also come out at 1 p.m. ET on Friday.
Previously Posted on Investor’s Business Daily