With Alcoa (AA) kicking off earnings season early last week, the focus for many investors has shifted away from larger macroeconomic reports and honed in on the reports of industry bellwethers. While Alcoa set the tone by beating estimates, many feared that the company would eventually fall prey to weakening aluminum prices, getting the second quarter earnings season off to a foggy start. This week, though mostly filled with major financial institutions, will feature several reports from key players throughout the commodity world, with a focus on energy [for more commodity news and analysis subscribe to our free newsletter].
Below, we outline some of the biggest commodity producers and what you should be looking for in their reports.
- El Paso Pipeline Partners (EPB): This MLP, like so many others, calls Houston home. The company currently operates approximately 13,000 miles of pipeline as well as a number of storage facilities for LNG. The firm will report earnings on Wednesday after market close and analysts will be looking for EPS of $0.47 with revenues just shy of $400 million. Note that EPB has surpassed three of its last four earnings marks.
- Kinder Morgan Inc. (KMI): Kinder Morgan is one of the biggest stocks in the MLP space, with a market cap topping $40 billion and trading more than 3.5 million shares on a daily basis. The firm operates in six segments, all of which focus on different aspects of the transportation and storage industry, be it geographic location or LNG versus crude oil. Like EPB, Kinder will release its earnings after the bell on Wednesday as analysts are looking for EPS of $0.33 and revenues of $3.14 billion. KMI will likely keep investors on the edge of their seat, as it has had some rough misses in the past year, making Wednesday’s report even more significant [see also How Are MLPs Taxed?].
- Nucor Corporation (NUE): This steel and iron company calls Charlotte, North Carolina home. The firm is dividend into three segments: steel mills, steel products and raw materials, all of which focus on a different facet of the steel world. When Nucor releases its earnings prior to Thursday’s opening bell, investors and analysts will be looking for EPS of $0.30 with revenues of $4.64 billion. The firm has been on an earnings hot streak this past year, surpassing its last three estimates.
- Schlumberger Ltd. (SLB): The biggest firm on the list, Schlumberger is well-known for its drilling and oil production as well as having a major presence in the fracking world. The stock boasts a market cap of just over $100 billion and trades more than 7 million shares on an average day. Schlumberger will release its earnings statement prior to market open Friday, where analysts have pegged the company with an EPS of $1.11 and revenues of $11.1 billion. Note that the company has a solid earnings rapport, beating the Street on the last four occasions.
A Final Note
While numbers are certainly key when it comes to earnings reports, sometimes the guidance given can overshadow a miss or a beat. Pay close attention to what the company forecasts for the future and the nature of those predictions. A poor outlook can quickly erase a solid quarter and send the stock spiraling downward and vice versa.
Disclosure: No positions at time of writing.