Friday's Earnings Reports To Watch: XOM, CVX, MRK, ABBV

Earnings season is upon us, which means that countless publicly traded companies continue to release quarterly earnings reports, updating investors on the company’s financial results and providing insight on how the economy has performed throughout the past quarter.

However, the insane amount of press releases during earnings season make it easy to for investors to become lost in the ocean of reports. Fortunately, the Zacks Earnings Calendar lists each company that is expected to report earnings on any given calendar date, making it a useful organizational tool for any investor.

With that said, let’s break down a few of the most important upcoming reports. Check out these four major companies that will release earnings reports on Friday, July 28:

Exxon Mobil Corporation (XOM) – Friday, July 28 – Before Market Open

Crude oil giant Exxon Mobil will release its quarterly earnings report tomorrow morning before the market opens. Our Zacks Consensus Estimate calls for revenues of $61.16 billion, which would represent year-over-year growth of 6%. Additionally, the company is projected to report earnings of $0.83 per share, which would constitute year-over-year growth of a whopping 101.90%.

Exxon has collaborated with Russia for exploring potential commercial reserves in the country, yet tensions between the United States and Russia might lead to sanctions on the country. This would thwart any attempt Exxon could make to capitalize on oil reserves within Russia. Also, Exxon features a dividend yield of 3.8%, which is one of the lowest among major energy firms and sits below the industry average of 4.76%. These facts, along with a Zacks Rank #4 (Sell), should turn heads for the wrong reasons as the company prepares to release its earnings report.

Chevron Corporation (CVX) – Friday, July 28 – Before Market Open

Energy behemoth Chevron is expected to post its quarterly earnings report before the market opens on July 28. Our Zacks Consensus Estimate calls for Chevron to real in $31.18 billion in revenues and report earnings of $0.89 per share, which would constitute strong year-over-year growth of 6.49% and 85.68%, respectively.

However, in the first-quarter, Chevron generated just $3.9 billion in operating cash flow while dealing out around $5.3 billion in dividends and capital expenditures. This trend could be detrimental for the company if it continues over the next few quarters, as the company would be relying on asset sales and debt to fill the deficit. Also, Chevron’s mass production in the violence-prone regions of Nigeria poses additional risk for investors. Chevron currently holds a Zacks Rank #4 (Sell), which could provide a gloomy financial outlook moving forward.

 Merck & Company, Inc. (MRK) – Friday, July 28 – Before Market Open

Merck & Company is a large global research-driven pharmaceutical company that discovers, develops and manufactures vaccines and medicines to address unmet medical needs. More importantly, the company is expected to release its quarterly earnings report tomorrow morning. According to the latest Zacks Consensus Estimates, Merck & Company is projected to report sales of $9.79 billion and earnings of $0.87 per share.

Merck features an impressive product portfolio and pipeline, including many candidates in the advanced stages of development targeting multiple diseases such as atherosclerosis, cancer, diabetes, and cardiovascular disease. The company has continued to prioritize its pipeline so that the candidates with the highest potential get the required support. Investors should feel a sense of optimism since Merck currently sports a Zacks Rank #2 (Buy) and has beaten its earnings estimates in each of its past thirteen operational quarters dating back to 2014.

AbbVie Inc. (ABBV) – Friday, July 28 – Before Market Open

AbbVie is a global, research-based biopharmaceutical company which focuses developing and marketing advanced therapies that address some of the world’s most complex diseases. According to the Zacks Consensus Estimates, AbbVie is projected to report revenues of $6.93 billion and earnings of $1.40 per share, which would constitute year-over-year growth of 7.43% and 11.27%, respectively.

AbbVie’s flagship product, Humira, continues to drive revenues. The anti-inflammatory product has witnessed sales increases of 11.7% in 2015 and 16.1% in 2016. The company expects Humira to real in total sales of more than $18 billion in 2020. The fact that AbbVie has defeated its earnings projections in each of its past thirteen operational quarters dating back to 2014, coupled with its adequate Zacks Rank #3 (Hold), should instill some confidence in investors as we approach the report.  

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