While Intel Corporation (NASDAQ:INTC), CSX Corporation (NYSE:CSX) have just reported their earnings and Bank of America Corp (NYSE:BAC) is about to do the same thing, FMHR trader Jon Najarian was with Melissa Lee and Dominic Chu of CNBC and they have earlier discussed about what the earnings report of these companies could have in store for the market. Among the companies from the S&P 500 Index, which have reported their financial results so far, on an average only 13% have met the market estimates. At the same time Over 25% have come in below forecast.
Intel Corporation (NASDAQ:INTC), CSX Corporation (NYSE:CSX) and Bank of America Corp (NYSE:BAC) are three of different segments and have been performing on a different levels as well.
Intel Corporation (NASDAQ:INTC) was discussed first and this leading chip maker is currently on upside due to the computer upgrade cycle. The PC market has stabilized a bit which means the sales are not going down anymore but just that the companies are able to step up. Najarian thinks that it’s not just about the PC upgrades, the company is doing good in other segments too, however he said that he is bullish on the PC upgrade cycle too.
The estimated EPS for Q2 is $0.52 which is 34% over what it has been last year and the stock has gained over 22% since the beginning of the year. A total 19 analysts have a ‘Buy’ rating on Intel Corporation (NASDAQ:INTC), while five keep it at “Sell” and 23 have kept it on ‘Hold.’ However, the company has surprised everyone by exceeding the estimates. They have posted $0.55 per share, against an estimate of $0.52.
The next one was CSX Corporation (NYSE:CSX) and this stock is trading at multi year highs consecutively for the second day and it is also the first rail company to report earnings for the last quarter. According to Chu, CSX has performed fairly in line with the overall market this year. However, it has been lagging behind its peers from the same segment on the market so far. CSX Corporation (NYSE:CSX) is the oldest rail transport companies in America and they cover their base well with the transportation of coal. The company reported an EPS of $0.53, above the last year result of $0.51.
“It often times gives the investors atleast a bit of a taste or sense for what transportation trade could look like,” Chu said.
They also discussed about Bank of America Corp (NYSE:BAC) and Najarian had his target estimates ready for the stock to go bullish or bearish on the stock. He thinks that the stock can move up very quickly if it exceeds its estimates and he kept the next target for Bank of America Corp (NYSE:BAC) at $17.
“I think it is going to be whether or not earnings are 25 cents, bearish or 30 cents, bullish. I will just draw the line there. If it is above 30 I am saying it’s off to the races,” Najarian stated.