Three Earnings Reports You Need To Watch Before Tomorrow’s Opening Bell

General Electric (GE):

Industrials – Industrial Conglomerates | Reports July 21st, BMO.

The Estimize consensus calls for EPS of $0.26, one cent higher than the Wall Street consensus and a decrease of 49% YoY. Currently, the Estimize community is looking for sales of $29.23B, which is roughly inline with the Street.

The industrial conglomerate and the CEO will look to please investors after six straight quarters of negative price movement post-earnings. GE has been falling behind its competitors 3M (MMM) and Honeywell (HON). However, with the introduction of John Flannery, investors are hoping this will turn things around after 16 years without a transfer of power. Another important point to focus on is GE’s oil and gas aspect due to the recent merger with oil service provider Baker Hughes, but once again the future of oil prices is in flux.

Schlumberger Limited (SLB):

Energy – Energy Equipment & Services | Reports July 21st, BMO.

Estimize and the Wall Street consensus are in agreement for EPS coming in at $0.30, which is a gain of 30% YoY. Currently, the Estimize community is looking for sales of $7.28B which is inline with Wall Street.

Schlumberger is one of the world’s largest oilfield services company, and a company that is dependent on oil prices and production is equivalent to walking through a minefield as volatility persists. The Energy Information Administration came out with a report stating that oil might average only $53 this year and $56 in 2018. However, this report seems to be more optimistic compared to the banks who believe oil prices will be below $50. Due to the market share SLB holds, the effect of lower prices may not affect them immediately. Also, their international presence will help boost the slowing demand of oil in the United States.