Stock Chart Analysis before Today’s Earnings Report of Google, Microsoft, Philip Morris, Morgan Stanley and Others (Part II)

Having already discussed about companies announcing earnings reports before the market’s open in part I like Philip Morris and Morgan Stanley, we move on to earnings reports being announced after the market’s close. Big companies like Google and Microsoft will most probably be in the news tomorrow alongside with others, such as Chipotle Mexican Grill, Intuitive Surgical and SanDisk. Additionally earnings reports will be made public during US trading session that needs attention, like the one of Danaher Corporation.

Starting from the last one, Danaher’s EPS estimate is $0.12 better than last year’s actual EPS ($0.69). The tech company that acquired Tektronix in 2007 for 2.85 billion has been experiencing a rather good 12-month period concerning its stock. DHR stock has gained more than 10 dollars per share from 2011 low at $40 and is currently trading for $52 per share. The key support level right on the 200-moving average has been confirmed 3 times since May, which could be interpreted as the ending of the short-term downtrend shown in the daily chart. Beating the estimate would certainly help the long-term uptrend’s resume, a fact that might have been predicted by Wednesday’s stock buyers who pushed DHR stock up 2.5%. The earnings report is being announced at 6AM.


Google EPS estimate is the only one above $10. Last year’s actual EPS was $8.74 and given the uptrend of GOOG stock it’s safe to predict a target price of more than $600 per share, despite the stock trading below the moving average. Key support level is at $560 and the most recent resistance level found at the weekly graph is at $670.


Microsoft on the contrary is expected to announce a lower EPS than last year’s actual one. The EPS estimate is set at $0.62 but the latest double bottom at the daily chart could mean a likely retest of the resistance level found at $33. Yet, MSFT stock hasn’t climbed above $38 in the last… decade! I assume today’s earning report won’t shock the stock market.


I admit I haven’t peaked at any chart of Chipotle Mexican Grill before. That is why I was surprised to find out the huge uptrend of CMG stock from $33 back in 2008 to $440 in April 2012! It explains why some friends and relatives over from USA have occasionally mentioned their visits to these restaurants! I suppose their food is top notch, judging by the company’s stock performance! Chipotle Mexican Grill’s earnings report is set at market’s close with an EPS estimate of $2.30. If the resistance level at $420 is broken, you’d find me trading long CMG during the day!


Speaking of huge uptrends, take a look at Intuitive Surgical stock chart! It’s not that ISRG stock price has gained almost $200 in 6 months, but more like 5500% in 10 years! ISRG shares were once traded for $8 back in 2003 and those lucky investors have seen their investment make money for years! Since the EPS estimate is also $0.60 higher than last year’s actual EPS, I fail to see how the uptrend ends in the next weeks. Sure the double top at $590 will resist but who would be surprised if the healthcare stock goes higher than Google?


But it’s not all bells and whistles in the earnings report time. Take SanDisk for example. The EPS estimate of the forthcoming earnings report is close to zero ($0.19) falling well below last year’s actual one ($1.14). Maybe that’s why there is a gap down in the daily chart. I suppose a decline below $31 is much more likely than a retracement up to the moving average. SNDK shares had a dreadful month in April losing about 40% of their value. SanDisk’s rival, Seagate, is expected to report financial results on Monday, July 30. That would be interesting, since Seagate is a milestone leader indicator for the hard drive and storage industry.