Amgen, AT&T and Yum! Brands Lead Today's Earnings: Crunching the Numbers

NEW YORK (TheStreet) -- In this post we profile 10 companies that report their quarterly earnings reports after the closing bell this afternoon. When we profile stocks pre-earnings, we include two "Crunching the Numbers' tables. The first table covers the technicals and the second table covers analysts' earnings-per-share estimates and our value levels, pivots and risky levels.

Let's start with individual profiles then get into the tables that follow.


Amgen (AMGN) ($117.02, up 2.6% YTD): Analysts expect the biotech giant to report earnings per share of $1.81 after the closing bell today. The stock traded to an all-time intraday high at $128.96 on March 21, then traded as low as $111.39 on April 14, just below its 200-day simple moving average at $114.91.

The weekly chart is negative, with its five-week modified moving average at $118.11. Weekly and semiannual value levels are $114.88 and $102.54, with a monthly risky level at $126.11.

Cree (CREE) ($57.56, down 7.9% YTD): Analysts expect the maker of semiconductors that enhance solid-state lighting to report earnings per share of 29 cents after the closing bell today. The stock has been below its 200-day SMA at $61.68 since Feb. 27, trading as low as $53.83 on April 15.

The weekly chart is negative but oversold, with its five-week MMA at $57.59. Annual and weekly value levels are $55.64 and $55.25 with semiannual and quarterly risky levels at $64.80 and $66.04.

Discover Financial (DFS) ($56.77, up 1.5% YTD): Analysts expect the credit card company to report earnings per share of $1.25 after the closing bell today. The stock set an all-time intraday high at $60.00 on March 21, then traded as low as $54.35 on April 11, staying above its 200-day SMA at $53.13.

The weekly chart shifts to negative on a close this week below its five-week MMA at $56.78. Semiannual value levels are $55.50 and $50.77, with weekly and monthly risky levels at $58.04 and $58.56.

Gilead Sciences (GILD) ($71.60, down 4.7% YTD): Analysts expect the biopharmaceutical company to report earnings per share of 75 cents after the closing bell today. The stock set an all-time intraday high at $84.88 on Feb. 25, then traded as low as $63.50 on April 11, below its 200-day SMA at $69.47.

The weekly chart is negative, with its five-week MMA at $72.32. The chart pattern clearly shows a bubble that has popped. Weekly and semiannual value levels are $63.25 and $63.19, with quarterly and monthly risky levels at $78.02 and $82.91.

Intuitive Surgical (ISRG) ($411.11, up 7% YTD): Analysts expect the maker of the da Vinci Surgical System to report earnings per share of $3.34 after the closing bell today. The stock traded as low as $370.03 on Jan. 6, then spiked as high as $541.23 on April 3. It crashed to $408.41 yesterday, April 21, staying above its 200-day SMA at $402.51.

The weekly chart is negative, with its five-week MMA at $431.37 and its 200-week SMA at $422.76. A quarterly value level is $385.68, with a monthly pivot at $417.26 and this week's risky level at $441.45.

Juniper Networks (JNPR) ($25.42, up 12.6% YTD): Analysts expect the provider of Internet infrastructure solutions to report earnings per share of 19 cents after the closing bell today. The stock set a multiyear intraday high at $28.75 on Jan. 24, then traded as low as $24.18 on April 15.

The weekly chart shifts to negative given a close this week below its five-week MMA at $25.59, with the 200-week SMA at $24.34. Semiannual and monthly value levels are $24.44 and $23.91, with an annual risky level at $26.25.

Skyworks Solutions (SWKS) ($37.02, up 29.6% YTD): Analysts expect the wireless semiconductor company to report earnings per share of 51 cents after the closing bell today. The stock set a multiyear intraday high at $39.34 on March 20, then traded as low as $34.30 on April 11.

The weekly chart is neutral, with its five-week MMA at $35.52. Semiannual value levels are $33.96 and $32.785, with a monthly pivot at $36.39 and weekly risky level at $39.78.

AT&T (T) ($36.06, up 2.6% YTD): Analysts expect the telecom giant and Dow component to report earnings per share of 70 cents after the closing bell today. The stock moved above its 200-day SMA at $34.36 to a 2014 intraday high at $36.23 on April 17.

The weekly chart is positive but overbought, with its five-week MMA at $34.87. Note that the stock held its 200-week SMA at $32.24 in early-March. A monthly value level is $33.53, with a semiannual pivot at $36.48 and semiannual and quarterly risky levels at $38.09 and $39.50.

VMWare (VMW) ($104.84, up 16.9% YTD): Analysts expect the provider of virtualization solutions for desktop computers and data centers to report earnings per share of 55 cents after the closing bell today. The stock set its 2014 intraday high at $112.89 on April 2, then traded as low as $98.88 on April 11.

The weekly chart is neutral, with its five-week MMA at $102.14. A monthly value level is $99.79, with weekly and semiannual risky levels at $109.34 and $127.96.

YUM! Brands (YUM) ($76.01, up 0.5% YTD): Analysts expect the parent of Taco Bell, Kentucky Fried Chicken and Pizza Hut to report earnings per share of 84 cents after the closing bell today. The stock held its 200-day SMA at $72.59 on March 27, then traded as high as $77.91 on April 2.

The weekly chart is positive, with its five-week MMA at $75.01. Monthly and quarterly value levels are $72.49 and $70.20, with weekly and semiannual risky levels at $77.88 and $80.68.


Crunching the Numbers with Richard Suttmeier: Moving Averages & Stochastics

This table provides the technical status for the stocks profiled in today's report.

There are five columns with moving average titles: Five-Week Modified Moving Average, 21-Day Simple Moving Average, 50-Day Simple Moving Average, 200-Day Simple Moving Average and the 200-Week Simple Moving Average.

The column labeled 12x3x3 Weekly Slow Stochastics shows the pattern on each weekly chart with readings from Oversold, Rising, Overbought, Declining or Flat.

Interpretations: Stocks below a moving average are listed in red.

Five-Week Modified Moving Average (MMA) is one of two indicators that define whether or not a weekly chart profile is positive, neutral or negative. The other is the status of the 12x3x3 weekly slow stochastic.

A stock with a positive technical rating is above its five-week MMA with rising or overbought stochastics.

A stock with a negative technical rating is below its five-week MMA with declining or oversold stochastics.

A stock with a neutral technical rating has a profile that is not positive or negative.

The 200-Week Simple Moving Average (SMA) is considered a long-term technical support or resistance and as a "reversion to the mean" over a rolling three to five year horizon. (Even Apple declined to its 200-week SMA in June 2013.)

The 21-Day Simple Moving Average is a short-term technical support or resistance used by many hedge fund traders to adjust positions. A stock above its 21-day SMA will likely move higher over a rolling three to five day horizon and vice versa.

The 50-Day Simple Moving Average is also a technical support or resistance used by many strategists and commentators in financial TV.

The 200-Day Simple Moving Average is another technical support or resistance and I consider this level as a shorter-term "reversion to the mean" over a rolling six to 12 month horizon. (Even Apple tested or crossed its 200-day SMA in nine of the last 10 years.)


Crunching the Numbers with Richard Suttmeier: Earnings & Where to Buy & Where to Sell

This table presents the EPS estimates including date and before or after the close, and where to buy on weakness and where to sell on strength.

EPS Date is the day the company reports their quarterly results.

EPS Estimate is the earnings per share estimate from Wall Street analysts.

Value Levels, Pivots and Risky Levels are calculated based upon the last nine weekly closes (W), nine monthly closes (M), nine quarterly closes (Q), nine semiannual closes (S) and nine annual closes (A). I have one column for pivots, which is a magnet for the period shown. The columns to the left of the pivots are first and second value levels. The columns to the right of the pivots are first and second risky levels.

Investors who wish to buy a stock should use a good-until-canceled GTC limit order to buy weakness to a value level. Investors who want to sell a stock should use a GTC limit order to sell strength to a risky level.

At the time of publication the author held no positions in any of the stocks mentioned.

This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff

Richard Suttmeier is the chief market strategist at ValuEngine.com. He has been a professional in the U.S. Capital Markets since 1972, transferring his engineering skills to the trading and investment world.

Suttmeier has an engineering degree from Georgia Tech and a Master of Science degree from Brooklyn Poly. He began his career in the financial services industry in 1972 trading U.S. Treasury securities in the primary dealer community. He became the first long bond trader for Bache in 1978, and formed the Government Bond Department at LF Rothschild in 1981, helping establish that firm as a primary dealer in 1986. This experience gives him the insights to be an expert on monetary policy, which he features in his newsletters, and market commentary.

Suttmeier's industry licenses include, Series 7 and Registered Principal (Series 24). He has been the Chief Market Strategist for ValuEngine.com since 2008 and often appears on financial TV.

Click here for details on Suttmeier's "Buy and Trade" investment strategy.

Richard Suttmeier can be reached at RSuttmeier@Gmail.com

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