18 November 2011 at 9:59 GMT
If you have not noticed it yet the markets are interested in whether the patient, the Eurozone, dies or survives thus earnings are reduced to nothing in terms of market sentiment.
Nevertheless major companies are still reporting and those reports are worth reading for clues and insight into the health of the global economy. The most important earnings release next week is HP that is expected to report 4Q EPS of 1.14 down 14.7 percent from the same period last year. The company has had a rough ride this year with its shares down 35.2 percent as HP has disappointed its investors, fired the former CEO and changed strategy in its PC division. This is behind us now and the new CEO Meg Whitman is trying to shore up management and focus the business. Trading at forward P/E of 5.6 HP looks like an attractive target for investors that want global technology exposure in their portfolio.
On Wednesday, the US agricultural and forestry equipment maker Deere reports 4Q EPS of 1.44 up 33.1 percent year-over-year with estimates flat over the last three months. Despite having good momentum due to increasing demand for agricultural goods the shares are down 9.7 percent this year. Given the long-term trend in economic wealth and the massive amount of people coming out of poverty in the emerging economies, the company is probably worth looking at for a long-term portfolio. The company trades currently at forward P/E of 11.6.
You can find all earnings releases next week here.