Earnings to Watch Next Week: Autohome, Medtronic and Deere & Company in FocusFollowing is a list of company earnings scheduled for release November 23-27, along with earnings previews for select companies.
Autohome, a leading online destination for automobile consumers in China, is expected to report a profit of $6.31 in the third quarter with possible revenue growth of over 6% as demand for cars recovered in the world’s second-biggest economy.
The company has reported a higher-than expected-earnings in most of the last four quarters. Autohome Inc is expected to show an increase in its third-quarter earnings to 96 cents per share according to the mean Refinitiv estimate from seven analysts. Wall Street expects results to range from 89 cents to $1.02 per share, Reuters reported.
“We forecast ATHM’s revenue to grow 6% YoY to 2.3 billion yuan in 3Q20, and beat the higher end of its 3Q20 revenue guidance of 2,240 million to 2,280 million yuan, within which we forecast: (1) its media service revenue to remain flattish YoY; (2) its lead generation revenue to grow 1% YoY; and (3) its online marketplace revenue to increase 30% YoY supported by strong data product revenue growth (i.e. we expect ATHM’s data product revenue to increase 50% YoY in 3Q20). In addition, we expect ATHM’s 3Q20 non-GAAP net margin to improve ~5ppts YoY to 37% thanks to its effective cost control and better return of 818 Global Auto Show event this year vs. last year,” said Eddy Wang, equity analyst at Morgan Stanley.
“China’s auto market has witnessed a consistent recovery in 3Q20: New car sales have seen a decent recovery with new car sales growth improving to 8% YoY in 3Q20, sustaining its recovery trend since 2Q20. We note that new car sales growth continued to increase over 9% YoY in October, which bodes well for auto sales recovery to continue in 4Q20, the traditional peak season for auto sales in China,” Wang added.
Autohome’s shares closed 1.98% higher at $101.83 on Friday; the stock is up over 1% so far this year.
|KFY||Korn Ferry International||$0.05|
|BZUN||Buzzi Unicem RSP||$1.17|
|DQ||Daqo New Energy||$0.60|
|CENTA||Central Garden Pet||-$0.04|
|TCOM||Trip.com Group Ltd||$1.02|
|VIST||Vista Oil Gas||-$0.19|
|GPFOY||Financiero Inbursa ADR||$0.09|
|MSNFY||Minera Frisco ADR||$0.05|
|GCTAY||Siemens Gamesa ADR||$0.01|
|TLK||Telekomunikasi Indns Tbk Prshn Pp Pt||$0.40|
Tuesday (November 24)
IN THE SPOTLIGHT: MEDTRONIC
Medtronic, an American Irish-domiciled medical device company, is expected to report a $0.80 profit in the second quarter of the fiscal year 2021 after reporting $0.62 earnings per share in the second quarter of the fiscal year, topping the market estimate of $0.21 by $0.41.
Sell-side analysts forecast that Medtronic plc will post 3.93 earnings per share for the current year, according to American Banking and Market News.
“Peer C3Q results across cardiovascular, neuromod, surgical, and diabetes suggest up to ~5 points of F2Q upside. The Risk/ Reward for Medtronic is positive but resurgence concerns have muted the near-term upside case for “Phase 2” Large-Caps despite vaccine data,” said David R. Lewis, equity analyst at Morgan Stanley.
“Our Medtronic model currently sits at $7,125 million in total F2Q21 revenues (reflecting -8.4% organic declines) and $0.78 in EPS, roughly in-line with consensus at ~$7,064mn in revenues and $0.80 in EPS. We model ~$90 million in COVID-19 driven, incremental ventilator sales this quarter (following $150 million in both F4Q and F1Q), as demand in certain regions has likely waned but Emerging Markets remained as of F1Q EPS,” R. Lewis added.
Medtronic’s shares closed 0.75% lower at $110.16 on Friday. However, the stock is down about 3% so far this year.
|NJR||New Jersey Resources||$0.57|
|DKS||Dick’s Sporting Goods||$0.98|
|J||Jacobs Engineering Group Inc||$1.32|
|AEO||American Eagle Outfitters||$0.32|
Wednesday (November 25)
IN THE SPOTLIGHT: DEERE & COMPANY
Deere & Company, the world’s largest makers of farm equipment, is performing excellently so far this year. Shares of the Agricultural, construction and forestry equipment manufacturer are up about 50% so far this year. The company’s earnings report next week will provide investors with an insight into 2021, where it is also expected a profit of $1.31 in the fourth quarter.
In the previous quarter, Deere & Company reported $2.57 earnings per share, topping the consensus estimate of $1.26 by $1.31. The company had revenue of $7.86 billion for the quarter, compared to the consensus estimate of $6.70 billion. However, the company’s revenue plunged 12.4% compared to the same quarter last year. Analysts expect that Deere & Company will post 7.61 EPS for the current fiscal year, according to Zolmax.
“The Zacks Consensus Estimate for Deere’s earnings per share is pegged at $1.35 for the fiscal fourth quarter, suggesting a 36.9% year-over-year plunge. The Zacks Consensus Estimate for total revenues is pinned at $7.23 billion for the period, indicating a year-over-year decline of 16.9%. The company has a trailing four-quarter average earnings surprise of 36.18%,” noted analysts at Zacks Research.
Deere & Company’s shares closed 1.16% higher at $258.56 on Friday
Thursday (November 26)
|ASEKY||Aisin Seiki Co||$0.42|
|RLAY||Relay Therapeutics Inc.||-$0.32|
Friday (November 27)
No major earnings scheduled for release.