Earnings to Watch Next Week: Microsoft, Apple, Tesla and Facebook in FocusFollowing is a list of company earnings scheduled for release January 25-29, along with earnings preview for select companies. Next week’s earnings are of much significance for major market movements as over 100 S&P 500 companies, along with Microsoft, Apple, Tesla and Facebook will release their financial statements.
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Kimberly-Clark, an American multinational personal care corporation, is expected to report a profit of $1.62 in the fourth quarter of 2020, which represents a year-over-year decline of about 5.2% from the same quarter a year ago when the company reported $1.71 cents per share.
However, Wall Street forecasts the company’s revenue to grow over 3% to $4.7 from the same period year ago. For full-year 2020, revenue is expected to be at $19.1 billion.
“We maintain our Buy-rating and above-consensus EPS estimate into KMB’s 4Q report BMO on Monday. Kimberly Clark’s (KMB) shares have lagged staples as the market remains concerned about moderating POS trends in Dec/Jan and commodities; however, we see an upside to Street 4Q20 and ’21/’22 ests. w/commodity inflation reasonably reflected at current spots and view the bar as low into the print w/KMB trading at 16x P/E (30% discount to HPC peers vs. 20% hist. avg.),” noted Kevin Grundy, equity analyst at Jefferies, who rated the paper products giant “Buy” and set the price target at $152.
Florida-based insurance broker Brown & Brown will post earnings of $0.29 per share for last quarter of 2020.
|CBU||Community Bank System||$0.76|
|BOH||Bank of Hawaii||$1.11|
|AUY||Yamana Gold USA||$0.11|
|JJSF||J&J Snack Foods||$0.26|
|BRO||Brown & Brown||$0.29|
|AGNC||American Capital Agency||$0.65|
|ELS||Equity Lifestyle Properties||$0.33|
Tuesday (January 26)
IN THE SPOTLIGHT: MICROSOFT
MICROSOFT: The global technology giant is expected to report a profit of $1.64 in the fiscal second quarter, which represents year-over-year growth of about 8.6% from the same quarter last year when the company reported $1.51 per share.
The world’s largest software maker’s revenue is forecasts come at $40.23, up from the $36.91 billion reported the same quarter a year earlier.
“Q2 results likely highlight the durability of Microsoft‘s commercial businesses and conservatism in forward consensus expectations. After clearing tough Q2 product cycle comps and lingering COVID-19 impacts, strong secular positioning and an attractive multiple make Microsoft (MSFT) a top stock for the recovery,” said Keith Weiss, equity analyst at Morgan Stanley.
“At 26x CY22e GAAP EPS, MSFT trades at a premium to the S&P, warranted due to MSFT‘s premium return profile. Multiple expansion will likely come from gaining comfort in the durability of commercial business gross profit dollars.”
Johnson & Johnson, one of the world’s largest and most comprehensive manufacturers of healthcare products, will post earnings of $1.83 per share for last quarter of 2020.
|NEP||Nextera Energy Partners||$0.37|
|JNJ||Johnson & Johnson||$1.83|
|RTX||Raytheon Technologies Corp||$0.69|
|PPBI||Pacific Premier Bancorp||$0.56|
|SFNC||Simmons First National||$0.42|
|AMD||Advanced Micro Devices||$0.47|
|CNI||Canadian National Railway USA||$1.42|
|COF||Capital One Financial||$2.80|
|MXIM||Maxim Integrated Products||$0.68|
|VAR||Varian Medical Systems||$1.05|
|CHRW||C.H. Robinson Worldwide||$0.97|
|EHC||Encompass Health Corp||$0.85|
|FMBI||First Midwest Bancorp||$0.26|
Wednesday (January 27)
IN THE SPOTLIGHT: APPLE, TESLA, FACEBOOK
APPLE: The consumer electronics giant is expected to report profit growth of more than 12% of $1.41 in the fiscal first quarter of 2021 on sales of $102.61 billion, highlighted growth of over 11% from the year-ago quarter. That growth is largely driven by a strong demand iPhone handset, Mac computers, iPad tablets and wearables in the holiday season.
“Our December quarter revenue of $108.2B is 5% above consensus, while our EPS of $1.50 is 7% above consensus. We expect demand strength to continue and our FY21 revenue and EPS estimates are both 5% above consensus,” wrote Katy Huberty, equity analyst at Morgan Stanley.
“Given positioning into the quarter is muted after the rotation out of high-quality stocks over the past several months, we expect strong follow-through post-earnings and are buyers into the print. We also raise our price target to $152, from $144, as we mark our price target to market accounting for recent peer multiple expansion.”
TESLA: The California-based electric vehicle and clean energy company is expected to report a profit of $1.04 in the fourth quarter of 2020, posting a profit for the sixth straight quarter. The manufacturer of high-performance electric vehicles’ revenue is forecast to surge about 35% to $10 billion.
“A double-fly-wheel. We believe Tesla can leverage its cost leadership in EVs to aggressively expand its user base, over time generating a higher % of revenue from recurring/high-margin services revenue. Services drive the upside. We forecast Tesla’s (TSLA) network services EBITDA as a % of total TSLA EBITDA to reach 11% by 2025, 19% by 2030 and 37% by 2040. Tesla Service revenue includes automated driving, infotainment, upgrades, supercharging, maintenance, telematics, etc.,” said Adam Jonas, equity analyst at Morgan Stanley.
“Valuation supportive vs. tech. Including Network Services, Energy & Insurance to our core auto forecasts, at $810 Tesla trades at 25x EV/EBITDA in 2025 and 5x 2025 sales. Expensive vs. auto but not vs. software/tech comps.”
FACEBOOK: The world’s largest online social network is expected to report a profit of $3.16 in the fourth quarter of 2020, which represents year-over-year growth of 23.4% from the same quarter a year ago when the company reported $2.56 cents per share.
According to the Zacks Research, the social media conglomerate’s revenue will increase of 24.7% to $26.29 billion from the year-ago, largely driven by solid ad-revenue growth amid advertiser demand during the holiday period.
“Monetization Potential: We are positive on FB‘s monetization roll-out of Instagram as well as FB’s ability to continue to innovate and improve its monetization (Canvas Ads, Dynamic Ads, video). Combined with the high and growing engagement we see monetization upside going forward,” noted Brian Nowak, equity analyst at Morgan Stanley.
“Investing from Position of Strength to Drive Faster Long-Term Growth: We are modeling 29% GAAP opex (excl. one-time items) growth in 2021, implying an incremental $15bn in opex. Our base case model implies opex per employee moderates in ’21 while FB hiring remains roughly flat on an absolute basis. We believe FB will grow EPS at a 28% CAGR (2019-2022).”
|GIB||CGI Group USA||$0.97|
|NYCB||New York Community Bancorp||$0.26|
|SLG||SL Green Realty||-$0.27|
|CNS||Cohen & Steers||$0.68|
|CATY||Cathay General Bancorp||$0.76|
|CP||Canadian Pacific Railway USA||$5.03|
|CCI||Crown Castle International||$0.62|
|LVS||Las Vegas Sands||-$0.29|
|RJF||Raymond James Financial||$1.65|
|PKG||Packaging Of America||$1.48|
Thursday (January 28)
IN THE SPOTLIGHT: Mastercard, McDonald’s, Visa
Mastercard Inc, a leader in global payments and a technology company, will post earnings of $1.53 per share for last quarter of 2020, which represents a year-over-year decline of about 22% from the same quarter a year ago when the company reported $1.96 cents per share.
McDonald’s Corporation, one of the world’s largest American fast-food chain, will post earnings of $1.79 per share for last quarter of 2020. Visa Inc is also expected to report first-quarter earnings on the same day, with earnings of $1.28 per share for the quarter.
|ADS||Alliance Data Systems||$2.44|
|TROW||T. Rowe Price||$2.64|
|PNR||Pentair Ordinary Share||$0.63|
|EWBC||East West Bancorp||$1.01|
|RCI||Rogers Communications USA||$0.72|
|SWK||Stanley Black & Decker||$2.99|
|AIT||Applied Industrial Technologies||$0.74|
|MMC||Marsh & McLennan Companies||$1.13|
|COLB||Columbia Banking System||$0.60|
|MTSI||MACOM Technology Solutions||$0.37|
|VLY||Valley National Bancorp||$0.25|
|PEXNY||PTT Exploration & Production||$0.01|
|FFBC||First Financial Bancorp||$0.45|
|FIBK||First Interstate BancSystem||$0.80|
|X||United States Steel||-$0.62|
|FHI||Federated Hermes Inc||$0.78|
|AJG||Arthur J. Gallagher||$0.78|
|ORI||Old Republic International||$0.43|
|RHI||Robert Half International||$0.68|
|TOELY||Tokyo Electron Ltd PK||$0.78|
|FFIN||First Financial Bankshares||$0.37|
Friday (January 29)
|PSXP||Phillips 66 Partners||$0.89|
|MSGS||Madison Square Garden Sports||-$1.63|
|ATLCY||Atlas Copco ADR||$0.39|
|LHX||L3Harris Technologies Inc||$3.09|
|BAH||Booz Allen Hamilton||$0.93|
|BBVA||Banco Bilbaoizcaya Argentaria||$0.13|
|FBP||First Bancorp FBP||$0.18|
|KKR||KKR & Co LP||$0.41|
|GCTAY||Siemens Gamesa ADR||$0.02|
|SPG||Simon Property Group||$0.85|
|ASEKY||Aisin Seiki Co||$1.19|
|ALNPY||ANA Holdings ADR||-$0.35|