Earnings to Watch Next Week: Pfizer, Alibaba, Amazon, Alphabet and Qualcomm in Focus

• Monday (February 1)
• Tuesday (February 2)
• Wednesday (February 3)
• Thursday (February 4)
• Friday (February 5)

Earnings Calendar For The Week Of February 1

Monday (February 1)

IN THE SPOTLIGHT: VERTEX PHARMACEUTICALS, NXP SEMICONDUCTORS, ON SEMICONDUCTOR

VERTEX PHARMACEUTICALS: The biopharmaceutical company is expected to report a profit of $2.55 in the fourth quarter, which represents year-over-year growth of 50% from the same quarter a year ago when the company reported $1.70 cents per share.

However, Wall Street forecasts the company’s revenue to grow about 12% to $1.58 billion.

“Q4 estimates for Vertex‘s CF franchise appear achievable based on recent trends. With industry-leading growth and its fundamentals largely intact despite COVID-19, we expect the current dislocation between Vertex Pharmaceuticals’ (VRTX) trading price and the value of its CF franchise to be only temporary. We would use the recent stock weakness to build a position,” said equity analysts at Cowen and Company, who also gave a price target of $300.

NXP SEMICONDUCTORS: Eindhoven, Netherlands-based semiconductor manufacturer will post earnings of $2.11 per share in the December quarter on revenue of $2.46 billion, up from $1.98 per share on revenue of $2.30 billion same quarter last year. For the December quarter, the forecasts revenue in the range of $2.375-$2.525 billion which, at the midpoint, represents growth of 8% sequentially and 6% year-over-year.

“Management remains upbeat about near-term demand, including 2021, especially regarding its mobile chip business as the firm’s ultra-wideband connectivity solutions are rapidly gaining adoption within newer smartphones. We raise our fair value estimate to $150 from $130, and with shares trading around $134, we view shares as slightly undervalued,” said equity analysts at Cowen and Company.

ON SEMICONDUCTOR: Phoenix, Arizona-based semiconductors supplier company will post earnings of $0.28 per share for last quarter of 2020. The revenue is expected to slump 3.0% on a year-over-year basis.

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Tuesday (February 2)

IN THE SPOTLIGHT: PFIZER, ALIBABA, AMAZON, ALPHABET

PFIZER: The world’s largest pharmaceutical giant is expected to report a profit of $0.52 in the fourth quarter, which represents a year-over-year decline of about 5.4% from the same quarter last year when the company reported $0.55 per share.

The pharmaceutical company, which ranked 64th on the 2020 Fortune 500 list of the largest U.S. corporations by total revenue, will report revenue of $12.85 billion, up 1.3% from the year-ago quarter. According to chief executive officer Albert Bourla, Pfizer is likely to post this year’s earnings in the range of $3 to $3.10 per share.

“We lowered our 4Qe revenue by 5% from $11.6B to $11.0B and EPS by 6% from $0.40 to $0.38 to reflect lower doses delivered in 4Q. We lowered our 4Q COVID vaccine revenues from $683M to $150M (assuming $19.50/dose). Our prior model assumed 35M doses, which we lowered to 7.7M doses based upon CDC distribution allocations,” said David Risinger, equity analyst at Morgan Stanley.

“Our 4Q projections are well below consensus, but we do not see 4Q results as a stock driver given all of the confounding factors. We are instead focused on management’s 2021 targets.”

ALIBABA: The largest online and mobile e-commerce company in the world is expected to earn $2.65 per share for the third quarter, according to equities analysts at Oppenheimer. Oppenheimer also set EPS estimates for FY2021 at $7.48 and FY2022 at $9.33.

The Chinese multinational technology company has surpassed consensus estimates with an average of about 25% in all four previous quarters.

“We expect healthy GMV growth of 16% to drive core of core revenue growth of 18% on better monetization, but slower adjusted EBITA growth of 11% due to continued investment in new initiatives. Stay Overweight on F2022e non-GAAP P/E of 19x; lower price target to $320,” said Gary Yu, equity analyst at Morgan Stanley.

“We forecast total revenue of Rmb216bn (+33.8% YoY, +39.3% QoQ), non-GAAP EBITA of Rmb61.5bn (+21.4% YoY, +49.2% QoQ) with margin at 28.5% and non-GAAP net profit of Rmb57.2bn (+17.7% YoY, +16.1% QoQ) with margin at 26.5%.”

AMAZON: The eCommerce leader for physical and digital merchandise is expected to report a profit of $7.16 in the fourth quarter, which represents a year-over-year decline of over 10% from the same quarter last year when the company reported $6.47 per share.

The Seattle, Washington-based multinational technology giant will report revenue of $120.4 billion, up over 37% from the year-ago quarter. The company expects net sales between $112- $121 billion during the quarter.

“Amazon‘s high-margin businesses continue to allow Amazon to drive greater profitability while still continuing to invest (last-mile delivery, fulfilment, Prime Now, Fresh, Prime digital content, Alexa/Echo, India, AWS, etc),” noted Brian Nowak, equity analyst at Morgan Stanley.

“Amazon Prime membership growth drives recurring revenue and a positive mix shift. Cloud adoption hitting an inflection point. Advertising serves as a key area for both further growth potential and profitability flow-through.”

ALPHABET: The parent of Google and the world’s largest search engine, which dominates Internet search activity globally will post earnings of $15.68 per share for last quarter of 2020. The consensus mark for revenues is pegged at $44.09 billion, implying growth of 17.3% from the year-ago reported figure, according to ZACKS Research.

TAKE A LOOK AT OUR EARNINGS CALENDAR FOR THE FULL RELEASES FOR THE FEBRUARY 2

 

Wednesday (February 3)

IN THE SPOTLIGHT: QUALCOMM

QUALCOMM: San Diego, California-based multinational corporation that creates an intellectual property, semiconductors, software, and services related to wireless technology is expected to report a profit of $2.10 in the fiscal first quarter, which represents year-over-year growth of over 110% from the same quarter last year when the company reported $0.99 per share.

The semiconductor company will report revenue of $80.3 billion, up over 60% from the year-ago quarter.

“We see an improvement in smartphone demand in 2021 after declining 5% in 2020 due to COVID-19. We also see 5G adding greater dollar content and supporting industry-wide handset volume growth. Qualcomm’s (QCOM) leadership in cellular technologies (3G/4G/5G) puts the company in a favourable position to maintain leading market share,” wrote Joseph Moore, equity analyst at Morgan Stanley.

“The potential elimination of a major competitor in the Chinese market, HiSilicon, should benefit QCOM as Huawei currently does not pay royalties. To the extent competitors that do pay royalties are able to pick up market share, that would be beneficial for QCOM.”

TAKE A LOOK AT OUR EARNINGS CALENDAR FOR THE FULL RELEASES FOR THE FEBRUARY 3

 

Thursday (February 4)

 

Friday (February 5)