Earnings to Watch Next Week: Twitter, General Motors, Coca-Cola, PepsiCo and Walt Disney in FocusFollowing is a list of company earnings scheduled for release February 8-12, along with earnings preview for select companies. There are dozens of S&P 500 companies reporting earnings next week.
75% of retail CFD investors lose money
KKR & Co Inc, an American global investment company that manages multiple alternative asset classes, is expected to post earnings of $0.41 per share for last quarter of 2020 with revenue of around $983.08 million. The U.S. private equity firm reported EPS of $0.44 per shares with revenue of $962.07 million in the same period a year ago.
“While we see an attractive organic asset growth trajectory, we also see a recessionary backdrop that raises risk to KKR‘s fee-related earnings growth story if fundraising slows, transaction fees stall, and costs don’t flex as performance fees and investment income decline,” noted Michael Cyprys, equity analyst at Morgan Stanley.
“Recessionary backdrop raises risk of balance sheet marks and limited book value growth that could dampen prior ROE generation of mid-teens to 20%+. C-corp structure (as of July 1, 2018 ) with no K-1s should help expand the investor base over time.”
|RCL||Royal Caribbean Cruises||-$5.04|
|DNB||Dun & Bradstreet||$0.26|
|RAMP||Liveramp Holdings Inc||$0.07|
|BECN||Beacon Roofing Supply||$0.60|
|JKHY||Jack Henry Associates||$0.87|
|KKR||KKR & Co LP||$0.41|
|RGA||Reinsurance Of America||$1.10|
|LEG||Leggett & Platt||$0.70|
|TTWO||Take Two Interactive Software||$0.94|
|SPG||Simon Property Group||$0.90|
|RBC||Regal Beloit Corporation||$1.58|
|TYOYY||Taiyo Yuden ADR||$2.47|
|OSH||Oak Street Health||-$0.23|
Tuesday (February 9)
IN THE SPOTLIGHT: TWITTER
Twitter, an online social networking service that enables users to send and read short 140-character messages called “tweets”, is expected to report a profit of $0.25 in the fourth quarter, which represents year-over-year growth of 16% from the same quarter last year when the company reported $0.25 per share.
The social media company will report revenue of $1.19 billion, up over 17% from the year-ago quarter.
“Lack of Negative Revisions and Relative Valuation: Valuation continues to be expensive, but we think investors are likely to continue to pay a premium for TWTR given 1) continued turnaround progress and 2) platform scarcity,” said Brian Nowak, equity analyst at Morgan Stanley.
“Execution Risk Remains Around Driving Advertiser ROI: Advertiser ROI has clearly improved on Twitter, but the company needs to improve ad targeting and measurability to compete with the larger players. To do that it will have to further personalize the content that users see and use its data more effectively, both of which remain key strategic challenges (and priorities) for management.”
|GT||Goodyear Tire & Rubber||$0.22|
|SPGI||S&P Global Inc||$2.54|
|JLL||Jones Lang LaSalle||$3.93|
|FOXA||Twenty-First Century Fox||-$0.06|
|J||Jacobs Engineering Group Inc||$1.27|
|MLM||Martin Marietta Materials||$2.28|
|FIS||Fidelity National Information Services||$1.57|
|NVT||nVent Electric PLC||$0.42|
|CARR||Carrier Global Corp||$0.36|
|NRZ||New Residential Investment||$0.32|
|CVE||Cenovus Energy USA||-$0.06|
|CNO||CNO Financial Group||$0.59|
|PEAK||Healthpeak Properties Inc||$0.05|
|CDAY||Ceridian HCM Holding Inc||$0.07|
|AMX||America Movil Sab De Cv Amx||$0.40|
|VERX||Vertex Inc. Cl A||$0.07|
|FOX||Twenty First Century Fox||-$0.06|
Wednesday (February 10)
IN THE SPOTLIGHT: GENERAL MOTORS, COCA-COLA
GENERAL MOTORS: the world’s largest auto manufacturers which ranked number 18 on the Fortune 500 rankings of the largest United States corporations by total revenue is expected to report a profit of $1.64 in the fourth quarter of 2020, which represents year-over-year growth of over 3000% from the same quarter last year when the company reported $0.05 per share.
The auto manufacturer will report revenue of $36.9 billion, up about 20% from the year-ago quarter.
“We are Overweight based on General Motors’ (GM) diversified portfolio, with multiple ways for GM to enhance shareholder value, through: EVs, ICE and Autonomy. GM also has leading North American margins, generates strong cash flow, and has a robust balance sheet,” wrote Joseph Moore, equity analyst at Morgan Stanley.
“We believe that the market is underestimating the SOTP of the GM enterprise via: 1) Legacy ICE, 2) GM EV, 3) GM‘s Ultium Battery business, 4) China JVs, 5) GM Finco, 6) GM Cruise, 7) hidden franchise value in brands such as Corvette and 8) GM Connected Services. GM management has a proven track record to allocate capital away from structurally challenged areas towards re-positioning the business model.”
COCA-COLA: The largest manufacturer, distributor and marketer of soft drink concentrates and syrups in the world is expected to report a profit of $0.42 in the fourth quarter of 2020, which represents a year-over-year decline of over 4.5% from the same quarter last year when the company reported $0.44 per share.
The auto manufacturer will report revenue of $8.74 billion, up about 4% from the year-ago quarter.
“We are Overweight on Coca-Cola (KO) after significant stock underperformance given COVID-19 impacts on KO‘s on-premise eating / drinking out business (~40% of sales) and gas & convenience (~10%) with gov’t mandated restaurant closures and reduced foot traffic. COVID impacts drove a large -26% organic sales decline in 2Q20, but trends improved to -MSD% in July/August and -LSD% in September/October. We forecast a recovery to ~8% organic growth in 2021/2022 with a post-COVID recovery in away-from-home,” said Dara Mohsenian, equity analyst at Morgan Stanley.
“We believe Coke‘s LT top-line growth outlook is above peers, with strong pricing power, and favourable strategy tweaks under Coke’s CEO, including increased innovation and a cultural shift towards a total beverage company.”
|TMHC||Taylor Morrison Home||$0.82|
|IPG||Interpublic Of Companies||$0.80|
|UAA||Under Armour Inc||-$0.07|
|TEVA||Teva Pharmaceutical Industries||$0.63|
|IQV||IQVIA Holdings Inc||$2.00|
|AEIS||Advanced Energy Industries||$1.34|
|PACB||Pacific Biosciences Of California||$0.42|
|HP||Helmerich & Payne||-$0.79|
|KGC||Kinross Gold USA||$0.22|
|WTS||Watts Water Technologies||$1.01|
|SLF||Sun Life Financial USA||$1.08|
|BHF||Brighthouse Financial Inc||$2.65|
|IFF||International Flavors Fragrances||$1.19|
|MFC||Manulife Financial USA||$0.56|
|REXR||Rexford Industrial Realty||$0.07|
|FR||First Industrial Realty||$0.18|
|MC||Moelis & Company||$1.29|
|NLY||Annaly Capital Management||$0.29|
|PDM||Piedmont Office Realty||$0.05|
|BE||Bloom Energy Corp||$0.00|
|MGM||MGM Resorts International||-$0.95|
|WH||Wyndham Hotels & Resorts Inc||$0.04|
|UA||Under Armour C share||-$0.07|
Thursday (February 11)
IN THE SPOTLIGHT: PEPSICO, WALT DISNEY
PEPSICO: The company which holds approximately a 32% share of the U.S. soft drink industry is expected to report a profit of $1.45 in the fourth quarter of 2020. According to Zacks Research, analysts expect that PepsiCo will report full-year 2022 earnings of $5.51 per share, with EPS estimates ranging from $5.50 to $5.55.
The company also recently announced a quarterly dividend, which was paid on Thursday, January 7th.
“We are Overweight on PepsiCo (PEP). We forecast Pepsi will post superior topline growth relative to peers driven by exposure to the higher growth/higher margin snacks category (2/3 of PEP‘s profit). Snacks is a higher growth category given: (1) shift to snacking vs. sit-down meals; (2) less pressure from health/wellness vs. beverages, and (3) PEP’s leading share in snacks vs. fragmented competition, driving share gains, and higher margins/ROIC,” said Dara Mohsenian, equity analyst at Morgan Stanley.
“We also see more structural Pepsi market share benefits post COVID-19, as PEP uses its DSD distribution advantage, to gain shelf space and share in snacks, and in beverages, where PEP is advantaged vs competition with much lower mix in away-from-home.”
Walt Disney, a family entertainment company will post EPS of -$0.33 per share in the fiscal quarter.
|NNN||National Retail Properties||$0.65|
|HII||Huntington Ingalls Industries||$4.56|
|FAF||First American Financial||$1.66|
|TAP||Molson Coors Brewing||$0.77|
|BAM||Brookfield Asset Management USA||$0.60|
|NUS||Nu Skin Enterprises||$1.19|
|LH||Laboratory Of America||$7.83|
|TPX||Tempur Sealy International||$0.51|
|SAFE||3 Sixty Risk||$0.29|
|AEM||Agnico Eagle Mines USA||$0.64|
|DVA||DaVita Healthcare Partners||$1.91|
|SHO||Sunstone Hotel Investors||-$0.37|
|FRT||Federal Realty Investment||$0.28|
|NCMGY||Newcrest Mining Ltd PK||$0.59|
|CX||Cemex Sab De Cv||$0.02|
|SBGSY||Schneider Electric SA||$0.63|
|BFAM||Bright Horizons Family Solutions||-$0.24|
|WST||West Pharmaceutical Services||$1.13|
|HTA||Healthcare Of America||$0.43|
|ALXO||Alx Oncology Holdings Inc.||-$0.39|
|OMAB||Grupo Aeroportuario Del Centro Nort||$0.23|
Friday (February 12)
|AIMC||Altra Industrial Motion||$0.69|
|WPC||W. P. Carey||$0.49|
|AUY||Yamana Gold USA||$0.10|
|YMZBY||Yamazaki Baking ADR||$0.40|