As Wall Street embarks on the first full week of February, a large number of companies are set to release their earnings reports, providing a crucial glimpse into their financial standing and future outlook.
From industry leaders like The Walt Disney Company (NYSE:DIS) and healthcare stalwarts AstraZeneca (NASDAQ:AZN), Gilead Sciences (NASDAQ:GILD) and Amgen (NASDAQ:AMGN), to household names such as McDonald’s (NYSE:MCD) and PepsiCo (NASDAQ:PEP), this week’s reports offer insights across varied industries.
Tobacco sector updates will come from Philip Morris International Inc. (PM) and British American Tobacco p.l.c. (BTI), while Canopy Growth (CGC) will represent the burgeoning cannabis industry. Real estate heavyweights Annaly Capital Management (NLY) and Simon Property Group (SPG), along with energy giants Duke Energy (DUK), Enbridge (ENB) and BP (BP), will share their financial figures as well. Meanwhile, CVS Health (CVS) and Ares Capital (ARCC) will provide insights into healthcare services and investments.
The technology sector brings forth notable players such as Alibaba (BABA), Palantir Technologies (NYSE:PLTR), and PayPal (PYPL). Transportation leader Uber Technologies (UBER), cybersecurity expert Cloudflare (NET), and social media platforms Pinterest (PINS) and Snap (SNAP) also highlight the tech lineup.
Below is a rundown of the major quarterly updates anticipated in the week of February 5 to February 9:
Monday, February 5
Palantir Technologies (PLTR)
Palantir Technologies (PLTR) is slated to report its Q4 earnings after the closing bell on Monday, with analysts anticipating almost 90% growth in EPS and an 18% increase in revenue for the quarter.
Over the past 12 months, the shares of this Denver-based software company have nearly doubled, showcasing a remarkable performance that significantly surpasses the broader market gains. Despite this, it receives a Hold rating from both Wall Street analysts and Seeking Alpha’s Quant Rating system.
Seeking Alpha author The Value Edge Investor emphasizes that Palantir Technologies operates as a significant player in the realm of big data software, catering to governments, large enterprises, and small businesses. The analyst stated that Palantir’s distinctive sales strategy hinges on the concept of the software selling itself, contributing to rapid growth and robust financial performance.
Despite indications of extreme overvaluation based on backward-looking valuation metrics, The Value Edge Investor highlights Palantir’s solid PEG ratio and anticipates significant growth, painting a positive picture for the company’s future prospects.
- Consensus EPS Estimates: $0.08
- Consensus Revenue Estimates: $602.80M
- Earnings Insight: The stock has beaten revenue expectations in 7 of the past 8 quarters, missing EPS estimates twice in 5 of those reports.
McDonald’s (MCD)
The second-largest restaurant chain by total locations is set to release its Q4 earnings before the market opens on Monday, with analysts anticipating nearly 9% Y/Y growth in both the top and bottom lines.
Seeking Alpha’s Quant Rating system categorizes the stock as a Hold, underlining concerns about valuation, while Wall Street analysts lean towards a Buy recommendation.
In a noteworthy endorsement, HSBC designated McDonald’s as one of the top restaurant stocks to own in 2024 last month, assigning it a Buy rating and a price target of $317. The firm points out that the Chicago-based company is currently undergoing its fastest period of growth in over eight years, driven by extensive investments in restaurant renovation, asset modernization, and unit economics.
According to HSBC, key catalysts for McDonald’s in 2024 include an upswing in same-store sales and tangible benefits derived from the Accelerating the Arches strategy.
- Consensus EPS Estimates: $2.83
- Consensus Revenue Estimates: $6.45B
- Earnings Insight: McDonald’s has missed EPS estimates only once in the past 8 quarters, while missing revenue estimates twice.
Also reporting: Caterpillar (CAT), Simon Properties (SPG), Vertex Pharma (VRTX), NXP Semi (NXPI), ON Semiconductor (ON), Tyson Foods (TSN), Air Products (APD), Estee Lauder (EL), Chegg (CHGG) and more.
Tuesday, February 6
Ford Motor (NYSE:F)
Detroit-based automaker Ford Motor (F) is scheduled to release its Q4 earnings results after the market close on Tuesday. Year-over-year, EPS is anticipated to decline, while revenue is expected to remain relatively flat.
In mid-January, Ford announced plans to increase the production of its gas-powered Bronco and Ranger lines, concurrently reducing production of the F-150 Lightning EV. To facilitate this expansion, Ford (F) is introducing a third crew at the Michigan assembly plant, comprising 900 new hires and 700 employees from the Rouge EV Complex in Dearborn, currently engaged in the production of the F-150 Lightning.
On the Pulse, a Seeking Alpha contributor, adopts a bearish stance on the stock, expressing concerns over Ford Motor’s guidance for 2024. The contributor anticipates downward pressure on profits and raises apprehensions regarding the stability of electric vehicle demand.
- Consensus EPS Estimates: $0.12
- Consensus Revenue Estimates: $41.38B
- Earnings Insight: Ford has missed EPS expectations in 4 of the past 8 quarters, coming up short of revenue estimates thrice in that span.
Also reporting: CAVA Group (CAVA), Fiserv (FI), GE HealthCare (GEHC), Gilead Sciences (GILD), BP (BP), Amgen (AMGN), Snap (SNAP), Lumen Technologies (LUMN), Prudential (PRU), DuPont (DD), Enphase Energy (ENPH), Eli Lilly (LLY), Chipotle Mexican Grill (CMG), Spotify (SPOT) and more.
Wednesday, February 7
Alibaba (BABA)
Alibaba (BABA) is set to unveil its quarterly update on Wednesday, with the results coming out as its shares have experienced a 35% decline over the past year. While Wall Street analysts have a consensus Strong Buy outlook, while Seeking Alpha’s Quant Rating system suggests a Hold.
The company’s recent decision to abandon the cloud business spinoff may not immediately please short-term investors seeking catalysts, but it aligns with a positive stance from long-term investors, anticipating robust earnings growth in the coming decade, according to SA author Dilantha De Silva.
The Walt Disney Company (DIS)
Disney (DIS) is set to unveil its Q1 earnings results after the market closes on Wednesday. The entertainment giant’s shares have experienced a roughly 7% increase YTD, garnering a mixed market response. While Wall Street analysts lean towards a Buy recommendation, Seeking Alpha’s Quant Rating system expresses a more conservative Hold stance, pointing to concerns related to valuation.
Recently, Disney has announced new measures to crack down on password sharing for its streaming services, including Hulu, Disney+, and ESPN+. Starting March 14, existing subscribers will be restricted to sharing within their households, while new subscribers will face limitations starting January 25.
Disney defines “household” based on the collection of devices used by individuals residing there. This move aims to enhance the profitability of Disney’s streaming business and aligns with the industry trend following Netflix’s implementation of similar restrictions. The company anticipates positive impacts on its streaming business in the coming years, with the changes aligning with industry standards.
“The company is showing signs of recovery, with strong performance in various areas,” writes Investing Group Leader Daniel Jones.
- Consensus EPS Estimates: $1.04
- Consensus Revenue Estimates: $23.79B
- Earnings Insight: Disney has topped EPS expectations in 5 of the past 8 quarters, while revenue has beaten estimates in half of those prints.
Also reporting: Arm Holdings plc (ARM), Alibaba (BABA), PayPal (PYPL), CVS Health (CVS), Omega Health (OHI), Ares Capital (ARCC), Roblox (RBLX), Suncor Energy (SU), Emerson (EMR), Wynn Resorts (WYNN), Cameco (CCJ), Yum! Brands (YUM), Manulife Financial (MFC), McKesson (MCK), Paycom Software (PAYC), Hilton (HLT), Allstate (ALL), Mattel (MAT) and more.
Thursday, February 8
Philip Morris International (PM)
Following a report from key competitor Altria (MO) in the week prior, Philip Morris International (PM) is due to post its Q4 earnings update prior to the market open on Thursday. The tobacco manufacturer had already reaffirmed its outlook for the quarter in early December, including its full-year EPS forecast.
Philip Morris expressed optimism about an “excellent” anticipated organic top-line growth for 2023 and double-digit currency-neutral adjusted diluted EPS growth. This positive outlook is attributed to the sustained strength of their smoke-free portfolio, particularly driven by two blockbuster premium brands: IQOS and ZYN.
According to Ironside Research, a Seeking Alpha author, Philip Morris is contending with a decline in cigarette sales but is witnessing robust growth in Heated Tobacco Units and Nicotine Pouches. The analyst notes that temporary challenges, such as lower-margin device sales and increased investment, may impact the stock’s performance in the very near term.
On Wall Street, the prevailing sentiment remains bullish on PM, as analysts widely recommend a Buy. However, Seeking Alpha’s quantitative rating system adopts a more conservative stance, indicating a Hold for the stock.
- Consensus EPS Estimates: $1.45
- Consensus Revenue Estimates; $9.01B
- Earnings Insight: Philip Morris has beaten EPS expectations in 8 consecutive quarters, missing revenue estimates twice in that span.
Also reporting: Kenvue (KVUE), ConocoPhillips (COP), Pinterest (PINS), Cloudflare (NET), Duke Energy (DUK), AstraZeneca (AZN), Under Armour (UAA), Affirm (AFRM), NNN REIT (NNN), Take-Two (TTWO), S&P Global (SPGI), Expedia Group (EXPE), Baxter (BAX), Kimco Realty (KIM), Spirit Airlines (SAVE), Hershey Foods (HSY), Harley-Davidson (HOG) and more.
Friday, February 9
PepsiCo (PEP)
PepsiCo (PEP) is set to release its Q4 earnings before Friday’s opening bell. After robust Q3 results, the company anticipates a 13% increase in full-year 2023 core constant currency EPS, surpassing the previous forecast of +12%. The outlook also maintains a 10% growth in full-year 2023 organic revenue.
According to Seeking Alpha author Niccolo Braccini, PepsiCo provides investors with stability and an attractive dividend. The analyst further notes that the stock is reasonably priced based on the dividend discount model valuation.
In recent news, PepsiCo products were removed from Carrefour as the retailer appears to be reluctant to accept price hikes.
- Consensus EPS Estimates: $1.72
- Consensus Revenue Estimates: $28.37B
- Earnings Insight: Pepsi has beaten EPS and revenue estimates in 8 consecutive quarters
Also reporting: W.P. Carey (WPC), Plains All American (PAA), Newell Brands (NWL) and more.
