As the quarterly earnings season continues, the upcoming week promises a flurry of reports from industry titans spanning a diverse array of sectors. From energy to semiconductors, cybersecurity to consumer packaged goods, the market will be abuzz with updates from key players shaping the economic landscape.
Among the notable names poised to release their earnings are Coca-Cola (NYSE:KO) and Cisco Systems (NASDAQ:CSCO). Meanwhile, Shopify (NYSE:SHOP) will offer insights into the booming e-commerce sector, while Energy Transfer LP (NYSE:ET) and Occidental Petroleum Corporation (NYSE:OXY) provide perspectives from the energy industry.
Tech enthusiasts will eagerly await updates from Roku (NASDAQ:ROKU). Datadog (DDOG) and Twilio (TWLO), while investors keep a keen eye on Coinbase Global (COIN) for developments in cryptocurrency.
From the world of finance, American International Group (AIG) steps into the spotlight. The earnings lineup also includes industry stalwarts like Kraft Heinz (KHC) in consumer goods, DraftKings (DKNG) in gaming, and Digital Realty Trust (DLR) in real estate, alongside innovators such as Upstart Holdings (UPST) in fintech and Biogen (BIIB) in biotechnology.
Other notable companies include Applied Materials (AMAT), The Trade Desk (TTD), Organon & Co. (OGN), Deere & Company (DE), Albemarle Corporation (ALB), Airbnb (ABNB), The Southern Company (SO), QuantumScape Corporation (QS), STAG Industrial (STAG), Waste Management (WM), Fastly (FSLY), Marriott International (MAR), Wyndham Hotels (WH) and Hyatt Hotels (H).
Below is a rundown of the major quarterly updates anticipated in the week of February 12 to February 16:
Monday, February 12
Waste Management (WM)
Waste Management (WM) is set to report is Q4 financial results after the market closes on Monday, with expectations for year-over-year growth in both EPS and revenue.
Despite this optimistic outlook, sentiment on the stock is mixed. Sell-side analysts maintain a Buy rating, but Seeking Alpha’s Quant Rating system, which grades stocks on quantitative measures like valuation and momentum, recommends a Hold.
Seeking Alpha contributor Dividendology underscores Waste Management’s resilience during economic downturns, attributing this stability to the 75% of its revenue characterized by annuity-like features. Furthermore, the company’s consistent commitment to shareholder value through strategic capital allocation has translated into an impressive track record of 19 consecutive years of dividend growth, the analyst stated.
- Consensus EPS Estimates: $1.53
- Consensus Revenue Estimates: $5.2B
- Earnings Insight: The waste management firm has beaten EPS and revenue expectations in 5 of the past 8 quarters.
Tuesday, February 13
Coca-Cola (KO)
Coca-Cola (KO) is set to unveil its Q4 earnings prior to the opening bell on Tuesday, following closely on the heels of a quarterly update from its chief competitor, PepsiCo (PEP).
The market remains notably bullish on Coca-Cola’s prospects, with a Strong Buy recommendation from Seeking Alpha’s Quant Rating system and a Buy rating from Wall Street analysts.
Notable sentiment from Seeking Alpha author AlmaStreet Capital further reinforces this positive outlook, citing Coca-Cola’s robust brand value and stable market share in North America as key drivers for its profitability. Highlighting the company’s track record of increasing dividend payouts and solid financial position, AlmaStreet Capital identifies Coca-Cola as an attractive investment opportunity for those seeking exposure to high-quality beverage products.
- Consensus EPS Estimates: $0.49
- Consensus Revenue Estimates: $10.65B
- Earnings Insight: The beverage giant has beaten EPS and revenue expectations in 8 straight quarters.
Shopify (SHOP)
Shopify (SHOP) is due to announce its Q4 earnings results after the closing bell on Tuesday, amid heightened anticipation following a double upgrade to Strong Buy from Hold by Seeking Alpha’s Quant Rating system on Friday. Wall Street analysts also echo positivity with a Buy recommendation for the e-commerce giant, which has seen its shares surge over 80% in the past year.
In a recent development, Shopify disclosed plans to increase the cost of its Plus plan, catering to larger merchants with annual revenues ranging from $1M to $500M. This adjustment, raising the plan’s price by 25% for a one-year subscription and 15% for a three-year subscription, follows a prior 33% hike in its base subscription plan, contributing to improved profitability.
Offering insight into the forthcoming earnings release, SA Investing Group Leader JR Research advises a balanced approach, noting Shopify’s anticipated optimism tempered by a focus on enhancing profitability. While the company’s impressive growth grade supports its valuation, JR Research urges investors to exercise caution and avoid chasing upward momentum.
- Consensus EPS Estimates: $0.30
- Consensus Revenue Estimates: $2.08B
- Earnings Insight: Shopify has beaten EPS and revenue estimates in 6 of the past 8 quarters.
Also reporting: Shopify (SHOP), WK Kellogg Co (KLG), Airbnb (ABNB), Upstart (UPST), Biogen (BIIB), Datadog (DDOG), AIG (AIG), MGM Resorts (MGM), Marriott (MAR), Lyft (LYFT), Pan Am Silver (PAAS), Alcon (ALC), Robinhood Markets (HOOD), Akamai Tech (AKAM), Restaurant Brands (QSR), Ecolab (ECL), Hasbro (HAS), Molson Coors Brewing (TAP), Moody’s (MCO), Zillow (ZG), IAC (IAC), AutoNation (AN), GoDaddy (GDDY), GlobalFoundries (GFS) and more.
Wednesday, February 14
Tech stalwart Cisco Systems (CSCO) is gearing up to unveil its quarterly results after Wednesday’s closing bell. Despite impressing with stronger-than-expected results in the previous quarter, Cisco (CSCO) has revised its full-year sales outlook downwards to a range of $53.8B to $55B (compared to a previous forecast of $57B to $58.2B), citing a slowdown in new orders. The company has maintained its fiscal 2024 adjusted earnings projection between $3.87 and $3.93 per share, falling short of the estimated $4.05 per share.
While Wall Street analysts maintain a Buy rating on Cisco, Seeking Alpha’s Quant Rating system suggests a Hold.
Recently, the European Commission has been deliberating on whether to grant approval for Cisco Systems’ proposed $28B acquisition of cybersecurity company Splunk, with a decision expected by March 13. This significant deal, announced in September 2023, aims to enhance security and resilience in the face of the increasing prevalence of artificial intelligence.
SA author Sungarden Investment Publishing highlights Cisco Systems’ ability to fit into dividend portfolios, noting its appeal as a dividend stock within the tech sector.
- Consensus EPS Estimates: $0.84
- Consensus Revenue Estimates: $12.70B
- Earnings Insight: Cisco has beaten EPS estimates in 8 straight quarters while exceeding revenue expectations in 7 of those reports.
Thursday, February 15
Applied Materials (AMAT)
Semiconductor equipment company Applied Materials (AMAT) is scheduled to release its quarterly earnings after the closing bell on Thursday. Over the past 12 months, the company’s stock has surged approximately 57%, reflecting investors’ confidence in its performance and outlook. While Seeking Alpha’s Quant Rating system recently downgraded its view to Hold from Buy, Wall Street analysts remain optimistic with a Buy rating.
SA author Khaveen Investments highlights the significance of the U.S. and European markets for Applied Materials (AMAT), noting their increasing importance in driving the company’s growth trajectory.
- Consensus EPS Estimates: $1.91
- Consensus Revenue Estimates: $6.49B
- Earnings Insight: Applied Materials has beaten EPS and revenue expectations in 7 of the past 8 quarters.
Friday, February 16
PPL Corporation (PPL)
PPL Corp. (PPL) is slated to report Q4 earnings before the opening bell on Friday. Just days before the earnings, Seeking Alpha’s Quant Rating system changed its outlook on the stock to Hold from Buy. Meanwhile, sell-side analysts maintain a consensus Buy recommendation.
Highlighting the company’s favorable regulatory environments, SA author Dividend Grower emphasizes PPL’s operations benefitting from allowable returns on equity exceeding national averages. This regulatory advantage could potentially contribute to the company’s long-term success, the analysts stated.
- Consensus EPS Estimates: $0.38
- Consensus Revenue Estimates: $1.90B
- Earnings Insight: The company has exceeded revenue expectations in 7 of the past 8 quarters and EPS expectations in 50% of those reports.
Also reporting: TC Energy (TRP), Vulcan Materials (VMC), Cinemark (CNK), Barnes Group (B), American Axle (AXL) and more.