Brace Yourself For Another Wild Month In Stock Markets

For the year, the Dow is down -6%, the S&P 500 is down just over -9%, and the Nasdaq has lost -14.7%. The previous record-holder is January 2009, an ugly moment for the economy, when the stock market fell -8.6%. In addition, the VIX – aka the CBOE Volatility Index – has actually dropped back to around 31 after topping 37 earlier this week, its highest point since November 2020.

Keep in mind, the index isn’t registering anywhere close to levels reached during other periods of “extreme” volatility. For example, the index, which is measured between zero and 100, hit its highest point of almost 83 during the financial crisis in 2008. Its most extreme point during the pandemic was around 66 in March 2020. So, by comparison, this week’s volatility has been rather mild.

Federal Reserve

Some insiders equate the wild swings in stock prices to investors, particularly “big money,” trying to establish a new baseline for stock valuations minus the Fed’s easy money policies that have driven a massive amount of cash into markets since the pandemic began in 2020.

At its height, the Fed was pumping as much as +$120 billion per month into the system via its asset purchase program, ballooning its balance sheet to now nearly $9 trillion.

At the same time, the Fed has held its benchmark rate at near-zero and, before that, hadn’t even attempted to raise rates since 2018, and then only briefly. The last full-cycle of rate hikes was 2015. What’s more, investors haven’t really had to factor for inflation since the early 90s and it hasn’t been this high since the 80s.

Bottom line, whatever the new “normal” ends up looking like, it will be dramatically different from the pre-pandemic investing landscape. I’ve heard several large stock traders saying it seems to be the return of Alpha instead of the race to levered Beta. I hear others on Wall Street referencing it to a bit of league recreational youth baseball team where everybody now gets an award simply for participation, but then kids run into a rude awakening when performance really starts to matter.

It feels like we are there in the stock market; every business that was coming into the market was simply being rewarded with participation points, now people are starting to keep a real scorebook and counting the strikeouts and runs scored.

Economy still roars

The good news is that the U.S. economy continues to roar. Historically, a combination of moderate inflation and moderate interest rates has led to some of the biggest boom times for U.S. Last week, the Commerce Department said Q4 Gross Domestic Product (GDP) grew at an annualized rate of +6.9%, stronger than Q3’s +2.3% and well above Wall Street expectations of around +5.7% growth.

Consumer spending climbed at a +3.3% annual pace led by a +4.7% increase in services spending. But the real stand out was private investment which rocketed +32% higher, boosted by a surge in business inventories as companies stocked up to meet higher customer demand. Rising inventories, in fact, contributed nearly +5% to Q4 GDP growth.

On the one hand, the inventory build is positive because it indicates an easing of supply chain dislocations that should in turn help with inflation pressures. On the other hand, many economists note that the big boost from retailer and wholesaler restocking is not likely to be repeated.

Companies will also likely start to unwind at least some of that inventory in the quarters ahead, which could drag overall 2022 GDP, especially if consumer spending also drops off. And investors are more closely tracking consumer behavior as inflation continues to rise.

With consumer spending accounting for about 70% of the U.S. economy, any signs that belts are tightening or moods are getting overly pessimistic will likely set off some alarm bells.

Data to watch

Turning to next week, it will be another busy one for both key economic data as well as earnings. The main economic data highlight will be the January Employment Situation on Friday. Other key data includes ISM Manufacturing, Construction Spending, and the JOLTS report on Tuesday; ADP’s private payrolls report on Wednesday; Productivity & Costs, Factory Orders, and the ISM Non-Manufacturing Index on Thursday.

Earnings wise, results are due from NXP Semiconductor and Trane on Monday; Advanced Micro Devices, Alphabet, Amgen, Chubb, Electronic Arts, Exxon, General Motors, Gilead Sciences, Match Group, PayPal, Sirius XM, Starbucks, and UPS on Tuesday; AbbVie, Aflac, Allstate, Boston Scientific, CNH, Corteva, D.R. Horton, Ferrari, Humana, Johnson Controls, Meta (Facebook), MetLife, Novartis, Novo Nordisk, Qualcomm, Siemens, Thermo Fisher, TMobile, and Waste Management on Wednesday; Activision Blizzard, Amazon, Biogen, Carlyle Group, Check Point, Cigna, Clorox, ConocoPhillips, Deckers Outdoors, Eli Lilly, Estee Lauder, Ford, Hanesbrands, Hershey, Honeywell, Ingredion, Merck, Pinterest, Quest Diagnostics, Royal Dutch Shell, Snap, SnapOn, Wynn Resorts, and Xylem on Thursday; and BristolMyersSquibb, CBOE, Phillips 66, Regeneron, and Sanofi on Friday.

Bottom line, brace for another huge week of extreme volatility.

Wall Street Week Ahead Earnings: Alphabet, PayPal, Exxon Mobil, Meta, Qualcomm and Amazon in Focus

Investors will focus on December quarter earnings for stocks that are economically sensitive, which should show better profits than technology stocks. Increasing Treasury yields and risk aversion will hit the stock market hard next week, making the big tech earnings that much more critical. In addition, investors will closely monitor the latest news on the rapidly spread Omicron coronavirus variant to see how it impacts earnings in 2022.

Earnings Calendar For The Week Of January 31

Monday (January 31)

TICKER COMPANY EPS FORECAST
CBT Cabot $1.06
CRUS Cirrus Logic $1.91
FN Fabrinet $1.28
HLIT Harmonic $0.09
NXPI NXP Semiconductors $2.67
PCH PotlatchDeltic $0.48
RYAAY Ryanair Holdings $-0.15
SANM Sanmina $0.91
TT Trane Technologies $1.31
WWD Woodward $0.83

 

Tuesday (February 1)

IN THE SPOTLIGHT: ALPHABET (GOOGLE), PAYPAL, EXXON MOBIL

ALPHABET: The parent of Google and the world’s largest search engine that dominates internet search activity globally is expected to report its fourth-quarter earnings of $26.71 per share, which represents year-over-year growth of about 20% from $22.3 per share seen in the same period a year ago.

The Mountain View, California-based internet giant would post revenue growth of nearly 27% to $72.133 billion from $56.9 billion a year ago. It is worth noting that the company has consistently beaten consensus earnings estimates in the last two years, at least.

“Key Alphabet (GOOG) ’22 Ad Buyer Survey conclusions: i) Google Search remains highest ROI platform; ii) YouTube expected to gain ad share ’21-’23; & iii) GOOG Search & YouTube are the top platforms for ad buyers reallocating budget due to iOS changes. We est. GOOG’s share of WW Digital adv. (x-China) goes from 41% to 37% ’22-’27. We extended model to ’27, PT to$3,500 vs. prior $3,360, reiterate Outperform,” noted John Blackledge, equity analyst at Cowen.

PAYPAL: The digital payments company is expected to report its fourth-quarter earnings of $0.86 per share, which represents year-over-year growth of about 15% from $0.75 per share seen in the same period a year ago. The San Jose, California-based company would post revenue growth of over 12% to around $6.9 billion.

EXXON MOBIL: The oil company will see its earnings rise multi-fold in the fourth quarter thanks to higher energy prices and a waning pandemic that helped it bounce back after a tough period in 2020.

The Irving Texas-based company is expected to report its fourth-quarter earnings of $1.73 per share, which represents year-over-year growth of over 5,666%, up from $0.03 per share seen in the same period a year ago.

The U.S. largest publicly traded oil company is expected to report a 97.3% increase in revenue to $91.845 billion from $46.54 billion a year ago. On Dec 30, the Irving Texas-based company in its regulatory filing said that higher oil and gas prices would enable it to achieve annual profitability starting in 2021 with an operating profit increase of up to $1.9 billion.

The U.S. largest publicly traded oil company hinted that oil and gas earnings could decrease by up to $1.2 billion as a result of one-time charges for asset impairments and contractual costs. Exxon announced late last year announced that a sharply higher operating profit in oil and gas, prompting Credit Suisse, Scotiabank, and JPMorgan to raise their fourth-quarter earnings estimates.

“Improving FCF outlook and dividend sustainability. With a more constructive commodity price outlook, lower capital spending, and additional cash operating cost savings, the dividend is covered in 2021 and averages >100% over the next 5-years on our estimates. Improving dividend sustainability supports yield compression for Exxon Mobil (XOM) relative to CVX,” noted Devin McDermott, Equity Analyst and Commodities Strategist at Morgan Stanley.

“Cost cuts defend the dividend. In 2020, Exxon Mobil (XOM) reduced 2022-25 spending plans to $20-25B from $30-35B (recently extended to 2027), improving dividend sustainability while limiting further pull on the balance sheet. Additionally, Exxon Mobil (XOM) is targeting $6B in structural operating cost reductions by 2023 which should put upward pressure on consensus FCF estimates.”

TAKE A LOOK AT OUR EARNINGS CALENDAR FOR THE FULL RELEASES FOR THE FEBRUARY 1

TICKER COMPANY EPS FORECAST
AMD Advanced Micro Devices $0.69
AMCR Amcor $0.18
ASH Ashland Global Holdings $0.93
CTLT Catalent $0.79
CB Chubb $3.34
EA Electronic Arts $2.81
XOM Exxon Mobil $1.73
GM General Motors $0.84
NMR Nomura Holdings $0.2
SBUX Starbucks $0.8
UBS UBS Group $0.24
UPS United Parcel Service $3.05

 

Wednesday (February 2)

IN THE SPOTLIGHT: META PLATFORMS (FACEBOOK), QUALCOMM

META PLATFORMS (FACEBOOK): The world’s largest online social network is expected to report its fourth-quarter earnings of $3.78 per share, which represents a year-over-year decline of over 2% from $3.88 per share seen in the same period a year ago.

The Menlo Park, California-based social media conglomerate would post revenue growth of over 30% to around $33.04 billion. The social media giant has consistently beaten consensus earnings estimates in most of the quarters in the last two years, at least.

QUALCOMM: The world’s biggest mobile phone chipmaker is expected to report its fiscal first-quarter earnings of $2.77 per share, which represents a year-over-year decline of over 40% from $1.97 per share seen in the same period a year ago.

The chip manufacturer would post revenue growth of nearly 27% to $10.45 billion. It is worth noting that the company has consistently beaten consensus earnings estimates in the last two years, at least.

Qualcomm forecasts GAAP revenue in the first quarter of fiscal 2022 to be between $10 billion and $10.8 billion. On a non-GAAP basis, earnings will likely range from $2.90 to $3.10 per share, while GAAP earnings will likely range from $2.53 to $2.73 per share, according to ZACKS Research.

“After underperforming the SOXX for most of 2021 until a sharp rally late in the year, we see a strong setup for a now Apple-overhang-free Qualcomm in 2022 as investors begin to appreciate the diverse revenue drivers beyond Wireless. Expect solid print and guide, with focus on execution and growth in the connected intelligent edge and update our estimates accordingly,” noted Matthew Ramsay, equity analyst at Cowen.

“We reiterate our price target of $210 based on 17.5x our F2023 EPS estimate of $12.0 and our Outperform rating.”

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

TICKER COMPANY EPS FORECAST
EAT Brinker International $0.5
CHRW C.H. Robinson Worldwide $1.85
CPRI Capri Holdings $1.67
CTSH Cognizant Technology Solutions $1.03
RACE Ferrari $1.08
FB Meta Platforms $3.78
MET MetLife $1.63
TMUS T-Mobile $0.2

 

Thursday (February 3)

IN THE SPOTLIGHT: AMAZON

The e-commerce leader for physical and digital merchandise, Amazon, is expected to report its fourth-quarter earnings of $3.9 per share, which represents a year-over-year decline of over 70% from $14.09 per share seen in the same period a year ago.

However, the Seattle, Washington-based multinational technology giant would post revenue growth of about 10% to around $138 billion. The company has beaten earnings per share (EPS) estimates most of the time in the two years.

“We are reiterating our BUY rating and our price target to $3,900. Our price target is based on our updated discounted cash flow model, including our long-term adj. EBITDA margin forecast of 22.0% versus 13.7% in 2020,” noted Tom Forte, MD, Senior Research Analyst at D.A. DAVIDSON.

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

TICKER COMPANY EPS FORECAST
ABB ABB $0.38
ALL Allstate $2.72
COP ConocoPhillips $2.23
LLY Eli Lilly $2.37
HON Honeywell International $2.09
PRU Prudential Financial $2.44
SU Suncor Energy $0.95
SYNA Synaptics $2.63

 

Friday (February 4)

TICKER COMPANY EPS FORECAST
APD Air Products & Chemicals $2.51
AON Aon $3.33
BMY Bristol Myers Squibb $1.85
CBOE Cboe Global Markets $1.41
ETN Eaton $1.73

 

Earnings Week Ahead: NXP Semiconductors, Pfizer, Ferrari, Expedia and Moderna in Focus

Earnings Calendar For The Week Of November 1

Monday (November 1)

IN THE SPOTLIGHT: NXP SEMICONDUCTORS

The Eindhoven, Netherlands-based semiconductor manufacturer NXP Semiconductors will post earnings of $2.75 per share in the third quarter, which represents year-over-year growth of over 60% from $1.59 per share seen in the same period a year ago.

The leading supplier of high-performance mixed-signal products would post revenue growth of about 26% to around $2.8 billion. It is worth noting that the company has beaten consensus earnings per share estimates in each of the last four quarters.

NXP Semiconductors (NXP) has attractive exposure to secular growth themes like EVs, increasing penetration of ADAS, connectivity and mobile payments. Furthermore, the company has executed well this cycle and in particular its lean channel inventory positions them well for a snapback as demand improves,” noted Joseph Moore, equity analyst at Morgan Stanley.

“However, we move to the sidelines after a period of strong outperformance in the stock. NXPI’s multiple relative to peers has moved from a material discount to slightly above where it typically trades. Furthermore, we think meaningful EPS revisions are going to be more difficult to come by near term.”

TAKE A LOOK AT OUR EARNINGS CALENDAR FOR THE FULL RELEASES FOR THE NOVEMBER 1

Ticker Company EPS Forecast
CCC Computacenter £81.30
MSGS Madison Square Garden Sports -$1.08
RYAAY Ryanair $1.06
ON ON Semiconductor $0.74
TTM Tata Motors -$0.14
L Loews $0.63
CNA CNA Financial $0.66
TKR Timken $1.17
AMG Affiliated Managers $3.91
SANM Sanmina $0.99
CHT Chunghwa Telecom $0.34
BEN Franklin Resources $0.86
CXP Columbia Property $0.02
ANET Arista Networks $2.73
O Realty Ome $0.40
PCG PG&E $0.26
CLX Clorox $1.03
FANG Diamondback Energy $2.78
HOLX Hologic $1.00
SBAC SBA Communications $0.81
WMB Williams Companies $0.28
NXPI NXP Semiconductors $2.75
SPG Simon Property Group $1.06
MOS Mosaic $1.54
BRKR Bruker $0.44
CAR Avis Budget $6.85
CACC Credit Acceptance $11.74
NBIX Neurocrine Biosciences $0.61
CHGG Chegg $0.19
VNO Vornado Realty $0.29
OHI Omega Healthcare Investors $0.43
BRX Brixmor Property $0.09
ADC Agree Realty $0.46
NSP Insperity $0.86
CRUS Cirrus Logic $1.63
OGS One Gas $0.38
FN Fabrinet $1.33
AWR American States Water $0.75
KMT Kennametal $0.38
VRNS Varonis Systems $0.02
LEG Leggett & Platt $0.77
RIG Transocean -$0.16
OTTR Otter Tail $1.13
RMBS Rambus $0.33
BCC Boise Cascade $2.09
MCK McKesson $4.66
PSA Public Storage $2.14
TLK Telekomunikasi Indns Tbk Prshn Pp Pt $0.45

Tuesday (November 2)

IN THE SPOTLIGHT: PFIZER, FERRARI

PFIZER: The world’s largest pharmaceutical giant is expected to report a profit of $1.08 in the third quarter, which represents year-over-year growth of about 50% from $0.72 per share seen in the same period a year ago. 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 $22.7 billion, up nearly 90% from the same period a year ago.

Pfizer’s revenue and earnings have both reached new highs due to strong sales of its Coronavirus vaccine. Orders of coronavirus vaccines have continued to flood-in this year, which has led the company to upgrade its guidance multiple times.

According to the company’s latest quarterly update back in July, it expects revenue of $78.0 billion to $80.0 billion with adjusted earnings per share of $3.95 to $4.05. That would be a significant improvement from the $41.9 billion revenue and $2.22 EPS the company generated in 2020.

“We project solid growth prospects, and the company’s COVID vaccine offers significant accretion potential in 2021 and 2022. But we expect COVID vaccine sales and profits to decline significantly in 2023+,” noted Matthew Harrison, equity analyst at Morgan Stanley.

Pfizer’s dividend is expected to continue to increases at current level despite Viatris’ dividend payment. Lack of clarity in near to mid-term pipeline potential. Pipeline execution and M&A will be key to investor perception, given late-decade patent expiration exposure.”

FERRARI: The luxury sports car maker is expected to report earnings of $1.19 per share in the third quarter, representing a nearly 30% increase from $0.92 per share seen a year earlier. The company, known for its prancing horse logo, would post revenue growth of over 21% to around $1.3 billion.

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

Ticker Company EPS Forecast
BP BP £0.15
STAN Standard Chartered £0.22
NRZ New Residential Investment $0.35
MYGN Myriad Genetics -$0.05
ARNC Arconic Inc $0.52
SRCL Stericycle $0.60
IEP Icahn Enterprises $0.11
MPLX MPLX $0.72
TRI Thomson Reuters USA $0.38
MPC Marathon Petroleum $0.70
ZBRA Zebra Technologies $4.06
EIX Edison International $1.74
EL Estée Lauder $1.70
ETRN Equitrans Midstream Corp $0.16
LEA Lear $0.61
LDOS Leidos $1.62
FMS Fresenius Medical Care $0.56
TECH Bio Techne $1.72
LPX Louisiana Pacific $3.47
EXPD Expeditors International Of Washington $1.79
MKL Markel $13.64
SABR Sabre -$0.55
BP BP $0.89
WAT Waters $2.36
XYL Xylem $0.59
UAA Under Armour Inc $0.15
UA Under Armour C share $0.15
WEC Wisconsin Energy $0.78
SEE Sealed Air $0.82
INCY Incyte Corp $0.57
INGR Ingredion $1.45
PEG Public Service $0.92
RL Ralph Lauren $2.00
LGIH LGI Homes $4.12
ARCB ArcBest Corp $2.44
CTLT Catalent $0.65
GNRC Generac $2.37
OMCL Omnicell $0.91
HEP Holly Energy Partners $0.46
IART Integra LifeSciences $0.72
KKR KKR & Co LP $0.93
PFE Pfizer $1.08
MMP Magellan Midstream Partners $0.97
IDXX Idexx Laboratories $1.91
ETN Eaton $1.73
APO Apollo Global Management $1.09
AME Ametek $1.18
DD DuPont $1.12
RHP Ryman Hospitality Properties -$0.28
EPD Enterprise Products Partners $0.51
WLK Westlake Chemical $3.96
IPGP IPG Photonics $1.28
COP ConocoPhillips $1.51
GPN Global Payments $2.15
ROK Rockwell Automation $2.16
MLM Martin Marietta Materials $4.23
IT Gartner $1.56
EXLS ExlService $1.06
HSIC Henry Schein $0.94
BCH Banco De Chile $0.44
VRTX Vertex Pharmaceuticals $3.08
WES Western Gas Partners $0.62
TMUS T-Mobile Us $0.49
RARE Ultragenyx Pharmaceutical -$1.39
AMGN Amgen $4.27
AWK American Water Works $1.52
AKAM Akamai $1.39
LSCC Lattice Semiconductor $0.24
RACE Ferrari $1.19
CMI Cummins $3.93
DOX Amdocs $1.18
PACB Pacific Biosciences Of California -$0.22
EC Ecopetrol $2,419.00
NNN National Retail Properties $0.41
KAI Kadant $1.67
EXEL Exelixis $0.16
STE Steris $1.82
WU Western Union $0.58
RDN Radian $0.71
CRK Comstock Resources $0.35
LSI LIFE STORAGE $0.81
EXAS Exact Sciences -$0.84
HALO Halozyme Therapeutics $0.43
DEI Douglas Emmett $0.07
MANT ManTech International $0.85
VRSK Verisk Analytics $1.37
ENLC EnLink Midstream $0.04
GNW Genworth Financial $0.28
AIZ Assurant $1.37
MCY Mercury General $0.80
FNF Fidelity National Financial $1.65
IOSP Innospec $1.01
HLF Herbalife $1.09
LYFT Lyft Inc -$0.02
AMCR Amcor PLC $0.18
BFAM Bright Horizons Family Solutions $0.63
OKE ONEOK $0.82
Z Zillow $0.15
PAYC Paycom Software $0.90
PEAK Healthpeak Properties Inc $0.10
LPSN LivePerson -$0.15
EGHT 8X8 $0.01
FMC FMC $1.32
ATVI Activision Blizzard $0.70
DVN Devon Energy $0.93
AMED Amedisys $1.36
BKH Black Hills $0.65
PKI PerkinElmer $1.71
MRCY Mercury Systems $0.40
VOYA Voya Financial $1.61
XPO XPO Logistics $0.91
NMIH NMI $0.71
CDK Cdk Global $0.68
SRC Spirit Realty Capital New $0.36
MTCH Match Group $0.57
CZR Caesars Entertainment $0.16
TX Ternium $5.22
FRSH Papa Murphy’s -$0.14
MDLZ Mondelez International $0.70
PRU Prudential Financial $2.76
UNM Unum $1.15
CIB Bancolombia $0.60
AFG American Financial $1.86

Wednesday (November 3)

Ticker Company EPS Forecast
EMR Emerson Electric $1.18
EVRG Evergy Inc $1.74
SBRA Sabra Health Care Reit $0.14
OMI Owens Minor $0.61
CDW CDW $2.06
CRTO Criteo $0.35
ATRC AtriCure -$0.33
HZNP Horizon Pharma $1.54
CVS CVS Health $1.79
CLH Clean Harbors $1.02
IONS Ionis Pharmaceuticals -$0.51
ETR Entergy $2.40
MDU MDU Resources $0.82
EXC Exelon $1.08
MATX Matson $5.23
EQIX Equinix $1.61
BCRX BioCryst Pharmaceuticals -$0.29
BWA Borgwarner $0.72
BR Broadridge Financial Solutions $0.97
HBM HudBay Minerals Ord Shs $0.05
NVO Novo Nordisk A Fs $0.78
HUM Humana $4.67
CPRI Capri Holdings Ltd $0.94
BIP Brookfield Infrastructure $0.37
MAR Marriott International $0.99
DISCA Discovery Communications $0.38
DISCK Discovery Communications Disck $0.38
DISCB Discovery Communications Discb $0.38
NYT New York Times $0.20
CIM Chimera Investment $0.37
AVA Avista $0.06
SPR Spirit AeroSystems -$0.77
JLL Jones Lang LaSalle $3.53
BGCP BGC Partners $0.15
AAWW Atlas Air Worldwide $4.30
SMG Scotts Miracle-Gro -$0.87
HFC HollyFrontier $0.76
CRL Charles River Laboratories $2.58
BDC Belden $1.18
CWH Camping World Holdings $1.79
VSH Vishay Intertechnology $0.65
NI NiSource $0.09
LANC Lancaster Colony $1.51
LAMR Lamar Advertising $1.15
SUN Sunoco $1.06
MAC Macerich -$0.08
ODP Office Depot $1.51
FUN Cedar Fair $2.09
NCLH Norwegian Cruise Line -$2.04
QGEN Qiagen $0.54
CORT Corcept Therapeutics $0.22
ES Eversource Energy $1.06
PCRX Pacira $0.67
UTHR United Therapeutics $3.59
SHOO Steven Madden $0.77
FOX Twenty First Century Fox $1.03
ITUB Itau Unibanco $0.12
AGIO Agios Pharmaceuticals -$1.57
CVE Cenovus Energy USA $0.34
CLR Continental Resources $1.21
REGI Renewable Energy $1.16
PXD Pioneer Natural Resources $3.88
MFC Manulife Financial USA $0.64
STN Stantec USA $0.55
TTWO Take Two Interactive Software $1.35
APA Apache $0.91
FNV Franco Nevada $0.85
SID Companhia Siderurgica Nacional $0.43
KW Kennedy Wilson -$0.05
SWN Southwestern Energy $0.21
MGM MGM Resorts International -$0.06
FLT Fleetcor Technologies $3.48
EPR EPR Properties $0.28
SJI South Jersey Industries -$0.17
FOXA Twenty-First Century Fox $1.03
OAS Oasis Petroleum $1.75

Thursday (November 4)

IN THE SPOTLIGHT: EXPEDIA, MODERNA

EXPEDIA: The online travel shopping company would post its third-quarter earnings of $1.68 per share, which represents year-over-year growth of over 800% from a loss of -$0.22 per share seen in the same quarter a year ago. The Bellevue, Washington would post revenue growth of about 84% to around $2.8 billion.

“We see a favorable Expedia (EXPE) risk/reward given our expectation for a U-shaped room night decline and recovery as we see online travel room night growth returning to positive growth in ’21,” noted Brian Nowak, equity analyst at Morgan Stanley.

“We are bullish about EXPE’s recent strategic investments to increase its global property supply, invest in VRBO, and improve performance marketing and see these leading to faster long-term room night growth. While these investments are likely the correct long-term strategies for growth, we see higher execution risk, longer payback and more near-term margin pressure.”

MODERNA: The biotech company focused on drug discovery, is expected to report its third-quarter earnings of $9.01 per share, which represents year-over-year growth of over 1,600% from a loss of -$0.53 per share seen in the same period a year ago. The Massachusetts-based biotechnology company’s revenue would post revenue growth of 3,500% to around $6.09 billion.

“We are Equal-weight Moderna. While we believe there is long-term upside for Moderna, we believe the significant valuation increase associated with the success of the COVID-19 vaccine limits the near-term upside,” noted Matthew Harrison, equity analyst at Morgan Stanley.

“The company has taken an industrialized approach to developing mRNA based therapeutics and has rapidly generated a broad pipeline of 21 programs, 11 of which have entered clinical development. We believe Moderna’s mRNA drug development platform is more diversified and scalable compared with competitors, and is validated through broad partnerships with Merck and AstraZeneca. We see vaccines and rare diseases as the key valuation drivers of the company.”

TAKE A LOOK AT OUR EARNINGS CALENDAR FOR THE FULL RELEASES FOR THE NOVEMBER 4

Ticker Company EPS Forecast
IBP Installed Building Products $1.63
BLDR Builders Firstsource $1.63
TM Toyota Motor $2.62
PZZA Papa John’s International $0.71
TRGP Targa Resources $0.47
ZBH ZIMMER BIOMET HDG. $1.76
W Wayfair Inc. $0.03
MELI MercadoLibre $1.25
PWR Quanta Services $1.45
PENN Penn National Gaming $0.84
NTLA Intellia Therapeutics Inc -$0.85
APTV Aptiv PLC $0.37
IX Orix $2.27
GPRE Green Plains -$0.29
MUR Murphy Oil $0.14
BGNE BeiGene -$4.70
BBD Banco Bradesco $0.12
CVCO Cavco Industries $2.72
PDCE PDC Energy $1.60
ILMN Illumina $1.26
EXPE Expedia $1.68
CYRX Cryoport Inc -$0.15
QDEL Quidel $3.52
IOVA Iovance Biotherapeutics -$0.53
MNST Monster Beverage $0.67
EOG EOG Resources $2.02
NFG National Fuel Gas $0.69
PFSI Pennymac Financial Services $3.43
OXY Occidental Petroleum $0.66
PRTA Prothena $2.26
MTZ MasTec $1.70
GBT BMTC Group -$1.11
TDS Telephone Data Systems $0.27
BAP Credicorp USA $10.73
USM United States Cellular $0.48
NKTR Nektar Therapeutics -$0.80
SWKS Skyworks Solutions $2.55
AL Air Lease $0.71
AIG AIG $0.91

Friday (November 5)

Ticker Company EPS Forecast
MGA Magna International USA $0.64
HE Hawaiian Electric Industries $0.59
SRE Sempra Energy $1.70
PNW Pinnacle West Capital $2.81
TRP Transcanada USA $0.80
HMC Honda Motor $0.56
VTR Ventas $0.05