Simon Property Tops Earnings and Revenue Estimates; Target Price $137 in Best Case

Simon Property Group, a self-administered and self-managed real estate investment trust, reported better-than-expected earnings in the first quarter and lifted full-year 2021 guidance, sending its stock to a 14-month high in intra-day trading on Monday.

The company, which owns, develops, and manages retail real estate properties, reported earnings per share of $1.36 on revenue of $1.24 billion, beating the Wall Street consensus estimates of $1.03 per share on revenue of $1.11 billion.

Simon Property lifted its full-year 2021 guidance for funds from operations to $9.70 to $9.80 per share, up from the previous projection of $9.50 to $9.75 per share.

Following this, Simon Property shares hit a 14-month high of $128.23 but lost 1.27% in after-hours trading on Monday. The stock rose over 48% so far this year.

Analyst Comments

“FFO beat cons by $0.21, benefitting from $0.10 of lease term. income. Guide raised by $0.13 to $9.75. Domestic NOI improved to -8.4% and total portfolio NOI increased to +4% but includes Taubman. Base min rent PSF increased, but leasing spreads decelerated and occupancy declined,” noted Richard Hill, equity analyst at Morgan Stanley.

Simon Property Stock Price Forecast

Nine analysts who offered stock ratings for Simon Property in the last three months forecast the average price in 12 months of $124.11 with a high forecast of $137.00 and a low forecast of $102.00.

The average price target represents a -2.08% decrease from the last price of $126.75. Of those nine analysts, six rated “Buy”, three rated “Hold” while none rated “Sell”, according to Tipranks.

Morgan Stanley gave the base target price to $135 with a high of $200 under a bull scenario and $60 under the worst-case scenario. The firm gave an “Overweight” rating on the real estate investment trust’s stock.

“We expect SPG to prove to be a long-term winner from the shake-up in retail given its strong balance sheet and ability to self-fund (re)development costs with FCF generation. Three factors differentiate their portfolio: 1) malls contributed only ~55% of total NOI, 2) after a 35% rationalization in the mall landscape, we estimate a ~5% hit to total NOI and 3) greater negotiating leverage with tenants post the acquisition of TCOs higher-quality malls,” Morgan Stanley’s Hill added.

“We expect the stock to re-rate to an FFO multiple of ~14x that’s in line with the 5yr historical average as conviction in the recovery grows.”

Several other analysts have also updated their stock outlook. Evercore ISI raised to outperform from in line and upped the target price to $128 from $112. Simon Property Group had its target price raised by BMO Capital Markets to $125 from $120.

The brokerage currently has a market performance rating on the real estate investment trust’s stock. Piper Sandler boosted their price target on shares of Simon Property Group from $115.00 to $130.00 and gave the stock an overweight rating.

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DraftKings Posts Better-Than-Feared Quarterly Loss; Lifts Full-Year Revenue Outlook

The U.S.-focused gambling operator DraftKings reported better-than-feared loss and higher revenue in the first quarter and raised the 2021 revenue outlook but the strong results failed to lift stocks which have lost over 18% so far this month.

Boston-based sports betting platform said its revenue increased 253% to $312 million from $89 million seen during the same period a year ago. That was above Wall Street’s consensus estimates of $236.2 million. The company reported a loss per share of $0.36, better compared to analysts’ expectations for a loss of $0.42.

DraftKings raised their forecasts for its fiscal year 2021 revenue guidance to $1.05 billion to $1.15 billion, up from a range of $900 million to $1 billion, which equates to year-over-year growth of 63% to 79% and a 16% increase compared to the midpoint of our previous guidance.

The increase reflects solid performance in the first quarter of 2021, continued strong user activation due to the effectiveness of our marketing spend, well-executed launches of mobile sports betting and iGaming in Michigan and mobile sports betting in Virginia, and a modest contribution from our recently completed acquisitions, the company said in the statement.

At the time of writing, DraftKings shares traded about 5% lower at $46.06 on Monday.

Analyst Comments

“1Q revs and updated ’21 rev guidance meaningfully beat, showing how strong the US sports betting / iGaming mkt is and DKNG’s dominant position. However, DKNG suggested higher EBITDA losses and is issuing materially more stock comp than expected. Our price target drops $3 to $63, still attractive, Overweight,” noted Thomas Allen, equity analyst at Morgan Stanley.

DraftKings Stock Price Forecast

Twenty-three analysts who offered stock ratings for DraftKings in the last three months forecast the average price in 12 months of $70.86 with a high forecast of $105.00 and a low forecast of $50.00.

The average price target represents a 53.78% increase from the last price of $46.08. Of those 23 analysts, 17 rated “Buy”, six rated “Hold” and none rated “Sell”, according to Tipranks.

Morgan Stanley gave the base target price to $63 with a high of $182 under a bull scenario and $11 under the worst-case scenario. The firm gave an “Overweight” rating on the gambling operator’s stock.

Several other analysts have also updated their stock outlook. Craig-Hallum slashed the target price to $60 from $70. Needham lowered the stock price forecast to $73 from $81. Benchmark trimmed the price objective to $64. JP Morgan cut the target price to $54 from $58. Truist Securities slashed the target price to $54 from $65.

“The continued progression of beat and raise quarters, coupled with strategic substantiveness should draw a positive reaction in the shares and supports our bullish stance on the name. The degree of stock reaction should also lie in commentary from Mgt regarding more recent complex state legalizations and the roll-out of its tech platform through the remainder for the year. Execution and estimate progression are central to our call, rather than valuation,” noted David Katz, equity analyst at Jefferies.

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Roku Shares Surge on Earnings, Guidance Beat

Roku shares jumped over 11% on Friday after the San Jose, California-based video-streaming device maker reported better-than-expected earnings in the first quarter and delivered strong guidance for the second quarter.

The company that manufactures a variety of digital media players for video streaming reported earnings per share in the first quarter of $0.54, beating the Wall Street consensus estimates of a loss of $0.12 per share.

The digital media hardware company said its revenue jumped 79% year-on-year to $574.18 million, coming in well above analysts’ expectations of $490.56 million. Roku forecasts revenue between $610 million to $620 million in the second quarter, beating the market consensus of $549.5 million.

Following the upbeat results, Roku shares jumped 11.5% to $317.0 on Friday. The stock fell over 4% so far this year.

Analyst Comments

Roku kicked off 2021 with a strong first quarter as revenue and operating income both handily beat FactSet consensus projections based on strong ad revenue growth. The firm only added 2.4 million accounts in the quarter, reaching 53.6 million, as the pandemic may have pulled forward some demand in 2020,” noted Neil Macker, senior equity analyst at Morningstar.

“However, streaming hours continued to expand to 18.3 billion, up another 1.4 billion hours sequentially and 6 billion versus the first quarter last year. We expect that the continued secular trend towards streaming will help drive growth in both streaming hours and revenue per user over the near term. We are maintaining our no-moat rating and our $170 fair value.”

Roku Stock Price Forecast

Twenty-three analysts who offered stock ratings for Roku in the last three months forecast the average price in 12 months of $457.64 with a high forecast of $560.00 and a low forecast of $300.00.

The average price target represents a 44.37% increase from the last price of $317.00. Of those 23 analysts, 19 rated “Buy”, three rated “Hold” and one rated “Sell”, according to Tipranks.

Morgan Stanley gave the base target price to $300 with a high of $400 under a bull scenario and $150 under the worst-case scenario. The firm gave an “Underweight” rating on the video-streaming device maker’s stock.

“We believe the market is underestimating the competition on Platform active accounts in the US, as well as the time it takes for international expansion to scale. Active account growth has benefited strongly in the US from share gains at TCL, and sustained growth will require additional share gains or major new smart TV partners,” noted Benjamin Swinburne, equity analyst at Morgan Stanley.

“We believe the market may be underestimating the ability to monetize strong streaming hours growth long term. Not all hours are equally valuable to Roku, and impressive hours growth reported by Roku is at least in part driven by ‘cable’ TV viewing benefit from MVPDs that are likely structurally less valuable to Roku than hours of long-tail publishers.”

Several other analysts have also updated their stock outlook. Keybanc lowered the target price to $460 from $518. Oppenheimer cut the price objective to $400 from $500. Benchmark slashed the stock price forecast to $550 from $600.

JPMorgan trimmed the target price to $500 from $525. Evercore ISI raised the price objective to $430 from $400. Pivotal Research slashed the target price to $350 from $400.

Check out FX Empire’s earnings calendar

Earnings to Watch Next Week: Marriott, Electronic Arts, Alibaba and Walt Disney in Focus

Earnings Calendar For The Week Of May 10

Monday (May 10)

IN THE SPOTLIGHT: MARRIOTT

Marriott International, an American multinational diversified hospitality company, is expected to report its first-quarter earnings of $0.03 per share, which represents a year-over-year decline of over 88% from $0.26 per share seen in the same quarter a year ago.

The U.S. hotel operator’s revenue would slump about 50% to $2.36 billion. However, in the last quarter, the company has delivered an earnings surprise of over 20%.

“Largest hotel brand company globally creates economies of scale, but the spread of COVID-19 will pressure unit growth. With the stock trading near its historical average multiple, we see too wide a risk-reward to justify recommending, with upside/downside driven by how severe and quick business trends return to normal post-COVID-19,” noted Thomas Allen, equity analyst at Morgan Stanley.

Tuesday (May 11)

IN THE SPOTLIGHT: ELECTRONIC ARTS

Electronic Arts, one of the world’s largest video game publishers, is expected to report its fiscal fourth-quarter earnings of $1.04 per share, which represents a year-over-year decline of over 3% from $1.08 per share seen in the same quarter a year ago.

The world’s largest video game publishers would post revenue growth of about 15% to around $1.39 billion. However, in the last four quarters, the company has delivered an earnings surprise of over 500%.

“For the fourth quarter of fiscal 2021, EA expects GAAP revenues of $1.317 billion, cost of revenues to be $302 million, and operating expenses of $837 million. EA anticipates a loss per share of 7 cents for the fourth quarter. Net bookings are expected to be $1.375 billion, which indicates an increase of $75 million over the prior guidance. For fiscal 2021, EA expects revenues of $5.6 billion, cost of revenues to be $1.477 billion, and earnings per share of $2.54,” noted analysts at ZACKS Research.

Wednesday (May 12)

Ticker Company EPS Forecast
WEN Wendy’s $0.15
WIX WIX -$0.68
DT Dynatrace Holdings $0.14
WWW Wolverine World Wide $0.40
LITE Lumentum Holdings Inc $1.42
DOX Amdocs $1.13
JACK Jack In The Box $1.29
GOCO Gocompare.Com $0.00
SONO Sonos Inc -$0.22
PAAS Pan American Silver USA $0.30
MAURY Marui ADR $0.15
TM Toyota Motor $3.67
AEG Aegon $0.17
BRFS BRF $0.02
EBR Centrais Eletricas Brasileiras $0.27
BAYRY Bayer AG PK $0.73
TCEHY Tencent $0.53
DM Dominion Midstream Partners -$0.13
FLO Flowers Foods $0.37

Thursday (May 13)

IN THE SPOTLIGHT: ALIBABA, WALT DISNEY

ALIBABA: China’s Alibaba Group Holding, the largest online and mobile e-commerce company in the world, is expected to report its fiscal fourth-quarter earnings of $1.82 per share, up over 40% from the same quarter a year ago. China’s biggest online commerce company’s revenue to surge more than 70% to $27.7 billion.

“Heightened investments in Taobao Deal and Grocery for user acquisition in less-affluent regions in China, should support long-term growth in core e-commerce business. Merchants’ marketing budgets will continue to shift online given rising reliance on e-commerce and better conversion. Alibaba’s ad resources remain under-monetized,” noted Gary Yu, equity analyst at Morgan Stanley.

“Digitalization trend in China will also sustain AliCloud’s growth potential. Gradual margin expansion will be a long-term profit driver. We see limited near-term catalysts but F22e P/E valuation remains attractive. We also see further downside support from additional disclosure to separate losses from new investments from profitable core e-commerce businesses.”

WALT DISNEY: The world’s leading producers and providers of entertainment and information is expected to report its fiscal second-quarter earnings of $0.27 per share, which represents a year-over-year decline of over 50%. The Chicago, Illinois-based family entertainment company’s revenue would slump over 10% to $ 16.1 billion.

Disney is building content assets that enable it to take advantage of the significant direct-to-consumer streaming opportunity ahead. Disney’s underlying IP remains best-in-class, supporting long-term content monetization opportunities,” noted Benjamin Swinburne, equity analyst at Morgan Stanley.

“During this period of FCF pressure from Parks closures, ESPN’s FCF generation is key to driving down leverage. Historical cycles suggest a potential return to above prior peak US Parks revenues in FY23.”

TAKE A LOOK AT OUR EARNINGS CALENDAR FOR THE FULL RELEASES FOR THE MAY 13

Ticker Company EPS Forecast
CELH Celsius $0.00
HAE Haemonetics $0.69
BABA Alibaba $11.80
BAM Brookfield Asset Management USA $0.87
TAC TransAlta USA $0.06
UTZ Utz Brands $0.15
VERX Vertex Inc. Cl A $0.05
FTCH Farfetch -$0.28
DIS Walt Disney $0.27
AMAT Applied Materials $1.50
DDS Dillards $1.20
VNET 21Vianet -$0.02
TEF Telefonica $0.16
PBR Petroleo Brasileiro Petrobras $0.12
NICE Nice Systems $1.50
TYOYY Taiyo Yuden ADR $2.09
IX Orix $1.97
SGAMY Sega Sammy ADR -$0.02
SOMLY Secom ADR $0.27
OJIPY Oji ADR $1.57
SBS Companhia De Saneamento Basico $0.15

Friday (May 14)

Ticker Company EPS Forecast
MFG Mizuho Financial $0.06
CIG Companhia Energetica Minas Gerais $0.08
HMC Honda Motor $0.41
SMFG Sumitomo Mitsui Financial $0.12
RDY Drreddys Laboratories $0.52

 

Lear Tops Q1 Earnings Estimates; Target Price $214 in Best Case

Lear Corporation, an American company that manufactures automotive seating and automotive electrical systems, reported better-than-expected earnings and sales in the first quarter and lifted its 2021 financial outlook.

Sales increased 20% to $5.4 billion, compared to $4.5 billion in the first quarter of 2020. That was higher than the market expectations of $4.89 billion. That growth continued to outpace the market in both segments; E-Systems growth over the market of 10 percentage points and Seating growth over the market of 9 percentage points.

Lear reported a net income of $204 million and adjusted net income of $226 million, compared to $76 million and $124 million, respectively, in the first quarter of 2020. The company reported earnings per share of $3.36 and adjusted earnings per share of $3.73, compared to $1.26 and $2.05, respectively, in the first quarter of 2020. That was higher than the Wall Street consensus estimates of $2.95 per share.

U.S. auto parts maker upped its full-year 2021 net sales forecasts in the range of $20.35 billion – $21.15 billion and adjusted EBITDA between $1.70 billion – $1.87 billion, up from $19.8 billion to $20.8 billion and $1.69 billion to $1.86 billion, respectively.

However, Lear shares traded 0.8% lower at $190.51 on Friday. The stock rose over 20% so far this year.

Lear Stock Price Forecast

Twelve analysts who offered stock ratings for Lear in the last three months forecast the average price in 12 months of $195.60 with a high forecast of $214.00 and a low forecast of $181.00.

The average price target represents a 2.16% increase from the last price of $191.46. Of those 12 analysts, seven rated “Buy”, five rated “Hold” while none rated “Sell”, according to Tipranks.

Morgan Stanley gave the base target price to $185 with a high of $270 under a bull scenario and $75 under the worst-case scenario. The firm gave an “Overweight” rating on the insurance company’s stock.

Several other analysts have also updated their stock outlook. Lear had its price target lifted by KeyCorp to $200 from $195. KeyCorp currently has an overweight rating on the auto parts company’s stock. Deutsche Bank lifted their target price to $165 from $150 and gave the stock a hold rating.

Analyst Comments

“We have an OW rating on LEA. The company’s ability to get additional CPV in both the Seating and E-Systems segments, for both ICE and BEV, should propel the stock in the coming years. Potential for investors to benefit from share appreciation, as well as the possible reinstatement of a dividend and share buybacks in 2021,” noted Adam Jonas, equity analyst at Morgan Stanley.

“Strong management team, a clean balance sheet, and strong FCF generation. LEA is well-positioned to be a secular beneficiary as they are powertrain agnostic in the Seating division and levered to EVs in E-Systems.”

Check out FX Empire’s earnings calendar

Cigna Shares Hit New Record High After Q1 Earnings; Target Price $300 in Best Case

Cigna, a global health service company, reported better-than-expected earnings in the first quarter and lifted its full-year 2021 profit and revenue outlook, sending shares to a record high on Friday.

The Bloomfield, Connecticut-based company said its total revenues in the first quarter were $41.0 billion, and adjusted revenues were $41.0 billion. Adjusted income from operations for the first quarter was $1.7 billion, or $4.73 per share, beating the Wall Street consensus estimates of $4.37 per share.

The U.S. health insurer raised full-year 2021 adjusted revenue to at least $166 billion, up from the previous projection of at least $165 billion. Cigna expects consolidated adjusted income from operations at least $7.0 billion, or at least $20.20 per share.

Following the upbeat results, Cigna shares hit an all-time of $263.38 on Friday. The stock rose over 26% so far this year.

Cigna Stock Price Forecast

Eleven analysts who offered stock ratings for Cigna in the last three months forecast the average price in 12 months of $275.90 with a high forecast of $300.00 and a low forecast of $254.00.

The average price target represents a 7.38% increase from the last price of $256.93. Of those 11 analysts, ten rated “Buy”, one rated “Hold” while none rated “Sell”, according to Tipranks.

Morgan Stanley gave the base target price to $254 with a high of $343 under a bull scenario and $143 under the worst-case scenario. The firm gave an “Overweight” rating on the insurance company’s stock.

Several other analysts have also updated their stock outlook. Truist Securities raised the price target to $300 from $280. Jefferies lifted the price objective to $295 from $268. CFRA upped the target price by $25 to $260. Bernstein increased the target price to $263 from $242. BMO lifted the target price to $290 from $270.

Analyst Comments

Cigna is the fourth largest commercial (8% share) and exchange (3% share) player. Acquisition of ESRX creates vertically integrated player with better ability to manage medical and pharmacy spend to drive significant savings for members,” noted Ricky Goldwasser, equity analyst at Morgan Stanley.

“Flexible balance sheet to deploy into M&A. Opportunity to upsell dental and vision ancillary services can help drive accelerated commercial penetration longer-term. Opportunity for further MA penetration remains as co. can cross-sell in areas it has a strong commercial presence.”

Check out FX Empire’s earnings calendar

Kellogg Shares Soar on Q1 Earnings Beat and Raised Outlook

Kellogg shares rose over 8% on Thursday after the leading worldwide manufacturer and marketer of ready-to-eat cereals, reported better-than-expected earnings and revenue in the first quarter and lifted the fiscal year 2021 guidance.

The U.S. second-largest biscuit maker reported net sales rose over 5% to $3.58 billion in the quarter ended April 3, up from $3.41 billion seen in the same period a year ago. That was higher than the Wall Street consensus estimates of $3.38 billion.

The Battle Creek, Michigan-based company said its diluted earnings per share rose over 12% to $1.11, beating analysts’ expectations of $0.95 per share.

Kellogg forecasts sales growth to finish 2021 nearly flat year-on-year, an improvement from the previous expectations of about a 1% decline. Adjusted earnings per share is expected to increase by nearly 1% to 2%, up from the previous forecast of a 1% rise.

Following the upbeat results, Kellogg shares rose as high as 8% to $68.14 on Thursday. The stock rose over 8% so far this year.

Analyst Comments

“We expect a positive stock reaction to Kellogg’s large Q1 topline/profit/EPS beat, despite the cycling of solid topline growth in 1Q20, along with slightly raised FY21 guidance. While the magnitude of the FY21 raise was small (organic sales +100 bps, OP/EPS growth +50 bps), it was unexpected as there were concerns about lower or lower-quality FY guidance with commodity pressure,” noted Dara Mohsenian, equity analyst at Morgan Stanley.

Kellogg Stock Price Forecast

Five analysts who offered stock ratings for Kellogg in the last three months forecast the average price in 12 months of $66.00 with a high forecast of $72.00 and a low forecast of $60.00.

The average price target represents a -2.73% decrease from the last price of $67.85. Of those five analysts, two rated “Buy”, three rated “Hold” while none rated “Sell”, according to Tipranks.

Morgan Stanley gave the base target price to $60 with a high of $71 under a bull scenario and $43 under the worst-case scenario. The firm gave an “Equal-weight” rating on the food manufacturing company’s stock.

Several other analysts have also updated their stock outlook. Kellogg had its price target cut by Deutsche Bank to $70 from $75. They currently have a buy rating on the stock. Citigroup reduced their price objective to $72 from $75. Jefferies Financial Group dropped their target price to $65 from $69 and set a hold rating. Piper Sandler lowered Kellogg from an overweight rating to a neutral rating and dropped their target price to $66 from $76.

Upside and Downside Risks

Risks to Upside: Higher US snacks growth on reinvestment/innovation, stabilized US cereal business with innovation and higher ad spend, higher-margin expansion on greater cost savings and moderate commodities – highlighted by Morgan Stanley.

Risks to Downside: Pricing pressure in the US (65% of sales) with retailer friction, COVID-related supply chain disruptions in 2020, lower operating profit growth on higher reinvestment needs and cost pressure.

Check out FX Empire’s earnings calendar

MetLife Shares Hit New Record High After Strong Q1 Earnings; Target Price $72 in Best Case

MetLife, one of the largest life insurers in the world, reported better-than-expected earnings in the first quarter of 2021 and said the worst impact of the COVID-19 pandemic was behind, sending shares to a record high on Wednesday.

The New York-based insurer reported net income of $290 million, or $0.33 per share, compared to net income of $4.4 billion, or $4.75 per share, in the first quarter of 2020. Adjusted earnings rose to $2.0 billion, or $2.20 per share, up from adjusted earnings of $1.4 billion, or $1.58 per share, seen in the same period a year ago. That beat the Wall Street consensus estimates of $1.48 per share.

“In the quarter, we were very pleased to return approximately $1.4 billion to shareholders through share repurchases and common stock dividends. We believe the worst impact of the pandemic on our business performance is behind us, and we are well-positioned to create additional value for our stakeholders in the future,” said MetLife President and CEO Michel Khalaf.

The leader of life insurance company said its net investment income rose 74% to $5.3 billion, largely driven by increases in the estimated fair value of certain securities that do not qualify as separate accounts under GAAP and higher variable investment income primarily due to higher private equity returns.

Following the upbeat results, MetLife shares hit an all-time of $65.905 on Wednesday. The stock rose over 39% so far this year.

Analyst Comments

“This quarter’s results clearly received an outsized benefit from strong alternative results, but what impresses us more is the stability and growth in underlying earnings, which should help in our view to drive further upside in the stock,” noted Nigel Dally, equity analyst at Morgan Stanley.

“Operating EPS was $2.20, considerably above both our estimate and the consensus of $1.53. Favorable marks on alternative investments provided more of a boost than expected, contributing over $1 billion to pre-tax earnings above a normal level. Conversely, pandemic-related claims weighed on some divisions, most notably its domestic group insurance operations. Excluding these items, we view the core earnings run-rate potential of the company as being largely in-line with prior expectations.”

MetLife Stock Price Forecast

Nine analysts who offered stock ratings for MetLife in the last three months forecast the average price in 12 months of $66.11 with a high forecast of $72.00 and a low forecast of $54.00.

The average price target represents a 1.07% increase from the last price of $65.41. Of those nine analysts, eight rated “Buy”, one rated “Hold” while none rated “Sell”, according to Tipranks.

Morgan Stanley raised the base target price to $72 from $70 with a high of $83 under a bull scenario and $48 under the worst-case scenario. The firm gave an “Overweight” rating on the life insurer’s stock.

“Following its retail separation, the company is committed to profitable growth while also simplify its operations to reduce earnings volatility. The company also de-risked its investment portfolio somewhat. Given these moves, the investment thesis for MetLife now revolves around capital management and free cash flow generation, growth in international operations, and expense reduction initiatives,” Morgan Stanley’s Dally added.

“We believe MetLife has the ability to continue its solid execution in its various businesses. More importantly, the solid results over the past several quarters were not driven by a single division, with all segments contributing to earnings growth to a certain extent.”

Several other analysts have also updated their stock outlook. JP Morgan raised the stock price forecast to $66 from $64. UBS initiated with a buy rating and a $72 target price. KBW upped the price target to $68 from $64. Piper Sandler lifted the price objective to $68 from $58. Evercore ISI increased the price target to $65 from $52. RBC raised the target price to $66 from $57.

Check out FX Empire’s earnings calendar

U.S. Hotel Operator Hilton’s Shares Slump as Q1 Earnings Disappoint

Hilton Worldwide Holdings, one of the largest and fastest-growing hospitality companies in the world, reported lower-than-expected earnings in the first quarter of 2021 as a resurgence in COVID-19 cases and tightening travel restrictions hurt bookings, sending its shares down about 4% on Wednesday.

The company, which has more than 4,000 hotels, resorts and timeshare properties comprising more than 650,000 rooms in 90 countries and territories, reported earnings per share, on an adjusted basis, of $0.02, missing the Wall Street’s consensus estimates of $0.05 per share.

Hilton said its net loss was $109 million for the first quarter and adjusted EBITDA was $198 million for the first quarter. System-wide comparable RevPAR fell 38.4% on a currency-neutral basis for the first quarter from the same period in 2020.

Following the disappointing results, Hilton shares fell about 4% to $124.54 on Wednesday. The stock rose over 12% so far this year.

Hilton Stock Price Forecast

Eight analysts who offered stock ratings for Hilton in the last three months forecast the average price in 12 months of $120.75 with a high forecast of $145.00 and a low forecast of $104.00.

The average price target represents a -3.18% decrease from the last price of $124.71. Of those eight analysts, three rated “Buy”, five rated “Hold” while none rated “Sell”, according to Tipranks.

Morgan Stanley gave the base target price of $101 with a high of $141 under a bull scenario and $56 under the worst-case scenario. The firm gave an “Equal-weight” rating on the hospitality company’s stock.

Several other analysts have also updated their stock outlook. Hilton Worldwide had its price objective hoisted by Truist Securities to $114 from $106. Truist Securities currently has a hold rating on the stock. Raymond James raised their target price to $125 from $105 and gave the stock an outperform rating. Gordon Haskett upped their price target to $114 from $97 and gave the company a hold rating.

Analyst Comments

“The spread of coronavirus will pressure RevPAR growth, unit growth, and non-room fee growth. Strong mgmt team with a track record of creating value for owners. We see a wide risk-reward that will depend on the severity and speed of recovery from COVID-19,” noted Thomas Allen, equity analyst at Morgan Stanley.

“We think HLT is well placed from a liquidity standpoint, but its ability to repurchase stock medium-term may be impaired.”

Check out FX Empire’s earnings calendar

Hyatt Hotels Post Deeper Loss in Q1, Shares Fall

Hyatt Hotels Corporation, a leading global hospitality company, reported a bigger-than-expected loss for the fifth consecutive time in the first quarter of this year, reflecting the impact of the COVID-19 pandemic and worldwide travel restrictions.

The U.S. hotel operator said its net loss attributable was $304 million, or $2.99 per diluted share, in the quarter ended March 31, 2021, compared to a net loss attributable to Hyatt of $103 million, or $1.02 per diluted share, in the first quarter of 2020.

Adjusted net loss attributable was $363 million, or $3.57 per diluted share, in the first quarter of 2021, compared to Adjusted net loss attributable to Hyatt of $35 million, or $0.35 per diluted share, in the first quarter of 2020. That was worse than Wall Street’s consensus estimates of -$1.33 per share.

The Chicago-based company said its comparable owned and leased hotels RevPAR decreased 64.4% compared to the first quarter of 2020.

Following the disappointing results, Hyatt shares fell 1.56% to $80.68 on Tuesday. The stock rose over 8% so far this year.

Analyst Comments

“Expect a positive reaction to Hyatt’s (H) 1Q21 beat. Rising trends in the United States and the greater China region, which drove outperformance, are likely to accelerate through 2022 while Europe has been a laggard on vaccine distribution. What remains is an acceleration in urban, business transient and group business, which could provide another phase of the recovery,” noted David Katz, equity analyst at Jefferies.

Hyatt Stock Price Forecast

Eleven analysts who offered stock ratings for Hyatt in the last three months forecast the average price in 12 months of $60.00 with a high forecast of $71.00 and a low forecast of $52.00.

The average price target represents a 7.50% increase from the last price of $55.82. Of those 11 analysts, eight rated “Buy”, three rated “Hold” while none rated “Sell”, according to Tipranks.

Morgan Stanley gave the base target price of $61 with a high of $107 under a bull scenario and $31 under the worst-case scenario. The firm gave an “Equal-weight” rating on the hospitality company’s stock.

“Higher owned exposure suggests risk given the spread of COVID-19 and greater operating leverage. However, Hyatt has lower financial leverage than peers. Higher exposure to increasing new supply and alternative accommodations given more gateway city exposure than peers (e.g., 8% NYC exposure vs. MAR 4% and HLT 3%) puts RevPAR growth at risk,” noted Thomas Allen, equity analyst at Morgan Stanley.

“Potential ability to monetize assets at attractive multiples could create value. Limited float / large insider ownership means constant discount, despite attractive M+F business.”

Several other analysts have also updated their stock outlook. BofA Global Research raised the price objective to $85 from $80. Evercore ISI lifted the target price to $95 from $90. Citigroup increased the price target to $90 from $80. Baird upped the target price to $72 from $63. Jefferies raised the target price to $85 from $75.

Check out FX Empire’s earnings calendar

Investment Firm KKR Tops Earnings Estimates; Target Price $60

U.S.-based investment firm KKR & Co reported better-than-expected earnings in the first quarter of 2021, largely driven by a higher level of carried interest and an increase in transaction and management fees.

The company that manages multiple alternative asset classes said its after-tax distributable earnings rose 63% year-over-year to $660 million, or adjusted $0.75 per share, up from $406.3 million seen in the same period a year ago. That was higher than Wall Street’s expectations of $0.62 per share.

The company, which was formerly known as Kohlberg Kravis Roberts & Co, said its Assets Under Management (AUM) increased to $367 billion, up 77% year-over-year, with $15 billion of organic new capital raised in the quarter and $51 billion for the LTM period. The acquisition of Global Atlantic contributed $98 billion in 1Q’21.

KKR shares surged more than 38% so far this year. At the time of writing, the stock traded nearly flat at $56.09.

Analyst Comments

“Fee-related earnings of $364M compared to 1Q20 of $258M with transaction fees of $166M vs $98M y/y. The performance fee business recorded +$61M net of compensation which compared to +$138M in the prior-year period. Investment income, which reflects the balance sheet activities, totaled $392M vs. $128M in 1Q20. Ultimately, KKR generated +$660M of after-tax distributable earnings ($0.75/share) and declared a $0.145 dividend in the quarter,” noted Gerald E. O’Hara, equity analyst at Jefferies.

KKR Stock Price Forecast

Eleven analysts who offered stock ratings for KKR in the last three months forecast the average price in 12 months of $60.00 with a high forecast of $71.00 and a low forecast of $52.00.

The average price target represents a 7.50% increase from the last price of $55.82. Of those 11 analysts, eight rated “Buy”, three rated “Hold” while none rated “Sell”, according to Tipranks.

Morgan Stanley gave the base target price of $60 with a high of $92 under a bull scenario and $22 under the worst-case scenario. The firm gave an “Equal-weight” rating on the investment firm’s stock.

Several other analysts have also updated their stock outlook. KKR & Co. Inc. had its price objective lifted by Deutsche Bank to $52 from $47. They currently have a hold rating on the asset manager’s stock. BMO Capital Markets boosted their target price to $71 from $69. Credit Suisse Group boosted their target price to $60 from $53 and gave the company a neutral rating.

Analyst Comments

“Strong near-term growth with fundraising supercycle and GA accretion coming into earnings, but we see this reflected in the price at the current valuation for a more capital-intensive business model,” noted Michael Cyprys, equity analyst at Morgan Stanley.

“While strong investment performance could drive upward estimate revisions, we have less visibility on more episodic investment income gains. Mgmt’s increased focus on expanding the platform with adjacent strategies and scaling successor funds should drive higher fee-related earnings (FRE).”

Upside and Downside Risks

Risks to Upside: 1) Faster deployment with greater opportunity set. 2) Accelerated portfolio exit activity. 3) Stronger fundraising boosted by seeding of new strategies. 4) Large Insurance M&A – highlighted by Morgan Stanley.

Risks to Downside: 1) Volatile markets leading to weaker investment returns, balance sheet markdowns and delays harvesting of investments pressuring earnings. 2) Increased political and regulatory scrutiny of PE business model.

Check out FX Empire’s earnings calendar

Diamondback Shares Gain as Q1 Profits Top Estimates; Target Price $96

Diamondback Energy shares rose about 3% on Monday after the oil and natural gas company reported better-than-expected profits in the first quarter of 2021 as the rollout of COVID-19 vaccines fueled hopes of restrictions being eased, boosting fuel demand.

The Midland, Texas-based company said its net income was $220 million, or $1.33 per diluted share. The adjusted net income was $379 million, or $2.30 per diluted share. That was higher than the Wall Street consensus estimates of $1.89 per share.

The company said its first-quarter 2021 consolidated adjusted EBITDA was $845 million. Adjusted EBITDA net of non-controlling interest was $836 million. Diamondback also declared a cash dividend of $0.40 per common share.

Diamondback Energy shares rose about 3% to $83.92 on Monday. The stock surged more than 70% so far this year.

Analyst Comments

Diamondback Energy’s (FANG) 1Q was largely pre-released though 8% lower unit costs drove a 13% EBITDA beat and capex was in line. DCPS missed by -9% due to deriv proceeds that flowed through CFF and merger expenses. Notably, FANG sold QEP’s Bakken for $745m, 20% above our est and will accelerate debt paydown. FY21 production guidance was adjusted for asset sales but otherwise reiterated,” noted David Deckelbaum, equity analyst at Cowen.

Diamondback Stock Price Forecast

Eighteen analysts who offered stock ratings for Diamondback in the last three months forecast the average price in 12 months of $96.47 with a high forecast of $115.00 and a low forecast of $82.00.

The average price target represents an 18.03% increase from the last price of $81.73. Of those 18 analysts, 14 rated “Buy”, four rated “Hold” while none rated “Sell”, according to Tipranks.

Morgan Stanley gave the base target price of $107 with a high of $141 under a bull scenario and $61 under the worst-case scenario. The firm gave an “Overweight” rating on the oil and natural gas company’s stock.

“Low cost of supply relative to peers. Pre-dividend breakeven of $23/bbl WTI (pro-forma) is among the lowest in our coverage after 2020 well cost reductions of >20% with peer-leading operating costs. In a higher price environment FANG can deliver outsized cash returns, while at low oil prices downside is tempered by low breakevens,” noted Devin McDermott, equity analyst at Morgan Stanley.

“Line of sight to leverage reduction. We project net debt/EBITDA decreasing from 2.5x at the end of 2020 to 2.2x by the end of 2021 and 1.9x in 2022.  Recent acquisitions and reduced growth rate should address investors’ inventory concerns. Concerns around inventory should begin to subside after recent acquisitions assuming low single digits long-term growth rate.”

Several other analysts have also updated their stock outlook. Diamondback Energy had its price target upped by research analysts at Roth Capital to $115 from $84. The brokerage currently has a “buy” rating on the oil and natural gas company’s stock. Mizuho lifted their price target to $101 from $92 and gave the company a “buy” rating. Siebert Williams Shank reaffirmed a “buy” rating and issued an $89 price target.

Check out FX Empire’s earnings calendar

General Motors Could Hit New All-Time High on Strong Q1 Earnings; Target Price $69

General Motors, the largest US-based automaker, is expected to report its first-quarter earnings of $1.02 per share, which represents year-over-year growth of over 64% from $0.62 per share seen in the same quarter a year ago.

The Detroit, Michigan-based company would post revenue growth of about 2% to around $33.3 billion.

General Motors’s better-than-expected results, which will be announced on Wednesday, May 5, would help the stock hit new all-time highs. General Motors shares rose over 37% so far this year. The stock traded nearly flat at $57.35 on Monday.

General Motors Stock Price Forecast

Twelve analysts who offered stock ratings for General Motors in the last three months forecast the average price in 12 months of $69.42 with a high forecast of $85.00 and a low forecast of $62.00.

The average price target represents a 20.81% increase from the last price of $57.46. Of those 12 analysts, 11 rated “Buy”, one rated “Hold” while none rated “Sell”, according to Tipranks.

Morgan Stanley gave the base target price of $80 with a high of $120 under a bull scenario and $32 under the worst-case scenario. The firm gave an “Overweight” rating on the auto manufacturer’s stock.

Several other analysts have also updated their stock outlook. Credit Suisse raised the target price to $72 from $68. BofA lifted the price objective to $80 from $72. UBS increased the target price to $75 from $50. Daiwa Capital Markets upped the price target to $67 from $60. Jefferies raised the target price to $62 from $50.

Analyst Comments

“We are OW 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,” noted Adam Jonas, 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.”

Check out FX Empire’s earnings calendar

Restaurant Brands Tops Q1 Earnings Estimates; Target Price $80 in Best Case

Restaurant Brands International, a global multi-brand franchisor of fast-food restaurants, reported better-than-expected earnings in the first quarter of 2021 and the CEO signaled that the company returned to growth after the COVID-19 slowdown, sending its shares up about 1.2% on Friday.

The parent company of Burger King and Popeye reported quarterly earnings of $0.55 per share during the quarter ended March 31, 2021, beating the Wall Street consensus estimates of $0.50 per share, also, up from $0.48 per share seen in the same period a year ago. Restaurant Brands’ revenues rose about 1% to $1.26 billion.

The company said, as of the end of March 2021, 95% of our restaurants were open worldwide, including substantially all of our restaurants in North America and the Asia Pacific and approximately 92% and 84% of our restaurants in Europe, the Middle East, and Africa and Latin America, respectively.

The U.S.-listed Restaurant Brands shares rose 1.2% to $68.61 on Monday.

“Our first-quarter results signal our return to growth with system-wide sales surpassing Q1 2019 and net restaurant growth nearly matching our best-ever Q1 performance in 2018.  We are excited by the global growth potential of our brands and are encouraged by this early momentum as we work toward a return to historic levels of unit growth this year,” said José E. Cil, Chief Executive Officer of Restaurant Brands.

Analyst Comments

“A relatively in line quarter on top and bottom line, with the hoped-for recovery of Tim’s delayed by new restrictions in Canada. BK strong, esp in the US, but lags other QSRs that have reported thus far. Encouraging data points on digital, unit development. Numbers up modestly, price target to $70,” said John Glass, equity analyst at Morgan Stanley.

“Multi-brand platform QSR operator with a global network of master franchisees. The ability to grow multiple brands through master franchisees is a strategic advantage and drives solid unit growth. Asset lite franchised business model, Lower G&A/capex drive FCF though more spending may be needed as peers ramp investment. Comp-store sales variable. Burger King US and Tim’s have lagged some peers and have room to improve, though we see fewer catalysts beyond easy compares in ’21. Valuation attractive based on FCF and history, though gap to peers has persisted and QSR is not unique in trading at a discount to history among peers.”

Restaurant Brands Stock Price Forecast

Sixteen analysts who offered stock ratings for Restaurant Brands in the last three months forecast the average price in 12 months of $70.14 with a high forecast of $80.00 and a low forecast of $61.00.

The average price target represents a 2.23% increase from the last price of $68.61. Of those 16 analysts, 11 rated “Buy”, five rated “Hold” while none rated “Sell”, according to Tipranks.

Morgan Stanley gave the base target price of $70 with a high of $92 under a bull scenario and $48 under the worst-case scenario. The firm gave an “Equal-weight” rating on the fast-food holding company’s stock.

Several other analysts have also updated their stock outlook. Stifel raised the target price to $75 from $70. UBS lifted the target price to $74 from $71. Citigroup issued a buy rating and a $74.00 target price on the stock. BMO Capital Markets lifted their price objective to $71 from $66.

“We view shares as fairly valued trading in-line on an FY2 EV/EBITDA basis relative to global, highly franchised peers DPZ, MCD and YUM. Indeed, over the last 5 years, shares have traded in-line with peers while over the last 3 years, shares have traded at an 8% discount. We nudge our price target to $68 from $65, predicated on shares’ 17x FY2 EV/EBITDA multiple sustaining,” noted Andrew M. Charles, equity analyst at Cowen.

Check out FX Empire’s earnings calendar

Earnings to Watch Next Week: ON Semiconductor, Ferrari, General Motors and Moderna in Focus

Earnings Calendar For The Week Of May 3

Monday (May 3)

IN THE SPOTLIGHT: ON SEMICONDUCTOR

ON Semiconductor, a semiconductors supplier company, is expected to report its first-quarter earnings of $0.34 per share, which represents year-over-year growth of over 240% from $0.10 per share seen in the same quarter a year ago.

The Phoenix, Arizona-based company’s revenue would grow over 14% to $1.4 billion.

“The company is the only one in our coverage to see weaker gross margins cycle to cycle. Notably, this is happening despite an improvement in end-market mix toward industrial and autos and away from consumer and computing, where ON has become more selective in recent quarters,” noted Craig Hettenbach, equity analyst at Morgan Stanley.

“We like the message from the new CEO of improving mix of the business but think this has already been reflected in meaningful multiple expansion in the stock. Another thing to consider is the potential for lost revenue as the company deemphasizes some products.”

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

Ticker Company EPS Forecast
ENBL Enable Midstream Partners $0.17
EL Estée Lauder $1.28
WEC Wisconsin Energy $1.47
EPD Enterprise Products Partners $0.50
ON ON Semiconductor $0.34
ITRI Itron $0.40
ALXN Alexion Pharmaceuticals $3.08
L Loews $0.95
CNA CNA Financial $0.95
EPRT Essential Properties Realty Trust Inc $0.29
VRNS Varonis Systems -$0.13
QGEN Qiagen $0.63
RMBS Rambus $0.28
WWD Woodward $0.82
REGI Renewable Energy $0.20
IRBT Irobot $0.06
SCI Service International $0.98
ITUB Itau Unibanco $0.12
FN Fabrinet $1.15
CAR Avis Budget -$2.38
JKHY Jack Henry Associates $0.86
O Realty Ome $0.85
BRX Brixmor Property $0.40
UE Urban Edge Properties $0.22
AWK American Water Works $0.73
NSP Insperity $1.56
APO Apollo Global Management $0.59
RBC Regal Beloit Corporation $1.68
ADC Agree Realty $0.83
CR Crane $1.31
OGS One Gas $1.78
CHGG Chegg $0.31
CVI CVR Energy -$1.23
OHI Omega Healthcare Investors $0.82
XPO XPO Logistics $0.93
FLS Flowserve $0.20
CBT Cabot $0.97
LEG Leggett & Platt $0.41
FANG Diamondback Energy $1.89
SHO Sunstone Hotel Investors -$0.15
KMT Kennametal $0.21
SEDG Solaredge Technologies Inc $1.01
VNO Vornado Realty $0.63
WMB Williams Companies $0.28
AWR American States Water $0.48
MWA Mueller Water Products $0.14
MOS Mosaic $0.50
CC Chemours Co $0.68
LGND Ligand Pharmaceuticals $1.05
CORT Corcept Therapeutics $0.21
CIB Bancolombia $0.34
SANM Sanmina $0.82
EGOV NIC $0.24
AMG Affiliated Managers $4.24

Tuesday (May 4)

IN THE SPOTLIGHT: FERRARI

Ferrari, an Italian luxury sports car manufacturer, is expected to report its first-quarter earnings of $1.26 per share, which represents year-over-year growth of over 27% from $0.99 per share seen in the same quarter a year ago.

The company which is known for its prancing horse logo would post revenue growth of more than 24% to around $1.27 billion

“We find the long-term stability of Ferrari’s revenue, addressable market growth, expansive profit margin, and solid returns on invested capital throughout economic cycles to be compelling reasons to invest at the right price,” noted Richard Hilgert, senior equity analyst at Morningstar.

“Because of its exclusive clientele of high-net-worth individuals, we believe the company will show resiliency during periods of economic uncertainty, such is currently the case with the coronavirus pandemic. While we are not entirely averse to paying up for stocks like Ferrari that possess a wide economic moat and stable economic profits through business cycles, we think Ferrari stock will regularly trade at rich, luxury goods valuation multiples.”

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

Ticker Company EPS Forecast
ARNC Arconic Inc $0.29
CMI Cummins $3.46
CVS CVS Health $1.71
MPLX MPLX $0.61
PFE Pfizer $0.79
SYY Sysco $0.20
TRI Thomson Reuters USA $0.40
MPC Marathon Petroleum -$0.72
NS NuStar Energy $0.28
BR Broadridge Financial Solutions $1.67
ETRN Equitrans Midstream Corp $0.19
DD DuPont $0.77
LDOS Leidos $1.49
D Dominion Resources $1.08
EXPD Expeditors International Of Washington $1.00
RACE Ferrari $1.26
LPX Louisiana Pacific $2.67
CVLT Commvault Systems $0.49
ZBH ZIMMER BIOMET HDG. $1.51
UAA Under Armour Inc $0.04
XYL Xylem $0.37
UA Under Armour C share $0.04
INGR Ingredion $1.62
SEE Sealed Air $0.71
INCY YTE $0.65
BERY Berry Plastics $1.31
LGIH LGI Homes $2.37
BG Bunge $1.55
PCRX Pacira $0.58
RGEN Repligen $0.43
VSH Vishay Intertechnology $0.45
LANC Lancaster Colony $1.26
CTLT Catalent $0.76
KKR KKR & Co LP $0.62
CWH Camping World Holdings $0.54
RHP Ryman Hospitality Properties -$0.78
AME Ametek $1.02
WLK Westlake Chemical $1.56
IAA IAA Inc $0.46
VMC Vulcan Materials $0.41
GPN Global Payments $1.77
IPGP IPG Photonics $1.07
HSIC Henry Schein $0.83
IT Gartner $1.01
CRL Charles River Laboratories $2.19
HEP Holly Energy Partners $0.48
NXST Nexstar Broadcasting $3.11
MLM Martin Marietta Materials $0.51
LAMR Lamar Advertising $1.17
IDXX Idexx Laboratories $1.72
FSS Federal Signal $0.33
MIC Macquarie Infrastructure $0.48
NNN National Retail Properties $0.64
SABR Sabre -$0.51
MYGN Myriad Genetics -$0.10
BEN Franklin Resources $0.74
ZBRA Zebra Technologies $4.41
COP ConocoPhillips $0.57
ETN Eaton $1.25
HI Hillenbrand $0.92
CMP Compass Minerals International $0.72
VRSK Verisk Analytics $1.25
JBGS JBG SMITH Properties $0.31
LYFT Lyft Inc -$0.54
AMCR Amcor PLC $0.18
LSI LIFE STORAGE $1.01
STAG STAG Industrial $0.48
XP XP Inc $0.20
RPAI Retail Properties Of America $0.20
OUT Outfront Media -$0.17
MANT ManTech International $0.83
MED Medifast $2.72
PAYC Paycom Software $1.42
AKAM Akamai $1.30
LSCC Lattice Semiconductor $0.19
ARWR Arrowhead Research $0.34
AFG American Financial $1.74
TTEC TeleTech $1.00
ANET Arista Networks $2.38
GMED Globus Medical $0.36
INSP Inspire Medical Systems Inc -$0.65
ENLC EnLink Midstream -$0.02
IOSP Innospec $1.02
PVG Pretium Resources $0.21
HLF Herbalife $1.06
RDN Radian $0.67
TMUS T-Mobile Us $0.53
ESE ESCO Technologies $0.55
HST Host Hotels & Resorts -$0.15
PKI PerkinElmer $3.03
BKH Black Hills $1.60
ATVI Activision Blizzard $0.69
XLNX Xilinx $0.75
WTS Watts Water Technologies $0.98
AMRC Ameresco $0.10
CZR Caesars Entertainment -$1.77
MCY Mercury General $1.25
MRCY Mercury Systems $0.63
CPK Chesapeake Utilities $1.83
AIZ Assurant $1.96
LPSN LivePerson -$0.14
DOOR Masonite International $1.78
PXD Pioneer Natural Resources $1.82
EQC Equity Commonwealth $0.01
PEAK Healthpeak Properties Inc $0.39
DVN Devon Energy $0.35
RNG RingCentral $0.25
EPAY Bottomline Technologies $0.27
MTCH Match Group $0.46
JAZZ Jazz Pharmaceuticals $3.69
PRU Prudential Financial $2.68
NMIH NMI $0.59
DLB Dolby Laboratories $0.67
HASI Hannon Armstrong Sustnbl Infrstr Cap $0.40
MPWR Monolithic Power Systems $1.33
H Hyatt Hotels -$1.33
WU Western Union $0.45
DEI Douglas Emmett $0.43
EXAS Exact Sciences -$1.04
ALGT Allegiant Travel -$2.59
PTCT PTC Therapeutics -$1.59
Z Zillow $0.26
NRZ New Residential Investment $0.34
LITE Lumentum Holdings Inc $1.42
SU Suncor Energy USA $0.44
MELI MercadoLibre $0.40
HAE Haemonetics $0.67
TDG TransDigm $2.52
IOVA Iovance Biotherapeutics -$0.48
QTRX Quanterix -$0.32
VST Victory Square Tech -$2.04
GRFS Grifolsbarcelona $0.23
BBD Banco Bradesco $0.11
CHT Chunghwa Telecom $0.33

Wednesday (May 5)

IN THE SPOTLIGHT: GENERAL MOTORS

The auto manufacturer is expected to report its first-quarter earnings of $1.02 per share, which represents year-over-year growth of over 64% from $0.62 per share seen in the same quarter a year ago. The Detroit, Michigan-based company would post revenue growth of about 2% to around $33.3 billion.

“We are Overweight based on GM’s 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,” noted Adam Jonas, 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.”

TAKE A LOOK AT OUR EARNINGS CALENDAR FOR THE FULL RELEASES FOR THE MAY 5

Ticker Company EPS Forecast
UTHR United Therapeutics $2.60
HLT Hilton Worldwide $0.05
PNW Pinnacle West Capital $0.28
CERN Cerner $0.74
HFC HollyFrontier -$0.45
ODP Office Depot $1.02
AEIS Advanced Energy Industries $1.27
OMI Owens Minor $0.97
DNB Dun & Bradstreet $0.21
SMG Scotts Miracle-Gro $5.51
DOC Physicians Realty $0.27
WRK WESTROCK $0.62
GOLD Randgold Resources $0.26
TT Trane Technologies PLC $0.62
CIM Chimera Investment $0.31
SRE Sempra Energy $2.60
NYT New York Times $0.15
AVA Avista $0.85
ROCK Gibraltar Industries $0.61
SPR Spirit AeroSystems -$0.93
PEG Public Service $1.12
BWA Borgwarner $0.92
GM General Motors $1.02
JLL Jones Lang LaSalle $0.58
SBGI Sinclair -$2.18
EMR Emerson Electric $0.90
NI NiSource $0.77
ABC AmerisourceBergen $2.50
BRKR Bruker $0.32
FUN Cedar Fair -$1.89
IONS Ionis Pharmaceuticals -$0.47
EXC Exelon $0.42
WAT Waters $1.57
CDW CDW $1.54
CRTO Criteo $0.50
CLH Clean Harbors $0.26
HZNP Horizon Pharma $0.19
SPWR SunPower $0.00
FLEX Flextronics International $0.36
BKNG Booking Holdings Inc -$7.26
QLYS Qualys $0.69
ATO Atmos Energy $2.05
ALL Allstate $3.85
GIL Gildan Activewear USA $0.20
KLIC Kulicke And Soffa Industries $1.20
PTVE Pactiv Evergreen $0.03
LNC Lincoln National $1.48
TTGT TechTarget $0.37
RLJ RLJ Lodging -$0.26
ADPT Adeptus Health -$0.41
PRI Primerica $2.38
ZNGA Zynga $0.09
UNM Unum $1.01
HPP Hudson Pacific Properties $0.46
RUN Sunrun Inc -$0.03
WTRG Essential Utilities Inc $0.66
EPR EPR Properties $0.44
FLT Fleetcor Technologies $2.70
QRVO Qorvo $2.44
UGI UGI $1.72
CDAY Ceridian HCM Holding Inc $0.09
CW Curtiss-Wright $1.30
FMC FMC $1.52
CTSH Cognizant Technology Solutions $0.94
SIMO Silicon Motion Technology $0.94
AEL American Equity Investment Life $0.59
ANSS Ansys $0.85
MET MetLife $1.48
XEC Cimarex Energy $1.70
VAC Marriottacations Worldwide -$0.29
SRC Spirit Realty Capital New $0.73
TNDM Tandem Diabetes Care -$0.15
SJI South Jersey Industries $1.19
EQT EQT $0.28
ETSY ETSY Inc $0.84
MFC Manulife Financial USA $0.59
NBIX Neurocrine Biosciences $0.46
CCMP Cabot Microelectronics $1.94
EQH AXA Equitable Holdings Inc $1.23
MRO Marathon Oil $0.14
CF CF Industries $0.57
STN Stantec USA $0.42
RYN Rayonier $0.08
RSG Republic Services $0.86
FRT Federal Realty Investment $1.02
PDCE PDC Energy $0.83
PYPL PayPal $1.01
BFAM Bright Horizons Family Solutions $0.10
BE Bloom Energy Corp -$0.08
LBTYA Liberty Global Class A Ordinary Shares $0.09
HR Healthcare Realty $0.42
MTG MGIC Investment $0.42
NUVA NuVasive $0.33
ALB Albemarle $0.79
STAA STAAR Surgical $0.02
CPA Copa -$2.21
NUS Nu Skin Enterprises $0.72
TWO Two Harbors Investment $0.21
ACAD Acadia Pharmaceuticals -$0.54
RCII Rent-A-Center $1.11
LOPE Grand Canyon Education $1.67
ORA Ormat Technologies $0.40
KW Kennedy Wilson $0.27
LHCG LHC $1.26
SLF Sun Life Financial USA $1.08
FOXA Twenty-First Century Fox $0.57
FNV Franco Nevada $0.79
QTWO Q2 $0.07
UBER Uber -$0.56
SBRA Sabra Health Care Reit $0.40
RKT Rocket Cos. Inc. $0.89
MDU MDU Resources $0.20
TRMB Trimble Navigation $0.56
GDOT Green Dot $0.93
APA Apache $0.69
HUBG HUB $0.46
KAI Kadant $1.36
SBH Sally Beauty $0.16
BCH Banco De Chile $0.40
DAR Darling Ingredients $0.56
RARE Ultragenyx Pharmaceutical -$1.25
TRNO Terreno Realty $0.39
CCU Compania Cervecerias Unidas $0.32
CENTA Central Garden Pet $1.08
RCKT Rocket Pharma -$0.77
CUB Cubic $0.41
AVNS Avanos Medical Inc $0.18
FMS Fresenius Medical Care $0.45
UGP Ultrapar Participacoes $0.04
ELP Companhia Paranaense De Energia $0.03
LBTYK LIBERTY GLOBAL $0.09
FOX Twenty First Century Fox $0.58
NVO Novo Nordisk A Fs $0.79
BAK Braskem $1.38
AEBZY Anadolu Efes ADR $0.01
OMVJF OMV $0.97
SRPT Sarepta Therapeutics -$2.01
VIV Telefonica Brasil $0.13
ES Eversource Energy $1.10
GBT BMTC Group -$1.02

Thursday (May 6)

IN THE SPOTLIGHT: MODERNA

Moderna Inc, an American biotech company focused on drug discovery, is expected to report its first-quarter earnings of $2.36 per share, up about 700% from the same quarter a year ago. The Massachusetts-based biotechnology company’s revenue would surge to $1.97 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 MAY 6

Ticker Company EPS Forecast
PZZA Papa John’s International $0.55
AY Atlantica Yield -$0.13
SUN Sunoco $0.69
TECH Bio Techne $1.50
ZTS Zoetis $1.04
EPAM EPAM Systems $1.69
APTV Aptiv PLC $0.77
MGA Magna International USA $1.59
VER VEREIT $0.78
WCC Wesco International $0.76
BUD Anheuser-Busch $0.48
IRM Iron Mountain $0.64
LIN Linde PLC $2.26
BDX Becton, Dickinson and Co. $3.04
AES AES $0.31
BLD TopBuild Corp $1.93
HWM Howmet Aerospace Inc $0.20
BIP Brookfield Infrastructure $0.87
PENN Penn National Gaming $0.28
K Kellogg $0.95
PWR Quanta Services $0.74
BLL Ball $0.67
STWD Starwood Property $0.51
SEAS SeaWorld Entertainment -$0.83
CNP CenterPoint Energy $0.50
ALE Allete $1.11
WD Walker & Dunlop $2.01
COMM CommScope $0.31
PRLB Proto Labs $0.37
VG Vonage $0.05
AMRS Amyris -$0.16
BKI Black Iron Inc. $0.51
PBH Prestige Brands $0.79
W Wayfair Inc. $0.27
REGN Regeneron Pharmaceuticals $8.79
NSIT Insights $1.44
FIS Fidelity National Information Services $1.25
TRGP Targa Resources $0.15
EVOP EVO Payments Inc $0.12
CNQ Canadian Natural Resource USA $0.67
MUR Murphy Oil -$0.16
XRAY Dentsply International $0.55
IDCC InterDigital -$0.01
EVRG Evergy Inc $0.47
CAH Cardinal Health $1.57
EPC Edgewell Personal Care $0.62
THS TreeHouse Foods $0.35
STOR STORE Capital Corp $0.45
HAIN Hain Celestial $0.38
ADNT Adient PLC $0.59
MT Arcelormittal $1.57
OGE OGE Energy $0.18
NJR New Jersey Resources $1.17
MRNA Moderna Inc $2.36
BCRX BioCryst Pharmaceuticals -$0.26
FOCS Focus Financial Partners Inc $0.86
HII Huntington Ingalls Industries $2.52
IIVI Ii Vi $0.88
TPR Tapestry Inc $0.30
ARW Arrow Electronics $2.27
BLDR Builders Firstsource $0.81
INSM Insmed -$1.02
BECN Beacon Roofing Supply $0.01
NWSA News Corp $0.06
XLRN Acceleron Pharma -$0.83
QDEL Quidel $4.87
IHRT Iheartmedia -$0.44
AL Air Lease $1.01
Y Alleghany $4.65
AVLR Avalara Inc -$0.11
ALTR ALTAIR ENGINEERING $0.20
SEM Select Medical $0.65
CGNX Cognex $0.35
LYV Live Nation Entertainment -$1.77
TDC Teradata $0.46
CABO Cable One Inc $10.22
KWR Quaker Chemical $1.51
APLE Apple Hospitality $0.03
CLNE Clean Energy Fuels $0.01
ICUI ICU Medical $1.53
MCHP Microchip Technology $1.74
MTX Minerals Technologies $1.07
PTON Peloton Interactive, Inc. -$0.11
ANGI Angie’s List -$0.04
ENV Envestnet $0.61
CDK Cdk Global $0.68
REG Regency Centers $0.75
AIG AIG $0.99
SQ Square $0.16
MSI Motorola Solutions Msi $1.62
RVLV Revolve $0.13
SFM Sprouts Farmers Market $0.62
OLED Universal Display $0.67
PODD Insulet $0.06
AMH American Homes 4 Rent $0.31
PK Park Hotels & Resorts Inc -$0.55
EXPE Expedia -$2.52
TRIP TripAdvisor -$0.31
LNT Alliant Energy $0.67
FOXF Fox Factory $0.82
HTA Healthcare Of America $0.43
EXEL Exelixis $0.05
POST Post $0.55
CSOD Cornerstone OnDemand $0.42
SYNA Synaptics $1.87
ED Consolidated Edison $1.36
DBX Dropbox $0.30
IRTC iRhythm Tech -$0.87
DRH DiamondRock Hospitality -$0.14
MCK McKesson $5.01
YELP Yelp -$0.26
DIOD Diodes $0.78
CWK Cushman & Wakefield plc -$0.04
RGA Reinsurance Of America $0.07
STMP Stamps $1.63
EOG EOG Resources $1.50
BAP Credicorp USA $2.37
AAON AAON $0.24
MTD Mettler Toledo International $5.65
PCTY Paylocity $0.66
BCC Boise Cascade $2.50
NFG National Fuel Gas $1.21
MTZ MasTec $0.77
TPL Texas Pacific Land $5.77
FNF Fidelity National Financial $1.28
PHI Philippine Long Distance Telephone $0.61
NWS News $0.05
CYRX Cryoport Inc -$0.21
PPL PPL $0.61
NRG NRG Energy $1.64
NKTR Nektar Therapeutics -$0.75
GLUU Glu Mobile $0.07
PLUG Plug Power -$0.08
MNST Monster Beverage $0.61
NTLA Intellia Therapeutics Inc -$0.66
CTRE CareTrust REIT $0.36
ADT ADT $0.15
ARNA Arena Pharmaceuticals -$2.19
SWX Southwest Gas $1.83
MIDD Middleby $1.63
MRTX Mirati Therapeutics -$2.13
JOBS 51job $0.43
PFSI Pennymac Financial Services $5.79
KRTX Karuna Therapeutics -$1.06
MGEE Mge Energy $0.81
ITCI Intra Cellular Therapies -$0.81
XNCR Xencor -$0.77
SATS EchoStar -$0.02
DRNA Dicerna Pharmaceuticals -$0.28
IGMS IGM Biosciences -$0.98
RVNC Revance Therapeutics -$1.19
PAR Par Technology -$0.37
ACIW ACI Worldwide -$0.12
AG First Majestic Silver $0.07
ING Ing Groep $0.23
GFI Gold Fields $0.64
ABEV Ambev $0.03
AGO Assured Guaranty $0.56
MMS Maximus $0.82

Friday (May 7)

Ticker Company EPS Forecast
CI Cigna $4.37
VTR Ventas $0.02
LEA Lear $2.95
MD Mednax $0.16
AMCX AMC Networks $2.01
ENB Enbridge USA $0.57
CCJ Cameco USA -$0.08
TRP Transcanada USA $0.87
LBRDK Liberty Broadband Lbrdk $1.10
SPB Spectrum Brands $0.99
LBRDA Liberty Broadband $0.85
ITT ITT $0.87
FLR Fluor New $0.04
ESNT Essent $1.22
UNVR Univar Solutions Inc $0.32
HE Hawaiian Electric Industries $0.36
RICOY Ricoh Company -$0.08
IBP Installed Building Products $1.04
TU Telus USA $0.23
SSUMY Sumitomo ADR -$0.02
CNK Cinemark -$1.47
CVE Cenovus Energy USA -$0.02
LXP Lexington Realty $0.03

 

Amazon Shares Hit Record High After A Blowout Quarter; Analysts Lift Price Targets

Amazon.com, the world’s largest online retailer, reported better-than-expected earnings and revenue in the first quarter of 2021 as online sales surged due to the COVID-19 pandemic, sending shares to a record high on Friday.

The multinational technology company based in Seattle said its net income increased to $8.1 billion in the first quarter, or $15.79 per diluted share, compared with net income of $2.5 billion, or $5.01 per diluted share, in first-quarter 2020. That was higher than the Wall Street consensus estimates of $9.49 per share.

The Seattle, Washington-based company said its net sales increased 44% to $108.5 billion in the first quarter, compared with $75.5 billion in first-quarter 2020. Operating income increased to $8.9 billion.

On the second quarter 2021 guidance, Amazon.com forecast net sales between $110.0 billion and $116.0 billion, or to grow between 24% and 30% compared with second-quarter 2020. Operating income is expected to be between $4.5 billion and $8.0 billion, compared with $5.8 billion in second-quarter 2020.

Following the upbeat results, Amazon shares rose about 2% to hit an all-time high of $3554.00 on Friday.

Analyst Comments

Amazon’s (AMZN) 1Q21 result reflected a broad beat, with rev 4% above cons, Op Inc +43% vs. cons, and strength across all segments, including International growth of +50% y/y, which paced above NA (+39% y/y) for the 2nd quarter in a row; while AWS & adv. accelerated. 2Q21 rev. and Op Inc. guide (high end) were well above consensus. We raised estimates, price target to $4,600 from $4,400, reiterate Outperform,” noted John Blackledge, equity analyst at Cowen.

Amazon Stock Price Forecast

Thirty-four analysts who offered stock ratings for Amazon in the last three months forecast the average price in 12 months of $4,300.00 with a high forecast of $5,500.00 and a low forecast of $3,750.00.

The average price target represents a 21.85% increase from the last price of $3,529.04. All of those 34 analysts rated “Buy”, according to Tipranks.

Morgan Stanley gave the base target price of $4,500 with a high of $5,300 under a bull scenario and $2,700 under the worst-case scenario. The firm gave an “Overweight” rating on the e-commerce giant’s stock.

Amazon’s high-margin businesses continue to allow Amazon to drive greater profitability while still continuing to invest (last-mile delivery, fulfillment, 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 positive mix shift. Cloud adoption hitting an inflection point. Advertising serves as a key area for both further growth potential and profitability flow-through.”

Several other analysts have also updated their stock outlook. BofA raised the stock price forecast to $4360 from $4150. Canaccord Genuity raised the target price to $4400 from $4100. UBS lifted the price objective to $4350 from $4150. Oppenheimer upped the target price to $4400 from $4200. Raymond James increased the target price to $4125 from $4000. JP Morgan raised the target price to $4,600 from $4,400.

Moreover, Stifel lifted the target price to $4400 from $4000. Deutsche Bank raised the target price to $4500 from $4250. Truist Securities lifted the target price to $4000 from $3750. BMO increased the target price to $4300 from $4200. Mizuho upped the target price to $4400 from $4000. Guggenheim lifted the target price to $4,200 from $4,000. Wedbush lifted the target price to $4,300 from $4,000.

Check out FX Empire’s earnings calendar

Chevron Shares Fall About 3% After Q1 Revenue Disappoints

Chevron shares fell about 3% in pre-market trading on Friday after the oil company reported lower-than-expected revenue in the first quarter of this year as ongoing downstream in margin and volume effects resulting from the pandemic and winter storm Uri offset gains from higher oil prices.

The second-largest U.S. oil producer reported adjusted earnings of $1.7 billion, $0.90 per share, in first-quarter 2021, down about 30% compared to adjusted earnings of $2.5 billion, $1.31 per share, in first-quarter 2020. That was in line with Wall Street’s consensus estimates of $0.88 per share.

However, sales and other operating revenues rose from $31.5 billion in the year-ago period to $32.03 billion, missing the market expectations of $32.5 billion.

Chevron shares fell about 3% to $103.85 in pre-market trading on Friday.

Analyst Comments

“Slight Negative Chevron (CVX) earnings came in line with expectations though could be perceived less favorably compared to beats by peers. FCF was in line with consensus as lower CFO offset lower capex. Cash flow drag from affiliates was higher than expected, though this could have been offset by lower TCO co-lending, and we look for more color on the earnings call. Maintain Outperform, $113 PT,” said Jason Gabelman, equity analyst at Cowen.

“We do not expect any update on TCO FGP this quarter, as the company has previously noted. An update may not come until 3Q21 earnings. Topics of interest on the call include any changed guidance on cash flow drag from distributions & TCO co-lending and timing around re-initiating the buyback.”

Chevron Stock Price Forecast

Sixteen analysts who offered stock ratings for Chevron in the last three months forecast the average price in 12 months of $118.94 with a high forecast of $130.00 and a low forecast of $101.00.

The average price target represents an 11.26% increase from the last price of $106.90. Of those 16 analysts, 10 rated “Buy”, six rated “Hold” while none rated “Sell”, according to Tipranks.

Morgan Stanley gave the base target price of $127 with a high of $167 under a bull scenario and $69 under the worst-case scenario. The firm gave an “Overweight” rating on the oil company’s stock.

“Strong free cash flow with attractive growth. CVX offers peer-leading cash flow anchored by low-risk investments, a differentiated value proposition in the sector – particularly in the current uncertain macro backdrop. NBL acquisition adds quality, capital-efficient assets and is accretive to financial metrics,” said Devin McDermott, equity analyst at Morgan Stanley.

“Attractive dividend yield. A low corporate breakeven and strong balance sheet supports CVX’s ~5% dividend yield and makes the strategy resilient through the cycle. Differentiated, low-royalty Permian position. CVX holds 1.7 MM acres in the Permian basin containing >21 Bboe of resource. Importantly, >80% of CVX’s Permian acreage is low or no royalty, improving returns and cash flow.”

Several other analysts have also updated their stock outlook. HSBC raised the stock price forecast to $126 from $125.5. Scotiabank lifted the target price to $118 from $115. Raymond James lowered the target price to $120 from $122. Jefferies upped the price target to $109 from $101. Simmons Energy increased the price target to $126 from $113.

Check out FX Empire’s earnings calendar

Comcast Shares Rise After Q1 Earnings Blow Past Estimates; Target Price $65

Comcast Corporation, one of the largest cable television operators in the United States, reported better-than-expected earnings and revenue in the first quarter as an increase in broadband subscribers helped the cable giant to recover from the COVID-19 woes, sending its shares up about 4% on Thursday.

The cable television operator said its revenue for the first quarter of 2021 increased 2.2% to $27.2 billion, beating Wall Street’s consensus estimates of $26.7 billion. Adjusted net income increased 8.1% to $3.5 billion. Adjusted EBITDA increased 3.5% to $8.4 billion.

Comcast said its earnings per share (EPS) for the first quarter of 2021 was $0.71, an increase of 54.3% compared to the first quarter of 2020. Adjusted EPS increased 7.0% to $0.76, above the market expectations of $0.59 per share.

Following this, Comcast shares rose about 4% to $56.17 on Thursday.

The media giant also said its total broadband customer net additions were 461,000, total video customer net losses were 491,000 and total voice customer net losses were 106,000. In addition, cable communications added 278,000 wireless lines in the quarter.

Comcast Stock Price Forecast

Sixteen analysts who offered stock ratings for Comcast in the last three months forecast the average price in 12 months of $62.13 with a high forecast of $70.00 and a low forecast of $48.00.

The average price target represents a 10.59% increase from the last price of $56.18. Of those 16 analysts, 13 rated “Buy”, two rated “Hold” while one rated “Sell”, according to Tipranks.

Morgan Stanley gave the base target price of $65 with a high of $77 under a bull scenario and $45 under the worst-case scenario. The firm gave an “Overweight” rating on the cable television operator’s stock.

Several other analysts have also updated their stock outlook. Comcast had its price target hoisted by stock analysts at Pivotal Research to $65 from $63. The firm currently has a “buy” rating on the cable giant’s stock. Macquarie lifted their price target to $58 from $53. Truist lifted their price target to $60 from $50. Cowen raised Comcast their price target to $60 from $56.

Analyst Comments

“In Cable, we believe continued runway in broadband will offset video declines, with the mix shift driving rising margins and falling capital intensity. At NBCU/Sky, we believe temporary headwinds from macro and COVID-19 have pressured CMCSA multiples, resulting in an attractive risk/reward,” said Benjamin Swinburne, equity analyst at Morgan Stanley.

Check out FX Empire’s earnings calendar

eBay Shares Slump Over 6% as Q2 Earnings Forecast Disappoints

US e-commerce giant eBay’s shares slumped over 6% in extended trading on Wednesday after the eCommerce leader for physical and digital merchandise forecast earnings less than what Wall Street had expected for the second quarter of 2021.

The San Jose, California-based company forecasts diluted non-GAAP earnings per share (EPS) in the range of $0.91 – $0.96 for the current quarter, below Wall Street’s consensus estimates of $1.02 per share. The company’s revenue is expected to be in the range of $2.98 – $3.03.

Following this, eBay shares slumped over 6% to $58.50 in extended trading on Wednesday.

However, in the first quarter of 2021, the company reported non-GAAP EPS per diluted share of $1.09 on revenue of $3.03 billion, which beat analysts’ EPS expectations of $1.08 on revenue of $2.97 billion, respectively.

eBay has also declared a cash dividend of $0.18 per share of the company’s common stock.

Analyst Comments

“The company guided below the Street. My 2022 EPS number is still much higher than the Street but for now that’s not going to be investor focus. This year the company gave a lower Q2 than Street guide and talked about a challenged back half as people get out more. So, I don’t think investors will swivel and look at the 2022 potential just yet,” noted Chaim Siegel, equity analyst at Elazar Advisors.

“2022 EPS of $7.15 potential with brining payments in-house so 14x $7.15 is almost 70% 12-month upside potential. But again, the focus won’t be next year when the company’s talking about headwinds in growth rates this year.”

eBay Stock Price Forecast

Twenty-one analysts who offered stock ratings for eBay in the last three months forecast the average price in 12 months of $71.67 with a high forecast of $84.00 and a low forecast of $62.00.

The average price target represents a 15.00% increase from the last price of $62.32. Of those 21 analysts, ten rated “Buy”, 11 rated “Hold” while none rated “Sell”, according to Tipranks.

Morgan Stanley gave the base target price of $63 with a high of $79 under a bull scenario and $45 under the worst-case scenario. The firm gave an “Equal-weight” rating on the e-commerce corporation’s stock.

eBay has shifted its strategy to focus on non-new, in-season, refurbished, collectible goods and continues to repurchase shares. New growth drivers, such as Promoted Listings and Payment intermediation (to be rolled out 2021) are on track,” noted Brian Nowak, equity analyst at Morgan Stanley.

Several other analysts have also updated their stock outlook. Evercore ISI raised the stock price forecast to $66 from $65. Credit Suisse lifted the target price to $78 from $76. Piper Sandler increased their price target to $75 from $66 and gave the stock an “overweight” rating.

Moreover, DA Davidson increased their price target to $80 from $67 and gave the stock a “buy” rating. Barclays increased their price target to $84 from $82 and gave the stock an “overweight” rating.

Check out FX Empire’s earnings calendar

Hess Shares Soar After Blowout Quarterly Earnings; Target Price $86

Hess Corporation, an independent oil & gas exploration and production company, reported earnings way above what Wall Street had expected for the first quarter of 2021, sending its shares up over 7% on Wednesday.

The energy company said its net income was $252 million, or $0.82 per common share, compared with a net loss of $2,433 million, or $8.00 per common share in the first quarter of 2020. That was more than double the market expectations of $0.36 per share.

Following this, Hess shares surged as much as 7.7% to $75.93 on Wednesday.

However, Hess cut its forecasts for net production, excluding Libya, to be 290,000 boepd to 295,000 boepd from previous guidance of nearly 310,000 boepd.

Analyst Comments

HES beat 1Q EBITDAX estimates by 25% owing to abberationally higher pricing from February’s polar vortex. Oil ex-Libya missed by 1% on weather-related impacts in the Bakken though capex was 31% below consensus. FY capex was maintained at $1.9bn but production guidance was lowered by 6% largely due to NGL POP accounting in the Bakken. We expect a largely neutral response to the print,” noted David Deckelbaum, equity analyst at Cowen.

Hess Corp Stock Price Forecast

Ten analysts who offered stock ratings for Hess Corp in the last three months forecast the average price in 12 months of $86.78 with a high forecast of $110.00 and a low forecast of $73.00.

The average price target represents a 14.50% increase from the last price of $75.79. Of those 10 analysts, nine rated “Buy”, one rated “Hold” while none rated “Sell”, according to Tipranks.

Morgan Stanley gave the base target price of $82 with a high of $121 under a bull scenario and $41 under the worst-case scenario. The firm gave an “Overweight” rating on the oil & gas exploration and production company’s stock.

“Differentiated rate of change story underpinned by highly economic, long-cycle growth in Guyana balanced by short-cycle optionality in the Bakken. As Guyana production comes online HES‘ breakeven oil price is set to fall from over $70/bbl in 2019 to <$40/bbl by 2025,” noted Devin McDermott, equity analyst at Morgan Stanley.

“Guyana – underappreciated “crown jewel” asset. Guyana asset offers high return economics and underappreciated upside potential as management derisks future development. Rapid payback contract structure puts economics on par to better than most conventional and unconventional developments. Bakken also offers upside. Management’s Bakken target appears conservative as the company shifts to a new completion design.”

Several other analysts have also updated their stock outlook. Raymond James lowered the target price to $90 from $92. Cowen and company lifted the target price to $73 from $60. Susquehanna upped the price target to $83 from $72.

Moreover, CFRA increased the target price to $72. Scotiabank raised the target price to $75 from $71. Credit Suisse lifted the price target to $70 from $58. JP Morgan upped the price target to $80 from $69.

Check out FX Empire’s earnings calendar