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