Disney, Uber, and CVS Health Earnings - 3 Things To Watch
By Daniel Shvartsman
Investing.com - Stocks staged a rally on Tuesday in the face of higher bond yields, with financials and small-caps driving the action and tech companies keeping pace. Tuesday also marked a rare down day for oil, as West Texas Intermediate notched a second-straight down day before the API inventories report came in with a surprise inventory draw.
While the CPI report looms on Thursday, tomorrow's market sees a number of major companies set to report. Here are three that should draw interest both for their own outlooks and for what they say about the broader state of the economy and market.
1. Walt Disney Earnings
Disney (NYSE:DIS) is set to report after the bell tomorrow. The media giant is expected to post $20.27B in revenue, nearly 25% ahead of last year’s number, with earnings expected to be $.73/share, well ahead of 2020’s Q4 (fiscal Q1 2021 for Disney). Disney+ will remain in the spotlight, with expectations of 8.5M subscriber adds for the streaming service. Disney faces a tough tape given their muted October quarter, where they added 2.1M subscribers, and Netflix’s similarly muted most recent quarter and guidance.
On the other hand, Disney can hope that the rest of their business, especially theme parks, is starting to pick up or at least seeing light on the other side of the Omicron wave. Disney is trading about 30% off of 52-week highs and about even with late 2019 levels, which was when the company rode its first Disney+ launch momentum, so a twist in the story would be most welcome for shareholders.
2. Uber Earnings
Ride share and mobility company Uber (NYSE:UBER) also reports earnings tomorrow after the market close. Uber is expected to report 69% year over year revenue growth and guide for a further 102% revenue growth for Q1 2022. Profits are not yet expected for Uber.
The company’s guidance should shed light on the level of ‘reopening’ activity and thus need for rides and moving people around, and on the other hand how sticky the food delivery (and everything delivery) demand will be in a reopening environment, and a competitive one at that. Uber also has an Investor Day scheduled for Thursday where they are likely to set long-term targets, so there will be a lot for investors to work through.
3. CVS Health Earnings
CVS (NYSE:CVS) reports earnings before market hours tomorrow, with the pharmacy and healthcare company expected to post $75.63B in revenue, 8.7% ahead of last year’s quarter, and earnings of $1.82/share, well ahead of last year’s $1.3/share number.
Given CVS’s position as both a leading pharmacy chain and a healthcare provider via their Aetna unit, their commentary on the current Covid environment on both the cost side for healthcare companies and the demand side will provide a useful read-through for investors.
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