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Earnings Season Scorecard and Analyst Reports for P&G, IBM & Charter Communications

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·6 min read
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Tuesday, February, 2022

The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features a real-time scorecard of the Q4 earnings season and new research reports on 16 major stocks, including The Procter & Gamble Company (PG), International Business Machines Corporation (IBM), and Charter Communications, Inc. (CHTR). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.

You can see all of today’s research reports here >>>

Q4 Earnings Season Scorecard (as of February 1st, 2022)

Including all of this morning's results, we now have Q4 results from 184 S&P 500 members or 36.8% of the index's total membership.

Total earnings for these companies are up +34.6% from the same period last year on +18% higher revenues, with 81.5% beating EPS estimates and 78.3% beating revenue estimates.

While the Q4 growth rates represent deceleration from the pace seen in the first three quarters of the year, which is in-line with what was expected all along. The beats percentages are in-line with what we saw in the preceding period, but otherwise below what we saw in the first half of the year.

For Q4 as a whole, combining the actual results that have come with estimates for the still-to-come companies, total earnings and revenue are expected to be be up +24.6% and +13.3% from the same period last year, respectively.

Today's Featured Analyst Reports

Shares of Procter & Gamble have outperformed the Zacks Soap and Cleaning Materials industry over the past year (+27.7% vs. +13.7%). The Zacks analyst believes that PG has been gaining from the resurgence in demand for cleaning products and improved productivity.

Procter & Gamble’s products play a key role in meeting the daily health, hygiene and cleaning needs of consumers, which has been boosting the demand for its hand soaps, detergents and surface cleaning products since the beginning of the pandemic. PG’s fiscal 2022 results benefited from robust top-line growth across all segments driven by robust volume, pricing and mix. Commodity cost inflation, increase in freight costs and pandemic-related woes have been stressing its margins.

(You can read the full research report on Procter & Gamble here >>>)

IBM shares have gained +1.4% over the past six months against the S&P 500’s rise of +3.2%, however, things seem to be improving for it. The Zacks analyst believes that an expanding product portfolio, synergies from Red Hat acquisition and solid uptake of cloud-based digital transformation solutions are expected to boost IBM's growth prospects.

IBM is poised to gain from the spin-off of the legacy infrastructure services business as it focuses on its hybrid cloud strategy. Stiff competition in the cloud computing market from the likes of Amazon Web Services and Microsoft Azure as well as higher debt levels amid extensive restructuring activities remain as major headwinds for IBM.

(You can read the full research report on IBM here >>>)

Shares of Charter Communications have lost -13% in the last three months against the Zacks Cable TV industry’s loss of -7.4%. Charter persistently suffers video-subscriber attrition due to cord-cutting and stiff competition in the streaming space. A leveraged balance sheet is an added concern.

The Zacks analyst, however, believes that Charter continues to benefit from growth in Internet, mobile and advertising revenues. CHTR’s top-line is also gaining from an expanding user base. A spike in Internet usage due to the coronavirus-induced work-from-home and online-learning wave is another tailwind.

(You can read the full research report on Charter Communications here >>>)

Other noteworthy reports we are featuring today include The Boeing Company (BA), Lockheed Martin Corporation (LMT) and Lam Research Corporation (LRCX).

Sheraz Mian

Director of Research

Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>

Today's Must Read

High Demand & Productivity Plan Drives P&G's (PG) Growth

IBM Rides on Hybrid Cloud Strategy, Red Hat Synergies

Mobile & Internet Subscriber Gain Benefits Charter (CHTR)

Featured Reports

Military Business Aids Boeing (BA), Supply Chain Issue Woes
Per the Zacks analyst, Boeing boasts a $2.6 trillion market opportunity for defense and space, which would bolster its growth.

Order Growth Aids Lockheed Martin(LMT), COVID Impacts Woe
Per the Zacks analyst, solid order flow for its products bolsters Lockheed Martin's revenue growth prospects.

Growth in Foundry & Logic Segments Aids Lam Research (LRCX)
Per the Zacks analyst, Lam Research is benefiting from growing traction across etch and deposition technologies which are strengthening its foundry and logic segments.

Rising Top-line Aid, High Debts Hurt HCA Healthcare (HCA)
Per the Zacks analyst, its growing top-line driven by increasing admissions has led to significant growth of the company.

Rapid TAVR Growth Aids Edwards (EW) amid Forex Headwinds
The Zacks analyst is impressed with Edwards' TAVR segment growth in the fourth quarter on increased customer adoption for the SAPIEN 3 Ultra platform.

5G Portfolio, Partnerships Aid Nokia (NOK) Amid Competition
Per the Zacks analyst, Nokia is poised to benefit from its industry-leading 5G product and services portfolio while expanding its partnership with communications service providers globally.

Higher Project Activity Aids EMCOR (EME) Amid Supply Woes
Higher project activity within manufacturing, healthcare, and commercial markets, and key buyouts are driving growth for EMCOR, per the Zacks analyst.

New Upgrades

W.R. Berkley (WRB) is Set to Grow on Solid Insurance Business
Per the Zacks analyst, W.R. Berkley is set to grow on the strength of its Insurance business, growing international business, investment in alternative assets, and solid capital position.

Solid Product Offerings, Buyouts to Benefit Cimpress (CMPR)
Per the Zacks analyst, strength in Cimpress' BuildASign business, solid product offerings, and the Depositphotos buyout will lend momentum to it. Its investment in product innovation bodes well.

Rising Loans and Cost Control Efforts Aid Sallie Mae (SLM)
Per the Zacks analyst, rising private education loan originations bode well for Sallie Mae. Also, cost-control measures to drive efficiency are encouraging.

New Downgrades

Cost Inflation Hurts Kimberly-Clark's (KMB) Operating Profit
Per the Zacks analyst, Kimberly-Clark has been battling escalated input costs for a while. The company's adjusted operating profit declined by $156 million in the fourth quarter due to high costs.

Omicron-Led Woes, High Costs Hit Southwest Airlines (LUV)
The Zacks analyst is worried about the omicron-induced operational disruptions at Southwest Airlines. Steep fuel costs are concerning too.

Competition in Key Businesses A Concern for Viatris (VTRS)
Per the Zacks analyst, Viatris faces stiff competition for its brands and biosimilar business, and gaining market share will be tough.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The Boeing Company (BA) : Free Stock Analysis Report
Lockheed Martin Corporation (LMT) : Free Stock Analysis Report
International Business Machines Corporation (IBM) : Free Stock Analysis Report
Procter & Gamble Company The (PG) : Free Stock Analysis Report
Lam Research Corporation (LRCX) : Free Stock Analysis Report
Charter Communications, Inc. (CHTR) : Free Stock Analysis Report
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