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Earnings to Watch Next Week: Logitech, Goldman Sachs, NetFlix and IBM in Focus

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Vivek M. Kumar
·7 min read
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Next week’s earnings are of much significance for major market movements as 2021 is believed to be a year of recovery on hopes of successful roll-out of the COVID-19 vaccine.

  • Monday (January 18)

  • Tuesday (January 19)

  • Wednesday (January 20)

  • Thursday (January 21)

  • Friday (January 22)

Earnings Calendar For The Week Of January 18

Monday (January 18)

IN THE SPOTLIGHT: LOGITECH INTERNATIONAL

Logitech International S.A., a Swiss-American manufacturer of computer peripherals and software, is expected to report a profit of $1.08 in the fiscal third quarter, which represents year-over-year growth of about 29% from the same quarter last year when the company reported 84 cents per share.

The Lausanne-based company’s revenue to grow over 35% year-over-year to $1.23 billion from $902.69 million in the same period last year.

“We are bullish into Logitech‘s F3Q21 earnings report next week as our December quarter checks point to a better than the expected market environment, most notably for PC peripherals. We’d be buyers into the print and raise our PT to $113 (from $106) to account for recent peer multiple expansion,” noted Erik Woodring, equity analyst at Morgan Stanley.

Tuesday (January 19)

IN THE SPOTLIGHT: GOLDMAN SACHS, NETFLIX

GOLDMAN SACHS: New York-based leading global investment bank is expected to report a profit of $7.33 in the fourth quarter, which represents year-over-year growth of about 56% from the same quarter last year when the company reported $4.69 per share. The bank’s revenue is expected to dip 4.9% from the year-ago quarter to $9.47 billion.

“As market volatility and the urgency around capital raising activity (both equity and debt) subside in 2021, we expect total revenues decline 11% y/y from a strong 2020. We are valuing the group on normalized 2023 EPS. While we still see 15%+ upside to Goldman Sachs (GS) based on this methodology, we see even more upside elsewhere in the group, particularly in consumer finance stocks which have been under more pressure,” said Betsy Graseck, equity analyst at Morgan Stanley.

“This drives our Underweight rating. Over time, we expect GS can drive some multiple expansion as management executes on its multi-year strategic shift towards higher recurring revenues.”

NETFLIX: California-based global internet entertainment service company is expected to report a profit of $1.35 in the fourth quarter, which represents year-over-year growth of about 4% from the same quarter last year when the company reported $1.30 per share. The streaming video pioneer’s revenue is expected to surge over 20% from the year-ago quarter to $6.60 billion.

“We expect paid net adds to come in the above guide, helped by ongoing shutdowns & seasonal strength. Our view is supported by our positive proprietary 4Q20 survey data, which implies rising pricing power into year-end. We tweaked estimate’s & introduced ’21 quarters; in turn, our DCF-based price target rises to $650 from $625 prior; reiterate ‘Outperform’ rating,” said John Blackledge, equity analyst at Cowen and company.

NetFlix (NFLX) shares were +67% in ’20 alongside a pandemic surge, following massive sub beats in 1Q / 2Q respectively and 28.1MM total paid net adds in 1Q-3Q ’20, up 47% y/y. With consumers staying home amid colder weather & limited social activities, we expect Netflix engagement to remain high; meanwhile, to the extent, there is any NT pressure on UCAN paid subs from the 4Q US price increase, we would consider this a buying opportunity for NFLX shares as the co. grows the value prop alongside rising ARPU.”

TAKE A LOOK AT OUR EARNINGS CALENDAR FOR THE FULL RELEASES FOR THE JANUARY 19

Ticker

Company

EPS Forecast

PACW

Pacwest Bancorp

$0.67

CMA

Comerica

$1.18

ONB

Old National Bancorp

$0.38

SCHW

Charles Schwab

$0.65

GS

Goldman Sachs

$7.33

STT

State Street

$1.57

HAL

Halliburton

$0.15

FULT

Fulton Financial

$0.27

JBHT

J B Hunt Transport Services

$1.30

ZION

Zions Bancorporation

$1.01

PNFP

Pinnacle Financial Partners

$1.36

FNB

FNB

$0.24

UCBI

United Community Banks

$0.60

NFLX

Netflix

$1.35

IBKR

Interactive Brokers

$0.58

RNST

Renasant

$0.59

SBNY

Signature Bank

$2.91

Wednesday (January 20)

IN THE SPOTLIGHT: UNITEDHEALTH

UNITEDHEALTH: Minnesota-based health insurance and health care data analysis giant is expected to report a profit of $2.41 in the fourth quarter, which represents a year-over-year decline of about 40% from the same quarter last year when the company reported $3.90 per share.

The largest insurance company by Net Premiums is witnessing a slowdown in its international business as increased joblessness due to the COVID-19 pandemic has dented demand for commercial membership.

UnitedHealth Group is the number one Medicare Advantage player with 28% market share, the number two Medicare PDP player with 20% market share, and the number two commercial player with 15% market share. United’s model is enhanced via vertical integration with its OptumRx PBM platform, which is one of the three largest PBMs in the country,” wrote Ricky Goldwasser, equity analyst at Morgan Stanley.

“With a large lead in the breadth of services offerings and considerable exposure to government businesses, UnitedHealth is well-positioned for any potential changes in the US healthcare system. A strong balance sheet and continued solid cash generation give flexibility for continued M&A.”

United Airlines is expected to report a deep loss in the fourth quarter due to the COIVD-19 pandemic, which harmed demand for travel.

Ohio-based Tide detergent and Pampers diaper manufacturer Procter & Gamble is expected to report an increase in profits on rising demand for home care and laundry products amid the COIVD-19 pandemic.

TAKE A LOOK AT OUR EARNINGS CALENDAR FOR THE FULL RELEASES FOR THE JANUARY 20

Ticker

Company

EPS Forecast

UNH

UnitedHealth

$2.41

PG

Procter & Gamble

$1.51

ASML

Asml

$2.96

MS

Morgan Stanley

$1.30

USB

US Bancorp

$0.95

BK

Bank Of New York Mellon

$0.88

FAST

Fastenal

$0.33

CFG

Citizens Financial

$0.91

CBSH

Commerce Bancshares

$0.92

BOKF

BOK Financial

$1.92

FCEL

Fuelcell Energy

-$0.07

KMI

Kinder Morgan

$0.24

DFS

Discover Financial Services

$2.36

UAL

United Airlines Holdings

-$6.56

AA

Alcoa

$0.09

WTFC

Wintrust Financial

$1.41

UMPQ

Umpqua

$0.48

HWC

Hancock Whitney Corp

$0.90

PLXS

Plexus

$1.10

STL

Sterling Bancorp

$0.46

PTC

PTC

$0.65

Thursday (January 21)

IN THE SPOTLIGHT: IBM

IBM: Armonk, New York-based technology and consulting company is expected to report a profit of $1.81 in the fourth quarter, which represents a year-over-year decline of over 60% from the same quarter last year when the company reported $4.71 per share.

“For 2020, IBM refrained from providing any guidance, citing business uncertainty. Nevertheless, management stated that the fourth quarter is a seasonally strong quarter. The company is witnessing robust pipelines across hybrid cloud and data platform, AI solutions, in Cognitive Apps business driven by strength in Cloud Paks and Security, cloud-based transformation services in GBS segment, and App modernization offerings,” noted analysts at ZACKS Research.

“Also, management is banking on advancement in Red Hat “actual backlog growth.” Moreover, gains from the rapid uptake of IBM z15 is anticipated to be a tailwind. The company also anticipates to end 2020 with reduced debt levels.”

TAKE A LOOK AT OUR EARNINGS CALENDAR FOR THE FULL RELEASES FOR THE JANUARY 21

Ticker

Company

EPS Forecast

UNP

Union Pacific

$2.24

TFC

Truist Financial Corp

$0.85

TAL

TAL International

$0.04

TRV

Travelers Companies

$3.16

BKR

Baker Hughes Co

$0.17

FITB

Fifth Third Bancorp

$0.68

NTRS

Northern

$1.49

MTB

M&T Bank

$3.02

KEY

KEY

$0.43

CTXS

Citrix Systems

$1.34

HOMB

Home Bancshares

$0.39

INDB

Independent Bank

$1.02

FBC

Flagstar Bancorp

$2.36

WBS

Webster Financial

$0.75

BKU

BankUnited

$0.71

WNS

Wns Holdings

$0.59

INTC

Intel

$1.10

IBM

IBM

$1.81

ISRG

Intuitive Surgical

$3.09

CSX

CSX

$1.01

PPG

PPG Industries

$1.58

SIVB

SVB Financial

$3.79

TCBI

Texas Capital Bancshares

$1.13

ASB

Associated Banc

$0.30

PBCT

People’s United Financial

$0.32

OZK

Bank Ozk

$0.78

WAL

Western Alliance Bancorporation

$1.33

BKRKY

Bank Rakyat

$0.17

MTCH

Match Group

$0.50

MTG

MGIC Investment

$0.37

STX

Seagate Technology

$1.13

Friday (January 22)

Ticker

Company

EPS Forecast

EDU

New Oriental Education Tech

$0.26

ABBV

AbbVie

$2.86

HON

Honeywell International

$2.00

SLB

Schlumberger

$0.17

KSU

Kansas City Southern

$1.93

RF

Regions Financial

$0.42

HBAN

Huntington Bancshares

$0.29

ALLY

Ally Financial

$1.05

FHN

First Horizon National

$0.28

HRC

Hill-Rom

$1.05

NEP

Nextera Energy Partners

$0.39

IBN

Icici

$0.14

TOP

Topdanmark A/S

kr3.63

 

This article was originally posted on FX Empire

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