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Earnings Week Ahead: Steel Dynamics, NetFlix, Tesla, AutoNation and Honeywell in Focus

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·11 min read
In this article:
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  • Monday (October 18)

  • Tuesday (October 19)

  • Wednesday (October 20)

  • Thursday (October 21)

  • Friday (October 22)

Earnings Calendar For The Week Of October 18

Monday (October 18)

IN THE SPOTLIGHT: STEEL DYNAMICS, STATE STREET

STEEL DYNAMICS: The U.S-based domestic steel producer and metal recycler is expected to report its third-quarter earnings of $4.62 per share, which represents year-on-year growth of over 800% from $0.51 per share seen in the same period a year ago.

The third-largest producer of carbon steel products in the United States would post revenue growth of over 114% to around $5.0 billion. The company has consistently beaten consensus earnings estimates for the last four quarters.

The company updated its earnings guidance for the third quarter of 2021 in September. For the period, earnings per share (EPS) were expected to be between $4.880-$4.920.

Steel Dynamics is nearing the end of a multi-year investment cycle centered around the construction of a new, state-of-the-art steelmaking mill which comes online in mid-2021, positioning STLD’s FCF generation to increase from 2021 onwards. The company has a proven track record of shareholder returns, and is poised to deliver greater returns for investors, especially through share buybacks,” noted Carlos De Alba, equity analyst at Morgan Stanley.

STATE STREET: The second oldest continually operating United States bank is expected to post third-quarter earnings of $1.92 per share, which represents year-on-year growth of over 30% from $1.45 per share seen in the same period a year ago. The revenue is expected to increase around 6% to $2.95 billion.

TAKE A LOOK AT OUR EARNINGS CALENDAR FOR THE FULL RELEASES FOR THE OCTOBER 18

Ticker

Company

EPS Forecast

STT

State Street

$1.92

ACI

AltaGas Canada

$0.45

ELS

Equity Lifestyle Properties

$0.33

STLD

Steel Dynamics

$4.62

PACW

Pacwest Bancorp

$1.03

HXL

Hexcel

$0.08

SFBS

ServisFirst Bancshares

$0.96

FNB

FNB

$0.29

ACKAY

Arcelik ADR

$0.68

PHG

Koninklijke Philips

$0.62

ZION

Zions Bancorporation

$1.36

Tuesday (October 19)

IN THE SPOTLIGHT: NETFLIX, JOHNSON & JOHNSON

NETFLIX: The California-based global internet entertainment service company is expected to report its third-quarter earnings of $2.57 per share, which represents year-over-year growth of over 45% from $1.74 per share seen in the same period a year ago.

The streaming video pioneer would post revenue growth of over 16% to around $7.5 billion. In the last two years, the company has beaten earnings per share (EPS) estimates just thrice with a surprise of nearly 21%.

NetFlix’s better-than-expected third-quarter earnings results could help the stock hit new all-time highs. The company’s shares surged over 17% so far this year and it hit a record high of $646.84 on October 7.

NetFlix (NFLX) stock has emerged from its slump, jumping ~22% in <2 months. Estimates have remained relatively flat and NFLX now trades at 8.5x 2022E Rev, the top of its 3-year range. We expect 3Q net adds of 3.5MM and a 4Q guide of ~7-8MM. Squid Games has demonstrated the impact of a successful international strategy and, if done right, games like Oxenfree could achieve a similar Zeitgest moment. We remain ‘Buy’ rated with a price target of $737, representing 8.5x 2023 JEF Rev,” noted Andrew Uerkwitz, equity analyst at Jefferies.

JOHNSON & JOHNSON: One of the world’s largest and most comprehensive manufacturers of healthcare products is expected to post third-quarter earnings of $2.36 per share, which represents year-on-year growth of over 7% from $2.20 per share seen in the same period a year ago. The revenue to expected to increase over 12% to around $23.6 billion.

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

Ticker

Company

EPS Forecast

FMBI

First Midwest Bancorp

$0.42

DOV

Dover

$1.85

SBNY

Signature Bank

$3.70

MAN

ManpowerGroup

$1.91

JNJ

Johnson & Johnson

$2.36

PM

Philip Morris International

$1.56

BK

Bank Of New York Mellon

$1.01

TRV

Travelers Companies

$1.91

ERIC

Ericsson

$0.17

FITB

Fifth Third Bancorp

$0.91

SYF

Synchrony Financial

$1.51

KSU

Kansas City Southern

$2.09

CBSH

Commerce Bancshares

$0.98

ONB

Old National Bancorp

$0.36

AMX

America Movil Sab De Cv Amx

$6.43

AMOV

America Movil Sab De Cv

$0.31

FULT

Fulton Financial

$0.33

NFLX

Netflix

$2.57

ISRG

Intuitive Surgical

$1.17

CNI

Canadian National Railway USA

$1.42

OMC

Omnicom

$1.37

UAL

United Airlines Holdings

-$1.51

IBKR

Interactive Brokers

$0.75

WTFC

Wintrust Financial

$1.52

WDFC

Wd 40

$1.24

UCBI

United Community Banks

$0.66

HAL

Halliburton

$0.28

SNV

Synovus Financial

$1.07

PG

Procter & Gamble

$1.59

IRDM

Iridium Communications

-$0.02

RNST

Renasant

$0.66

Wednesday (October 20)

IN THE SPOTLIGHT: TESLA

TESLA: The California-based electric vehicle and clean energy company is expected to report its third-quarter earnings of $1.52 per share, which represents year-over-year growth of 100% from $0.76 per share seen in the same quarter a year ago.

The high-performance electric vehicle manufacturer would report revenue of $13.16 billion. The electric vehicle producer has beaten earnings three times in the last four quarters.

“We expect Tesla will be upbeat in 3Q21 given record deliveries beating estimates by ~20k announced in early October. Furthermore, the company announced record sales of 56,000 in China with a total of 133,248 or 55% of total deliveries for the quarter coming from their Shanghai facility,” noted Jeffrey Osborne, equity analyst at Cowen.

“We look forward to management’s commentary on Tesla’s internal chip production strategy and capacity expansion plans. We also look forward to an update on the opening of the Berlin Gigafactory. Additionally, we look forward to an update on Tesla’s 4680 cells and the incremental deployment of its beta FSD. Finally, we look forward to an update on the timeline for Semi and Cyber truck release.”

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

Ticker

Company

EPS Forecast

ASML

ASML

$4.61

ABT

Abbott

$0.94

NEE

NextEra Energy

$0.73

BIIB

Biogen

$4.14

NDAQ

Nasdaq Omx

$1.71

NTRS

Northern

$1.67

BKR

Baker Hughes Co

$0.21

MTB

M&T Bank

$3.50

MKTX

MarketAxess

$1.46

LAD

Lithia Motors

$9.24

FHN

First Horizon National

$0.35

KNX

Knight Transportation

$1.06

BOKF

BOK Financial

$1.78

NEP

Nextera Energy Partners

$0.61

WSO

Watsco

$3.49

UNF

UniFirst

$1.81

SCL

Stepan

$1.42

TSLA

Tesla

$1.52

CSX

CSX

$0.38

CCI

Crown Castle International

$0.77

DFS

Discover Financial Services

$3.49

PPG

PPG Industries

$1.59

EFX

Equifax

$1.73

GGG

Graco

$0.64

REXR

Rexford Industrial Realty

$0.12

OMF

OneMain Holdings

$2.30

FR

First Industrial Realty

$0.22

THC

Tenet Healthcare

$1.03

LSTR

Landstar System

$2.46

SLM

SLM

$0.18

VMI

Valmont Industries

$2.49

SLG

SL Green Realty

-$0.12

LVS

Las Vegas Sands

-$0.18

SEIC

SEI Investments

$0.96

GL

Globe Life Inc

$1.90

TBK

Triumph Bancorp

$1.08

RUSHA

Rush Enterprises

$0.98

RLI

RLI

$0.59

UMPQ

Umpqua

$0.44

CNS

Cohen & Steers

$0.89

FTI

FMC Technologies

$0.02

TCBI

Texas Capital Bancshares

$1.10

STL

Sterling Bancorp

$0.52

ANTM

Anthem

$6.39

LRCX

Lam Research

$8.23

IBM

IBM

$2.53

KMI

Kinder Morgan

$0.24

URI

United Rentals

$6.84

CFG

Citizens Financial

$1.15

CMA

Comerica

$1.64

EXPO

Exponent

$0.40

MTG

MGIC Investment

$0.44

WGO

Winnebago Industries

$1.96

CVBF

CVB Financial

$0.37

CP

Canadian Pacific Railway USA

$0.93

MSM

MSC Industrial Direct

$1.27

UFPI

Universal Forest Products

$1.55

FCFS

FirstCash

$0.81

SNBR

Scs Group Plc

$1.43

Thursday (October 21)

IN THE SPOTLIGHT: AUTONATION

The Fort Lauderdale-based automotive retailer AutoNation is expected to report its third-quarter earnings of $4.16 per share, which represents year-over-year growth of about 75% from $2.38 per share seen in the same period a year ago.

In the last four consecutive quarters, on average, the company has delivered an earnings surprise of over 47%. The automotive retail giant would post revenue of $6.5 billion.

“We are optimistic about the trajectory for new CEO, Mike Manley, previously in various leadership roles at FCA and Stellantis where he demonstrated leadership of highly complex organizations going through transformation changes in scale, scope and technology,” noted Adam Jonas, equity analyst at Morgan Stanley.

“Omni-channel strategy unclear and may result in loss of share. For New Vehicles, historically, market share & gross profit per unit have declined. For Used Vehicles, the standalone used car business model was unsuccessful in the late 1990s. The business mix/growth/margins are similar to the other traditional auto dealers, and the stock trades at a discount to its historical average and vs the dealer average.”

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

Ticker

Company

EPS Forecast

CROX

Crocs

$1.84

IQV

IQVIA Holdings Inc

$2.12

WAL

Western Alliance Bancorporation

$2.23

PSMT

PriceSmart

$0.73

SIVB

SVB Financial

$5.53

OZK

Bank Ozk

$0.97

CE

Celanese

$4.73

FFBC

First Financial Bancorp

$0.52

INTC

Intel

$1.11

TPH

Tri Pointe Homes

$0.91

OLN

Olin

$1.98

WRB

W.R. Berkley

$0.95

CSL

Carlisle Companies

$2.75

SNAP

Snap

-$0.10

MAT

Mattel

$0.72

VICR

Vicor

$0.46

CMG

Chipotle Mexican Grill

$6.30

ASB

Associated Banc

$0.44

INDB

Independent Bank

$1.02

GBCI

Glacier Bancorp

$0.71

SAP

SAP

$1.68

LUV

Southwest Airlines

-$0.27

VLO

Valero Energy

$0.86

WHR

Whirlpool

$6.11

PBCT

People’s United Financial

$0.33

AAL

American Airlines

-$1.09

FCX

Freeport-McMoran

$0.82

ALK

Alaska Air

$1.05

GPC

Genuine Parts

$1.64

AN

AutoNation

$4.16

SASR

Sandy Spring Bancorp

$1.09

ABB

ABB

$0.37

BCS

Barclays

$0.37

ATLCY

Atlas Copco ADR

$0.47

DHR

Danaher

$2.14

FAF

First American Financial

$1.82

BKU

BankUnited

$0.87

MMC

Marsh & McLennan Companies

$1.00

IPG

Interpublic Of Companies

$0.49

T

AT&T

$0.78

ALLY

Ally Financial

$1.95

WBS

Webster Financial

$1.08

NUE

Nucor

$6.93

UNP

Union Pacific

$2.49

EEFT

Euronet Worldwide

$1.42

TRN

Trinity Industries

$0.18

SAFE

3 Sixty Risk

$0.35

GATX

GATX Corp

$1.07

KEY

KEY

$0.56

RCI

Rogers Communications USA

$0.81

PPBI

Pacific Premier Bancorp

$0.82

EWBC

East West Bancorp

$1.51

BX

Blackstone

$0.89

POOL

Pool

$3.85

DGX

Quest Diagnostics

$2.71

ALLE

Allegion

$1.30

HOMB

Home Bancshares

$0.44

TSCO

Tractor Supply

$1.64

SNA

Snap-On

$3.37

SON

Sonoco Products

$0.90

WSFS

Wsfs Financial

$0.88

RHI

Robert Half International

$1.40

Friday (October 22)

IN THE SPOTLIGHT: HONEYWELL INTERNATIONAL

The company which manufactures parts for planes made by Boeing and Airbus SE, Honeywell, is expected to report its third-quarter earnings of $1.99 per share, which represents year-over-year growth of about 28% from $1.56 per share seen in the same quarter a year ago.

In the last four consecutive quarters, on average, the company has delivered an earnings surprise of about 5%. The Charlotte, North Carolina-based company would post revenue growth of about 12% to $8.7 billion.

Last week, the company lifted its guidance for business jet deliveries and said the industry has almost completely shaken off the effects of the COVID-19 pandemic.

The worldwide technology and manufacturing company in its 30th annual Global Business Aviation Outlook forecasts up to 7,400 new business jet deliveries worth $238 billion from 2022 to 2031, up 1% in deliveries from the same 10-year forecast a year ago.

“We think that Honeywell (HON) stock currently is a better pick compared to Rockwell Automation stock, despite Rockwell’s revenue growing at a faster pace over the recent years. Honeywell trades at about 4.4xtrailing revenues, compared to 5.1x for Rockwell. Although both the companies saw a decline in revenue due to the pandemic, Rockwell has seen a sharp recovery aided by new orders and impact of ASEM, Kalypso, and Fiix acquisitions,” noted equity analysts at TREFIS.

Honeywell, on the other hand, is still seeing slower revenue growth, primarily due to its exposure to the aerospace segment, which was one of the worst-hit businesses during the pandemic. However, there is more to the comparison. Let’s step back to look at the fuller picture of the relative valuation of the two companies by looking at historical revenue growth as well as operating margin growth.”

TAKE A LOOK AT OUR EARNINGS CALENDAR FOR THE FULL RELEASES FOR THE OCTOBER 22

Ticker

Company

EPS Forecast

VFC

VF

$1.16

GNTX

Gentex

$0.40

SAM

Boston Beer

$4.26

IHG

Intercontinental Hotels

$0.20

ALV

Autoliv

$0.82

AXP

American Express

$1.76

SLB

Schlumberger

$0.35

ROP

Roper Industries

$3.83

HCA

HCA

$3.96

CLF

Cliffs Natural Resources

$2.21

HON

Honeywell International

$1.99

RF

Regions Financial

$0.53

STX

Seagate Technology

$2.21

AIMC

Altra Industrial Motion

$0.82

 

This article was originally posted on FX Empire

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