Q4 Earnings Season Scorecard and Research Reports for Comcast, Thermo Fisher & Others
Tuesday, February 2, 2021
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Comcast (CMCSA), Thermo Fisher Scientific (TMO) and Philip Morris International (PM). 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
For the 202 S&P 500 members or 40.4% of the index's membership that have reported Q4 results are down -1.7% from the same period last year on -1.8% lower revenues, with 80.2% beating EPS estimates and 77.2% beating revenue estimates. This is better results than we have seen from this group of companies in the first three quarters of 2020.
The overall earnings outlook continues to improve, with estimates for the current period (2021 Q1) and the full year steadily going up.
Comcast shares have outperformed the Zacks Cable Television industry over the past year (+17.5% vs. +11.1%). The Zacks analyst believes that Comcast is experiencing weakness in hospitality and advertising. The company expects Sky’s first quarter revenues to decline slightly year-over-year.
Weakness in film business is also a headwind. Moreover, the balance sheet remains significantly leveraged, which is a concern. Furthermore, Comcast has persistently suffered video-subscriber attrition due to cord-cutting.
However, its fourth-quarter 2020 results were driven by solid growth in high-speed Internet, Business Services, Wireless and advertising segments. Coronavirus has been a tailwind to Comcast’s broadband and wireless businesses. The growth in advertising revenues reflected an increase in political advertising revenues.
(You can read the full research report on Comcast here >>>)
Shares of Thermo Fisher have gained +23% in the last six months against the Zacks Medical Instruments industry’s gain of +7.3%. The Zacks analyst believes that Thermo Fisher has been expanding inorganic growth profile with several takeovers including Advanced Bioprocessing buyout from BD and Patheon.
In terms of end market, pharma and biotech registered growth in the fourth quarter of 2020 on the back of robust performance in bioproduction and pharma services. In diagnostics and healthcare, the company experienced exceptionally high demand for COVID-19 testing.
Also, the company’s strong capital structure is encouraging. However, the coronavirus outbreak has massively disrupted the global supply chain. Foreign currency fluctuations and competitive landscape are major downsides.
(You can read the full research report on Thermo Fisher here >>>)
Philip Morris shares have gained +10.1% over the past three months against the Zacks Tobacco industry’s rise of +10.6%. The Zacks analyst believes that the company has long been benefiting from its pricing power, which continued to aid its third-quarter 2020 results.
Also, management raised its earnings guidance for 2020 on the back of improved shipment volume trends, though the latter is still expected to decline. However, the management does not expect a near-term recovery in the duty-free business due to travel-related uncertainties amid the pandemic.
Also, a delay in minimum price enforcement in Indonesia is a concern. This apart, cigarette volumes have been soft for a while due to rising health consciousness and stern regulations. All said, revenues are likely to fall in 2020. Nonetheless, strength in RRPs, especially IQOS, is expected to offer respite.
(You can read the full research report on Philip Morris here >>>)
Other noteworthy reports we are featuring today include McDonald's (MCD), Morgan Stanley (MS) and Zoom Video (ZM).
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Today's Must Read
High Speed Internet Subscriber Gain Benefits Comcast (CMCSA)
COVID-19 Test Sales, End Market Growth Aid Thermo Fisher (TMO)
Pricing Aids Phillip Morris (PM), Travel Restrictions Hurt
Featured Reports
Digitalization to Aid McDonald's (MCD), Dismal Comps a Worry
Per the Zacks analyst, McDonald's focus on drive-thru, delivery & take-away bode well. Drive-thru now accounts for approximately 90% of sales.
Opportunistic Buyouts to Support Morgan Stanley (MS) Profits
Per the Zacks analyst, inorganic expansion efforts with an aim to focus on less capital-markets dependent operations will aid Morgan Stanley's financials in the quarters ahead.
Zoom (ZM) Rides on Work-From-Home & Online Learning Wave
Per the Zacks analyst, Zoom Video is benefiting from the coronavirus-induced remote working and Internet-based education wave.
Business Diversification & Cost Control Benefits Goldman (GS)
Per Zacks analyst, the key source of Goldman's earnings stability is business diversification.
Micron (MU) Benefits from Growing Memory-Chip Demand
Per the Zacks analyst, Micron is growing on solid memory-chip demand from PC manufacturers and data-center operators.
High Demand for SUVs & Cost Cut Measures to Aid Ford (F)
Surging demand for Ford's F-series trucks and SUV models will likely boost the firm's top and bottom lines in the days to come, per the Zacks analyst.
Pioneer Natural (PXD) To Gain From Massive Permian Presence
The Zacks analyst expects Pioneer Natural to receive incremental cash flows from its rising foothold in the oil-rich Permian Basin.
New Upgrades
Harley-Davidson (HOG) Rides on 'Rewire' Turnaround Plan
The Zacks analyst appreciates Harley-Davidson's 'Rewire' strategy aimed at rebranding the firm as more millennial friendly as well as generating substantial costs savings.
US Cellular (USM) Rides on 5G Network Modernization Efforts
Per the Zacks analyst, U.S. Cellular continues its network modernization program, adding capacity and speed while launching 5G services commercially and VoLTE across diverse markets.
Inter Parfums (IPAR) Likely to Gain on Cost-Cutting Efforts
Per the Zacks analyst, Inter Parfums' cost-containment efforts undertaken at the start of coronavirus outbreak are yielding.
New Downgrades
Biosimilar Competition for Key Drugs Weigh on Roche (RHHBY)
Per the Zacks analyst, disruptions to the COVID-19 pandemic and biosimilar competition for Roche's key drugs continue to weigh on the overall performance.
High Costs Weigh on Encompass Health's (EHC) Bottom Line
Per the Zacks analyst, high labor cost and increase in development costs are driving up overall costs which weighs on the company's bottomline.
Weak Market Demand & High Debt Hurt Cimpress (CMPR)
Per the Zacks analyst, Cimpress is struggling with coronavirus outbreak-led low demand environment across its end-markets. In addition, high debt level remains concerning for the company.
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Zoom Video Communications, Inc. (ZM) : Free Stock Analysis Report
Thermo Fisher Scientific Inc. (TMO) : Free Stock Analysis Report
Philip Morris International Inc. (PM) : Free Stock Analysis Report
McDonalds Corporation (MCD) : Free Stock Analysis Report
Comcast Corporation (CMCSA) : Free Stock Analysis Report
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