The Zacks Analyst Blog Highlights Roche, Fomento Economico Mexicano, Advanced Micro Devices, Union Pacific and Mondelez International
For Immediate Release
Chicago, IL – July 19, 2023 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Roche RHHBY, Fomento Económico Mexicano, FMX, Advanced Micro Devices AMD, Union Pacific Corp. UNP and Mondelez International, Inc. MDLZ.
Here are highlights from Tuesday’s Analyst Blog:
Q2 Earnings Scorecard and Analyst Reports for Roche, AMD and Others
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features a real-time update on the Q2 earnings season and new research reports on 16 major stocks, including Roche, Fomento Económico Mexicano and Advanced Micro Devices. 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 >>>
Q2 Earnings Season Scorecard
Including this morning's reports from Bank of America, Morgan Stanely and others, we now have Q2 results from 38 S&P 500 members. Total earnings for these 38 index members are up +5.6% from the same period last year on +8.3% higher revenues, with 86.8% beating EPS estimates and 68.4% beating revenue estimates.
This is better than expected performance for this group of 38 S&P 500 members, with the EPS beats percentage of 86.8% the highest for this group in the last 20 quarters. This is notable as unlike many other recent quarters estimates for Q2 hadn't dropped that much.
Looking at Q2 as a whole, S&P 500 earnings are expected to decline -9.4% from the same period last year on -0.5% lower revenues.
A big part of the declines are due to the Energy sector whose Q2 earnings and revenues are expected to decline -48.8% and -27.8%, respectively. Excluding the Energy sector drag, Q2 earnings for the rest of the index would be down only -3.5% on +3% higher revenues.
While index earnings are currently expected to modestly decline in 2023 Q3 as well, the growth pace would be positive had it not been for the Energy sector drag.
Today's Featured Analyst Reports
Shares of Roche Holding have modestly outperformed the Zacks Large Cap Pharmaceuticals industry over the year-to-date period (+1.6% vs. +0.2%). Company’s new drugs, namely Ocrevus, Hemlibra, Evrysdi and Tecentriq, recorded growth and should maintain momentum. The uptake of the new eye drug Vabysmo (launched at the beginning of 2022) has been outstanding and is already one of the top growth drivers for the company.
The company’s efforts to develop new drugs to combat the decline in legacy drugs are encouraging. However, performance so far in the year has been ordinary, as significantly lower COVID-19 product sales have impacted the top line.
Sales are likely to be impacted further due to the expected sharp decline in sales of COVID-19 products of roughly CHF 5 billion. Also, competition from biosimilars for established cancer medicines like Avastin, MabThera/Rituxan and Herceptin continues to drag down sales.
(You can read the full research report on Roche Holding here >>>)
Shares of Fomento Económico Mexicano have outperformed the Zacks Beverages - Soft drinks industry over the past year (+83.3% vs. +14.3%). The company’s top and bottom-line improved year over year on strength across segments and improved operating income.
Revenues improved on gains across all business units resulting from effective growth strategies and robust demand across markets. The company’s digital initiatives and business expansion endeavors have also been aiding results. Its efforts to expand in the U.S. specialized distribution segment bodes well. The company displays strong financial flexibility.
However, FEMSA continued to witness operating margin decline due to contraction at Proximity, Health and Envoy Solutions divisions. Supply-chain disruptions and higher raw material costs hurt results.
(You can read the full research report on Fomento Economico Mexicano here >>>)
Shares of AMD have outperformed the Zacks Electronics - Semiconductors industry over the year-to-date period (+82.6% vs. +57.4%). The company is witnessing strong demand for its products in industrial, vision and health care, test and emulation, communications, aerospace and defense, and automotive end-markets. Embedded segment reported strong growth.
For the second quarter of 2023, AMD expects to witness growth in Embedded segment, partially offset by a decline in the Client, Gaming and Data Center segments on a year-over-year basis. AMD is benefiting from a strong product portfolio and acquisitions including Xilinx and Pensando, which has diversified its business.
Robust adoption of EPYC processors by North American hyperscalers has been a tailwind. Alliances with Amazon, Microsoft, Baidu and JD.com augment business prospects. However, stiff competition from NVIDIA and Intel is a concern.
(You can read the full research report on AMD here >>>)
Other noteworthy reports we are featuring today are Union Pacific Corp. and Mondelez International, Inc.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Roche Holding AG (RHHBY) : Free Stock Analysis Report
Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report
Union Pacific Corporation (UNP) : Free Stock Analysis Report
Fomento Economico Mexicano S.A.B. de C.V. (FMX) : Free Stock Analysis Report
Mondelez International, Inc. (MDLZ) : Free Stock Analysis Report
