Q4 Earnings – Week
2017-02-12
Based on the earnings release the Q4 season easily
qualifies as the best of the last six years. Despite all turbulence in the
markets, post-US elections volatility, renewed optimism above US corporate
world the higher USD and lower prices of oil are having weaker impact on
corporate profits and revenues. The EBITDA and revenue growth are back to black
and is likely the growth trend will continue well into 2017. But let’s have a
look what names report this week:
AIG – market is
expecting higher profit after not very perfect 2015
PepsiCo – as
for Coca-Cola the stronger USD, recent slowdown and changing underlying
consumers’ behaviour effect the company results. More and more people search
for healthier food and beverages and is also topped from regulation side by few
changes in labelling the products and adding warnings about negative effects of
sugars. On the other hand the higher prices of some of its products and better
demand for healthier products can be supportive. While going into earnings
release bear in mind that company is above its peers in terms of various
metrics. Expectations are for revenue growth of 5% and EPS growth of 9%, both
y/y.
Cisco – the
company seems to have a hard time to turn the business upside down and enter
new but fast growing and profitable business of datacenter and internet of
things playing field, cloud and security. As it is stuck for now to its core traditional
business the revenue is to decline 3% and EPS 2%, both y/y. The comparison with
peers shows us the company is below the average.
Nestle – investors
are curious about new CEO and his direction and focus (nutrition and
pharmaceutical part). All of that will be watched apart from revenue that is
expected to growth 2% y/y and EPS to decline 3% y/y. The company is suffering from an ongoing
slowdown and emerging markets may put additional pressure if the economic
rebound in Q4 was not translated into higher revenue for Nestle. From a
perspective of comparison with its peers, it is worth to look at the company
valuation and price actions (charts) as it has underperformed lately.
GoldCorp – to
report higher profit as the price of gold moved higher
Restaurant Brands
International – new restaurant opening and changes to menus should prompt
the profits higher. Just wondering how the owner of Burger King and Tim Hortons
can lure the customers in other countries.
TMX Group – to
show pick up in profits and revenue from volatile trading across Canadian
equities, derivatives and energy
Teva Pharmaceutical
Industries – to report by has already warned about weaker 2016/2017
results. The generic producers is under heavy load of debt (from Actavis
acquisition), weak US market and some not perfect management decisions.
TransCanada Corp –
markets are expecting better results on higher shipping volumes of gas and oil.
What will not fly by unnoticed will be the update on XL Keystone pipeline.
Hilton Worldwide
Holdings – should benefit form better bookings of more expensive rooms
despite business travel decline
Deere & Co
– lower commodity prices of agricultural products to have negative impact on
company results
Bombardier –
to report smaller loss than last year (USD 673 mln). The impact of CSeries
program still present.
Name
|
Exchange
|
Date
|
Estimated
EPS
|
EPS
growth y/y
|
Estimated
Revenue
|
Noble Energy
|
US
|
Mon
|
-0.10
|
…
|
1,000
|
TMX Group
|
CA
|
Mon
|
1.12
|
…
|
0.184
|
AIG
|
US
|
Tue
|
0.34
|
131.1%
|
12,871
|
Heineken
|
NL
|
Wed
|
1.99
|
8.3%
|
10,477
|
Credit Agricole
|
FR
|
Wed
|
0.22
|
-30.2%
|
4,416
|
Air Liquide
|
FR
|
Wed
|
2.73
|
-2.0%
|
10,426
|
Danone
|
FR
|
Wed
|
1.58
|
…
|
5,410
|
PepsiCo
|
US
|
Wed
|
1.16
|
9.2%
|
19,535
|
Cisco Systems
|
US
|
Wed
|
0.56
|
-1.6%
|
11,534
|
Kraft Heinz
|
US
|
Wed
|
0.88
|
41.8%
|
6,755
|
GoldCorp
|
CA
|
Wed
|
0.13
|
…
|
1,080
|
AirFrance-KLM
|
FR
|
Thu
|
…
|
…
|
…
|
Nestle
|
CH
|
Thu
|
1.74
|
…
|
24,396
|
Schneider Electric
|
FR
|
Thu
|
2.29
|
16.4%
|
12,794
|
TransCanada
|
CA
|
Thu
|
0.72
|
12.7%
|
3,480
|
Charter Communications
|
US
|
Thu
|
1.07
|
185.8%
|
10,229
|
Duke Energy
|
US
|
Thu
|
0.81
|
-6.7%
|
5,892
|
Allianz
|
GE
|
Fri
|
3.66
|
22.8%
|
27,547
|
Enbridge
|
CA
|
Fri
|
0.58
|
20.0%
|
9,584
|
Deere & Co
|
US
|
Fri
|
0.53
|
-34.1%
|
4,675
|
Good luck Champs!
Mr Hawk
DISCLAIMER: This material was created for informational
purposes only and represents the Land of Trading team’s view of the past and
current economic and capital market environment. It is not an investment advice
and should not be viewed that way at all, and the creators of this material
cannot be held liable for any potential losses resulting from trading, where
despite this disclaimer someone would consider this material as an investment
advice. All rights reserved ©2016. Contact: landoftradingATgmail.com
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