Earnings Week Ahead: NXP Semiconductors, Pfizer, Ferrari, Expedia and Moderna in Focus

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Tuesday (November 2)

IN THE SPOTLIGHT: PFIZER, FERRARI

PFIZER: The world’s largest pharmaceutical giant is expected to report a profit of $1.08 in the third quarter, which represents year-over-year growth of about 50% from $0.72 per share seen in the same period a year ago. The pharmaceutical company, which ranked 64th on the 2020 Fortune 500 list of the largest U.S. corporations by total revenue, will report revenue of $22.7 billion, up nearly 90% from the same period a year ago.

Pfizer’s revenue and earnings have both reached new highs due to strong sales of its Coronavirus vaccine. Orders of coronavirus vaccines have continued to flood-in this year, which has led the company to upgrade its guidance multiple times.

According to the company’s latest quarterly update back in July, it expects revenue of $78.0 billion to $80.0 billion with adjusted earnings per share of $3.95 to $4.05. That would be a significant improvement from the $41.9 billion revenue and $2.22 EPS the company generated in 2020.

“We project solid growth prospects, and the company’s COVID vaccine offers significant accretion potential in 2021 and 2022. But we expect COVID vaccine sales and profits to decline significantly in 2023+,” noted Matthew Harrison, equity analyst at Morgan Stanley.

Pfizer’s dividend is expected to continue to increases at current level despite Viatris’ dividend payment. Lack of clarity in near to mid-term pipeline potential. Pipeline execution and M&A will be key to investor perception, given late-decade patent expiration exposure.”

FERRARI: The luxury sports car maker is expected to report earnings of $1.19 per share in the third quarter, representing a nearly 30% increase from $0.92 per share seen a year earlier. The company, known for its prancing horse logo, would post revenue growth of over 21% to around $1.3 billion.

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Wednesday (November 3)

Thursday (November 4)

IN THE SPOTLIGHT: EXPEDIA, MODERNA

EXPEDIA: The online travel shopping company would post its third-quarter earnings of $1.68 per share, which represents year-over-year growth of over 800% from a loss of -$0.22 per share seen in the same quarter a year ago. The Bellevue, Washington would post revenue growth of about 84% to around $2.8 billion.

“We see a favorable Expedia (EXPE) risk/reward given our expectation for a U-shaped room night decline and recovery as we see online travel room night growth returning to positive growth in ’21,” noted Brian Nowak, equity analyst at Morgan Stanley.

“We are bullish about EXPE’s recent strategic investments to increase its global property supply, invest in VRBO, and improve performance marketing and see these leading to faster long-term room night growth. While these investments are likely the correct long-term strategies for growth, we see higher execution risk, longer payback and more near-term margin pressure.”

MODERNA: The biotech company focused on drug discovery, is expected to report its third-quarter earnings of $9.01 per share, which represents year-over-year growth of over 1,600% from a loss of -$0.53 per share seen in the same period a year ago. The Massachusetts-based biotechnology company’s revenue would post revenue growth of 3,500% to around $6.09 billion.

“We are Equal-weight Moderna. While we believe there is long-term upside for Moderna, we believe the significant valuation increase associated with the success of the COVID-19 vaccine limits the near-term upside,” noted Matthew Harrison, equity analyst at Morgan Stanley.

“The company has taken an industrialized approach to developing mRNA based therapeutics and has rapidly generated a broad pipeline of 21 programs, 11 of which have entered clinical development. We believe Moderna’s mRNA drug development platform is more diversified and scalable compared with competitors, and is validated through broad partnerships with Merck and AstraZeneca. We see vaccines and rare diseases as the key valuation drivers of the company.”

TAKE A LOOK AT OUR EARNINGS CALENDAR FOR THE FULL RELEASES FOR THE NOVEMBER 4

Friday (November 5)

 

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