Daily Digest:
w/c 17 June 2024: The US data highlight this week is Retail Sales on Tuesday, with global Flash PMI data on Wednesday. Plus on the central bank side we get the RBA, PBoC, SNB and BoE all in play

Weekly US Earnings Outlook from February 6th 2024

Intermediate

The US 2023 fourth-quarter earnings season is in full swing, with 230 S&P 500 companies already reporting. Impressively, 80% of these companies have exceeded Wall Street’s expectations, as reported by LSEG. Last week was extremely busy, seeing the likes of Microsoft and Alphabet earnings Tuesday and Amazon, Apple and Meta reporting Thursday. This week will be much milder in comparison, but still sees the releases of some top firms, of which we will focus on Eli Lilly Tuesday, Walt Disney Wednesday, Philip Morris Thursday and PepsiCo Friday. 

Why are Eli Lilly’s Earnings so Important?

Eli Lilly and Company, often referred to as Lilly, is a global pharmaceutical company renowned for its innovative contributions to the healthcare industry. Established in 1876, the company focuses on developing and delivering breakthrough medicines to address various health challenges, particularly in areas such as diabetes, oncology, and neuroscience. 

Lilly

Eli Lilly’s earnings releases carry significant weight in the financial landscape due to its prominent position in the pharmaceutical sector. As a major player, the company’s financial performance is closely monitored by investors, analysts, and stakeholders, as it provides insights into the pharmaceutical industry’s health, innovation pipeline, and broader economic trends. Eli Lilly’s ability to navigate the complexities of drug development, regulatory processes, and market dynamics makes its earnings reports a key barometer for the health of both the company and the pharmaceutical sector as a whole.

What to expect from Eli Lilly’s Earnings

As Eli Lilly gears up for its upcoming earnings call on Tuesday, February 6th, 2024, market anticipation is high for this pharmaceutical powerhouse. With a current market cap of $626.47 billion, Eli Lilly has been a standout performer in the healthcare sector. Projections for the fourth quarter hint at a robust performance, with an expected earnings per share (EPS) of $2.31 and a forecasted revenue of $8.95 billion, as indicated by investing.com. 

Eli Lilly’s remarkable performance in Q3, surpassing expectations with an adjusted EPS of 10 cents per share against an expected loss of 13 cents per share, further underscores its resilience. This stellar track record, coupled with the company’s strategic positioning in the weight loss drugs space, has contributed to significant stock gains, making Eli Lilly a key player to watch in the upcoming earnings release.

Why are Walt Disney’s Earnings so Important?

Walt Disney, a globally recognized entertainment conglomerate, stands as a prominent force in the media and entertainment industry. Founded by Walt Disney and Roy O. Disney, the company has evolved into a diversified powerhouse, encompassing film studios, theme parks, television networks, and a streaming service. 

Disney’s earnings releases hold immense significance due to the conglomerate’s influence on popular culture and its extensive portfolio of iconic brands such as Disney, Pixar, Marvel, and Star Wars. As a bellwether for the entertainment sector, Disney’s financial performance serves as a barometer for the industry’s health, reflecting trends in consumer spending, content consumption, and the broader economic landscape. Investors and analysts closely monitor Disney’s earnings to gauge its ability to navigate evolving media landscapes, adapt to streaming trends, and maintain its position as a leader in global entertainment.

What to expect from Walt Disney’s Earnings

Walt Disney Co. (DIS) is gearing up to announce its first-quarter fiscal 2024 earnings results on February 7th, with a current market cap of $177.58B. According to investing.com, the Q4 forecast anticipates an earnings per share (EPS) of $0.9966 and revenue of $23.75B. The preceding quarter saw Disney surpass expectations with an EPS of $0.82 against a forecasted $0.71, and revenue reaching $21.24B, slightly below the expected $21.41B. 

Despite a relatively subdued 2023 holiday box office and ongoing challenges with cable cord-cutting, Disney is projected to exhibit modest year-over-year gains, with forecasted net income attributable to the company at $1.82 billion. The upcoming earnings release will be closely watched for insights into Disney’s performance amid industry shifts and its ability to navigate changing consumer behaviours.

Why are Philip Morris’s Earnings so Important?

Philip Morris International (PMI) is a leading multinational tobacco company with a significant global presence. The company is known for its iconic brands, including Marlboro, and operates in diverse markets, providing a range of tobacco and nicotine-containing products. As a major player in the tobacco industry, PMI’s earnings releases are of considerable significance due to the company’s substantial impact on public health, regulatory challenges, and its role in shaping the tobacco landscape.

Philip Morris

The tobacco industry faces continuous scrutiny and regulatory changes, making PMI’s financial performance a key indicator of its ability to navigate challenges such as evolving regulations, changing consumer preferences, and advancements in reduced-risk products. The company’s earnings reports provide insights into its strategies for adapting to a dynamic market, including its efforts to transition to smoke-free alternatives and address public health concerns. Additionally, PMI’s global reach and market influence make its earnings releases essential for investors, policymakers, and public health advocates to gauge the broader trends and developments within the tobacco sector.

What to expect from Philip Morris’s Earnings

Philip Morris International is set to unveil its fourth-quarter earnings on Thursday, February 8th, 2024, providing investors with insights into the performance of the leading tobacco company. With a current market capitalization of $142.87 billion, PMI is expected to report an earnings per share (EPS) of $1.45 for Q4, indicating a 3.6% year-over-year increase. The forecasted Q4 revenue stands at $9.01 billion, reflecting a notable 10% rise from the year-ago quarter. 

In the prior quarter, Philip Morris reported an earnings per share of $1.67, exceeding the forecasted EPS of $1.61. The company’s revenue for the previous quarter amounted to $9.14 billion, slightly below the expected revenue of $9.21 billion. Despite a challenging start to 2024, with PMI’s stock experiencing a -1.17% decline, there is anticipation in the market that the upcoming fourth-quarter earnings report could potentially drive a rebound in the company’s shares.

Why are PepsiCo’s Earnings so Important?

PepsiCo, Inc. is a global food and beverage company renowned for its diverse portfolio of iconic brands. Established in 1965 through the merger of Pepsi-Cola and Frito-Lay, the company has since expanded its offerings to include a wide range of snacks, beverages, and other food products. With popular brands like Pepsi, Mountain Dew, Lay’s, Gatorade, and Tropicana under its umbrella, PepsiCo has a significant presence in the global consumer goods market.

PepsiCo’s earnings releases are highly significant for several reasons. As a major player in the food and beverage industry, the company’s financial performance is closely watched by investors, analysts, and market observers. Given its extensive reach and influence, the company’s ability to adapt to changing market dynamics, introduce innovative products, and navigate challenges in the competitive landscape is critical for understanding the overall health of the consumer goods sector.

What to expect from PepsiCo’s Earnings

As PepsiCo gears up for its upcoming earnings call on Friday, February 9th, market anticipation is high. With a current market capitalization of $237.47 billion, the global food and beverage giant is expected to showcase its financial strength. The forecast for the fourth quarter suggests an earnings per share (EPS) of $1.72, reflecting a 3% growth compared to the prior-year quarter, and a revenue projection of $28.38 billion, according to investing.com. 

In the previous quarter, PepsiCo demonstrated resilience by surpassing expectations with an EPS of $2.25, outperforming the forecasted $2.12, and reporting revenue of $23.45 billion against the expected $23.41 billion. Notably, the company has consistently outperformed earnings expectations, with a 3.7% beat in the last reported quarter and an average earnings surprise of 5.6% over the trailing four quarters. 

Editor

Luke is currently a student in his final year studying A levels in Economics, Maths and Physics at The Bishop’s Stortford High School. He has a strong interest in economics and financial markets,... Continued

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