In the second week of earnings reports, investors will be looking at these companies individually and as a measure of the overall strength of the economy. Here is an earnings preview for the following companies, Caterpillar Inc. (NYSE:CAT), Halliburton Company (NYSE:HAL), Hasbro, Inc. (NASDAQ:HAS), Texas Instruments Incorporated (NASDAQ:TXN), and Netflix, Inc. (NASDAQ:NFLX).
Caterpillar Inc. (NYSE:CAT):
Electron Capital Partners' flagship Electron Global Fund returned 5.1% in the first quarter of 2021, outperforming its benchmark, the MSCI World Utilities Index by 5.2%. Q1 2021 hedge fund letters, conferences and more According to a copy of the fund's first-quarter letter to investors, the average net exposure during the quarter was 43.0%. At the Read More
With increasing signs of slowdown in the mining industry, Caterpillar Inc. (NYSE:CAT) expectations have been falling in line with analysts predictions. These lowered expectations have been made apparent by the announced layoffs of hundreds in factories both in the Midwest as well as overseas.
Analysts are expecting a profit of $1.36 per share, on revenue of $13.79 billion. Analysts expectations for the quarter have been sliding lower in recent weeks. Consensus estimates had suggested that a profit of $1.80 was not out of line.
Present Wall Street estimates reflect a 43.5 percent decline from the year-ago quarter, when the company reported earnings of $2.37 per share.
Halliburton Company (NYSE:HAL):
Halliburton Company (NYSE:HAL) is well positioned in growing markets and should benefit from its focus on cutting costs and becoming more efficient in the past year. Halliburton Company (NYSE:HAL) has also beaten earnings estimates in the three of the last four quarters.
Analysts are expecting Halliburton to come in Monday with earnings of 58 cents per share, 34.8 percent less than a year ago when it reported earnings of 89 cents per share. Revenue is expected to beat the year-earlier total of $6.87 billion by 0.3 percent, finishing at $6.89 billion for the quarter. For the year, revenue is projected to come in at $29.59 billion.
While a majority of analysts still rate Halliburton as a buy, The Street has been cooling on the company in the weeks leading up to Monday’s announcement.
One of the reasons that analysts remain optimistic is the average 3 year revenue growth of 24.8 percent which is well above the industry average of 6.5 percent.
Hasbro, Inc. (NASDAQ:HAS):
After Mattel announced first-quarter net income that more than quadrupled the year prior’s numbers, eyes will shift to Hasbro, Inc. (NASDAQ:HAS) to see if Mattel’s numbers are indicative of the industry as a whole. Hasbro, Inc. (NASDAQ:HAS) is enjoying its strong product line-up, key licensed brands and positive strategic partnerships with several gaming companies.
Analysts are eying a revenue decrease of 1.6 percent year-over-year to $638.8 million for the quarter, after being $648.9 million a year ago. For the year, revenue is expected to come in at $4.09 billion. Earnings per share are a consensus $0.03, though many are suggesting that Hasbro will beat this number when they announce on Monday given its #3 Zack’s ranking.
Texas Instruments Incorporated (NASDAQ:TXN):
The biggest question for investors is whether the aggressive move away from smartphone and tablet chips into analog semiconductor and embedded processor segments will succeed.
Although Texas Instruments Incorporated (NASDAQ:TXN) reported profit of 32 cents a year ago, the consensus estimate calls for earnings per share of 31 cents when Texas Instruments reports on Monday.
Analysts are predicting earnings of $1.79 per share for the year while suggesting that revenue will fall 8.7 percent year-over-year to $2.85 billion for the quarter, it was $3.12 billion a year ago. For the year, revenue is projected to finish at $12.17 billion.
Texas Instruments Incorporated (NASDAQ:TXN) has enjoyed profitability for the last consecutive eight quarters despite the fact that income has fallen year-over-year by an average of 18.7 percent in the last four quarters.
Netflix, Inc. (NASDAQ:NFLX):
Netflix, Inc. (NASDAQ:NFLX) along with Apple Inc. (NASDAQ:AAPL), will be one of the most anticipated earnings reports next week. Its shares are up 64 percent since they last reported earnings and expectations remain high.
Analysts are expecting profit of 18 cents a share compared to a 6 cent loss in last years comparative quarter. For the year, most are expecting earnings of $1.17 per share. Revenue is projected to beat the year-earlier total of $869.8 million by 17.3 percent, coming in at $1.02 billion for the quarter. For the year, revenue is expected to approach in at $4.3 billion.
“The Death of the PC” coupled with Netflix, Inc. (NASDAQ:NFLX)’s content advantage in the U.S. and expansion in international markets, should continue to drive subscriber growth. It’s addition of original programming may continue to drive subscription momentum.