Thu Earnings Watch: Intel, Coke, Danaher & Union Pacific...

Equities 2 minutes to read

Kay Van-Petersen

Global Macro Strategist

Summary:  Thu Earnings Watch: We take a preview of the likes of the tech chip-maker Intel [INTC], the consumer focused Coca-Cola [KO], the medical equipment & devices maker Danaher [DHR] & of course being fan of all things infra-industrials related, the rail company Union Pacific [UNP].


(These are solely the views & opinions of KVP, & do not constitute any trade or investment recommendations. By the time you synthesize this, things may have changed.)

Thu Earnings Watch:  Intel, Coke, Danaher & Union Pacific... 

 

INTC: $56.54 Last, $228 bn Mkt Cap, -11% YTD,  P/E 11, 3Q Est. +$1.10 EPS, Rev $18.2bn

  • One of the darlings of the dot.com boom that is still going strong, Intel [INTC] as one of the world’s largest chip makers at $230bn mkt cap, should be reporting after the US market close today.
  • The 12m consensus price target is c. $56.54, in-line with the stocks lvl of $53.50. The analyst price target range is $42 to $90. There are c. 30% buys in the name, vs. 25% sells with the balance being holds at 45%.
  • The name is c. -11% YTD, with a c. +24% jump from the Mar lows of $43.09.
  • The stock has not recovered to its pre +$60 lvl since the last earnings report.  

  •  Intel’s 1yr earnings growth are expected to be -2.3% for 2021 (-0.9% for 2020 ).
  • For current quarter earnings, +$1.10 EPS is expected vs. revenues of $18.2bn.
  • As a tech name, it may come as a surprise to some that Intel has an indicative dividend yield of c. 2.5%, that has been growing at 6-7% on avg, over the last 5yrs.
  • Link to last quarterly report

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KO: $49.99 Last, $215 bn Mkt Cap, -10% YTD,  P/E 24, 3Q Est. +$0.465 EPS, Rev $8.4bn

  • The global brand Coca-Cola is one of the most well-known across the world. The $215bn mkt cap & soft drinks company – a long-term strategic holding of Warren Buffet, Berkshire owns just under 10% - is expected to have revenues of $8.4bn for the quarter.
  • Similar to a number of companies that have already reported, the uptick in economic activity in 3Q likely helped Coke in North America & Europe, with the emerging markets likely being a mixed bag to negative skew.
  • With US 10yrs rates at 0.81% & even 30yr bond yielding 1.62%, this blue chip's dividend of 3.38% that has been growing at just under 5% over the last 5yrs is notable. I.e. the div. on Coca-Cola is likely a lot safer than the c. 7-8% div. on energy etf XLE.   
  • The 12m consensus price target is c. $54.70, in a +/- 10% range of the current c. $50 handle of the stock. The analyst price target range is $49 to $61. There are c. 83% buys in the name, vs. 0% sells & 17% holds.
  • The name is c. -10% YTD, with a c. +40% jump from the Mar lows of $35.65.
  • Coke’s 1yr earnings growth are expected to be +14% for 2021 (-14% for 2020 year).
  • For current quarter earnings, +$0.465 EPS is expected vs. revenues of $8.4bn.
  • Link to the 2Q Earnings Call

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DHR: $226.55 Last, $160 bn Mkt Cap, +48% YTD,  P/E 35, 3Q Est. +$1.363 EPS, Rev $5.5bn

  • New one for KVP, the $160bn Danaher is medical equipment & devices focused company (with also an industrials arm), that is almost up +100% from the lows of the Mar sell-off. From their website:
  • Danaher is a global science and technology innovator committed to helping customers solve complex challenges and improving quality of life around the world. Our trusted brands hold unparalleled leadership positions in diagnostics, life sciences, and environmental and applied solutions. With more than 20 operating companies, our globally diverse team of 59,000 associates is united by a shared purpose: to help realize life’s potential
  • The 12m consensus price target is c. $220, in a +/- 10% range of the current $226 handle of the stock. The analyst price target range is $138 to $254. There are c. 87% buys in the name, vs. 4% sells & 9% holds.
  • The name is c. +48% YTD, with a c. +92% jump from the Mar lows of $119.20. The stock chart does not look bearish in anyway. Bulls central?
  • Danaher’s 1yr erns growth are expected to be +18% for 2021 (+25%% for 2020 year).
  • For current quarter earnings, +$1.363 EPS is expected vs. revenues of $5.5bn.
  • Link to the 2Q Earnings Report

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UPC: $199.48 Last, $135 bn Mkt Cap, +10% YTD,  P/E 21, 3Q Est. +$2.052 EPS, Rev $4.9bn

  • As you know we’ve been talking about infra & industrial plays for a few quarters now, so we will be also be monitoring a lot more of these names around earnings season. Union Pacific [UNP] is a rail transportation business with a mkt cap of $135bn, which had sales of c. $22bn for last year.  
  • The 12m consensus price target is c. $209, in a +/- 10% range of the current c. $200 handle of the stock. The analyst price target range is $138 to $254. There are c. 87% buys in the name, vs. 4% sells & 9% holds.
  • The name is c. +10% YTD, with a matching c. +92% jump (like Danaher) from the Mar lows of $103.97. The stock chart does not look bearish in anyway, as its pretty much a story of lower left to upper right. Bulls central?
  • UNP 1yr erns growth are expected to be +18% for 2021 (-5% for 2020 year).
  • For current quarter earnings, +$2.052 EPS is expected vs. revenues of $4.9bn.
  • Link to the 2Q Earnings Report
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KVP

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