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

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

-

 

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

-

 

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

-

 

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
-

 

Start-to-End = Gratitude + Integrity + Vision + Tenacity | Process > Outcome | Sizing > Idea

This is the way 

KVP

Disclaimer

The Saxo Group entities each provide execution-only service and access to Analysis permitting a person to view and/or use content available on or via the website is not intended to and does not change or expand on this. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to Saxo News & Research and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Group by which access to Saxo News & Research is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Saxo News & Research or as a result of the use of the Saxo News & Research. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. Saxo News & Research does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws.

Please read our disclaimers:
- Notification on Non-Independent Investment Research (https://www.home.saxo/legal/niird/notification)
- Full disclaimer (https://www.home.saxo/en-sg/legal/disclaimer/saxo-disclaimer)

None of the information contained here constitutes an offer to purchase or sell a financial instrument, or to make any investments. Saxo Markets does not take into account your personal investment objectives or financial situation and makes no representation and assumes no liability as to the accuracy or completeness of the information nor for any loss arising from any investment made in reliance of this presentation. Any opinions made are subject to change and may be personal to the author. These may not necessarily reflect the opinion of Saxo Capital Markets or its affiliates.

Saxo Markets
Most of our staff in Singapore are working from home to help limit the spread of the coronavirus. We remain at your service on the details below. Thank you for your understanding.

Contact Saxo

Select region

Singapore
Singapore

Saxo Capital Markets Pte Ltd ('Saxo Markets') is a company authorised and regulated by the Monetary Authority of Singapore (MAS) [Co. Reg. No.: 200601141M ] and is a wholly owned subsidiary of Saxo Bank A/S, headquartered in Denmark. Please refer to our General Business Terms & Risk Warning to consider whether acquiring or continuing to hold financial products is suitable for you, prior to opening an account and investing in a financial product.

Trading in financial instruments carries various risks, and is not suitable for all investors. Please seek expert advice, and always ensure that you fully understand these risks before trading. Trading in leveraged products such as Margin FX products may result in your losses exceeding your initial deposits. Saxo Markets does not provide financial advice, any information available on this website is ‘general’ in nature and for informational purposes only. Saxo Markets does not take into account an individual’s needs, objectives or financial situation.

The Saxo trading platform has received numerous awards and recognition. For details of these awards and information on awards visit www.home.saxo/en-sg/about-us/awards.

The information or the products and services referred to on this website may be accessed worldwide, however is only intended for distribution to and use by recipients located in countries where such use does not constitute a violation of applicable legislation or regulations. Products and Services offered on this website are not intended for residents of the United States, Malaysia and Japan. Please click here to view our full disclaimer.

This advertisement has not been reviewed by the Monetary Authority of Singapore.