Earnings week ahead: PepsiCo, Disney, BP, Chipotle and more
February’s busy slate of earnings continues next week, with sector leaders in semiconductors, consumer packaged goods, entertainment and restaurants among the reports due out.
The week begins with video game titans Take-Two Interactive (TTWO) and Activision Blizzard (ATVI) releasing reports alongside semiconductor stalwarts Skyworks (SWKS) and ON Semiconductor. These will be followed by mid-week headliners including Chipotle Mexican Grill (NYSE:CMG), Walt Disney (NYSE:DIS), and Uber Technologies (UBER). Rounding out the week on Thursday and Friday, PepsiCo (NASDAQ:PEP), PayPal (PYPL), and Philip Morris (PM) are likely to be among the most closely watched reports.
Below is a curated list of reports due in the week of February 6 to 10:
Monday, February 6
Activision Blizzard (ATVI)
Video game developer and Microsoft (MSFT) acquisition target Activision Blizzard (ATVI) is due to post its earnings results after the bell on Monday. The stock has traded well below its proposed acquisition price in recent months, with growing debt about the prospects of the deal’s closure amid formal EU objection.
According to Seeking Alpha surveys, EPS estimates have been revised downward 17 times in the 90 days ahead of the earnings results, while revenue estimates have been cut 14 times. The consensus analyst rating on the stock remains a Buy.
- Consensus EPS Estimates: $1.51
- Consensus Revenue Estimates: $3.18B
- Earnings Insight: Activision Blizzard has beaten EPS estimates 5 of the past 8 quarters and revenue expectations 6 times in that span
ON Semiconductor (ON)
ON Semiconductor (ON) is due to post earnings before the bell on Monday. Shares of the Arizona-based chip company have rocketed over 30% thus far in 2023, extending an over 70% gain from mid-2022. EPS and revenue estimates have been revised upwards 16 times in the 90 days ahead of the earnings result, according to Seeking Alpha surveys.
The stock was selected as a top pick by the Seeking Alpha Quant team at the start of 2023,. “Offering premier intelligent technology for automotive, industrial, and 5G cloud power, ON Semiconductor is paving the way for global lighter and longer-range systems,” Steven Cress, Head of Quantitative Strategies at Seeking Alpha, said. “With tremendous earnings growth, EPS, and fundamentals, consider this stock for a portfolio, especially as it trades at a discount.”
- Consensus EPS Estimates: $1.26
- Consensus Revenue Estimates: $2.08B
- Earnings Insight: ON semiconductor has beaten EPS and revenue expectations in 8 consecutive quarters.
Also reporting: Tyson Foods (TSN), Pinterest (PINS), Take-Two Interactive (TTWO), Cummins (CMI), Spirit Airlines (SAVE), and Skyworks (SWKS)
Tuesday, February 7
Chipotle Mexican Grill (CMG)
Chipotle Mexican Grill (CMG) will post its fourth quarter results after the bell on Tuesday. Shares of the fast food chain have climbed over 20% to start 2023, rebounding from a modest decline in 2022. The stock has remained a popular Buy-rated stock among analysts, per Seeking Alpha surveys. The company has also projected strong growth for 2023, with designs on hiring 15,000 new employees as it doubles its store footprint.
That said, there are some skeptics on Wall Street. “In the near to medium term though, we think it will be harder for the stock to outperform, as we think the concerns about traffic and pricing have merit and will be harder to disprove for several quarters with some further price sensitivity possible, and our top line estimates are below consensus reflecting this,” Morgan Stanley wrote in a recent downgrade to Hold. “Softness spreading to higher end customers and the food delivery channel could be a challenge across fast casual, and might be for CMG as well.”
- Consensus EPS Estimates: $8.90
- Consensus Revenue Estimates: $2.23B
- Earnings Insight: Chipotle has beaten EPS estimates in 7 of the past 8 quarters, missing revenue expectations 3 times in that span
BP is due to post results prior to the bell on Tuesday. Shares of the British oil and gas company have underperformed peers in the past year but have nonetheless risen by double-digits. During the fourth quarter, the company was able to reach a key agreement with striking workers in Rotterdam. The refinery site is the largest for the company in Europe. Also in the quarter, the company inked an MoU to develop a green hydrogen plant in Egypt.
The energy giant has been eager to pursue renewable investments in recent years. However, CEO Bernard Looney has voiced an intention to slow these investments moving forward, per the Wall Street Journal.
- Consensus EPS Estimates” $1.65
- Consensus Revenue Estimates: $59.97B
- Earnings Insight: BP has beaten EPS expectations in 7 of the past 8 quarters
Also reporting: VF Corp. (VFC), Illumina (ILMN), Yum China (YUMC), Centene (CNC), Royal Caribbean (RCL), and Valvoline (VVV)
Wednesday, February 8
The Walt Disney Company (DIS)
The house of mouse is due to post its fiscal first quarter earnings results after the bell on Wednesday. The company ended 2022 with the surprise return of former CEO Bob Iger to replace the short-lived Bob Chapek. To start 2023, Iger has made changes to park policy and outlined plans for in-office work for employees.
However, Nelson Peltz has placed Iger and his board in his crosshairs for an activist campaign. Disney has vehemently opposed Peltz’s efforts, as outlined in company statements.
Elsewhere, the company has seen the latest installment of its Avatar franchise become one of the highest grossing films of all time.
- Consensus EPS Estimates: $0.79
- Consensus Revenue Estimates: $23.27B
- Earnings Insight: Disney has beaten EPS estimates in 5 of the past 8 quarters, while revenue has exceeded estimates 4 times in that span.
Also reporting: Yum! Brands (YUM),CVS Health (CVS), Uber Technologies (UBER), O’Reilly Automotive (ORLY), Emerson (EMR), Bunge (BG), and MGM Resorts (MGM)
Thursday, February 9
PepsiCo Inc. (PEP) is due to post its earnings results prior to the bell on Thursday. Shares of the Purchase, New York-based beverage and snack giant have traded essentially flat over the past year, slightly underperforming the S&P.
During the fourth quarter, the company joined a number of tech companies in laying off white collar workers, per the Wall Street Journal. The company also took delivery of Tesla semi trucks during the quarter. The consensus rating on the stock among sell-side analysts remains a Buy, according to Seeking Alpha surveys.
- Consensus EPS Estimates: $1.65
- Consensus Revenue Estimates: $26.82B
- Earnings Insight: Pepsi has beaten EPS and revenue estimates in 8 consecutive quarters
Philip Morris (PM)
Following a report from key competitor Altria (MO) in the week prior, Philip Morris International (PM) is due to post a quarterly earnings update prior to the market open on Thursday. The cigarette manufacturer backed up its guidance for the quarter as recently as mid-January.
Analysts also anticipate a strong year ahead, aided by the addition of Swedish Match to the portfolio. However, an analysis from Citi suggests that the tobacco giant’s exit from Russia could weigh on results in the near term.
- Consensus EPS Estimates: $1.27
- Consensus Revenue Estimates; $7.54B
- Earnings Insight: Philip Morris has beaten EPS expectations in 8 consecutive quarters, missing revenue estimates once in that span.
Also reporting: Abbvie (ABBV), Toyota Motor Corporation (TM_), Unilever (UL), Paypal (PYPL), Hilton Worldwide (HLT), Kellogg (K), Cloudflare (NET), L’Oreal (OTCPK:LRLCY), Canopy Growth Corporation (CGC), and Astrazeneca (AZN)
Friday, February 10
Newell Brands (NWL)
Newell Brands (NWL), the parent company of Rubbermaid, Coleman products, Yankee Candle, and more, is set to post fourth quarter earnings prior to the market open on Friday. While shares of the consumer-facing conglomerate have fallen over 30% in the past year, the stock has marked an over 20% gain to start 2023.
Ahead of the results, the company moved to trim its office headcount by 13% and reorganize the company structure. New CFO Mark Erceg also began his tenure on January 9.
- Consensus EPS Estimates: $0.11
- Consensus Revenue Estimates: $2.23B
- Earnings Insight: Newell Brands has beaten EPS expectations in 8 consecutive quarters, missing revenue estimates only once in that span.
Also reporting: Magna International (MGA), Spectrum Brands (SPB), and Enbridge (ENB)