Quarterly earnings reports are a good periodical indicator of a company’s financial strength. Their business performance throughout the last completed quarter gets reflected in a company’s financial statements for the quarter…
While financials are an important aspect of a business that investors consider before making investment decisions, many companies provide guidance about their future earnings potential as well. This is another important factor investors should consider as well. As a result, quarterly reports can drive a company’s stock price. Quite naturally, better-than-expected quarterly numbers and improved forecasts usually translate into price gains for the stock.
In October, several major companies are scheduled to announce their results for the quarter. These quarterly results are especially important this year as they are expected to shed light on how companies adjusted their business models to operate in the “new-normal.” This is something that could determine the performance of their stocks in the final months of the year.
Major companies such as Johnson & Johnson, Inc. (JNJ), UnitedHealth Group, Inc. (UNH), Wells Fargo & Company (WFC), and Delta Air Lines, Inc. (DAL) are scheduled to announce their earnings this week. These reports will help investors make key decisions regarding their portfolios and shape their outlook on the respective industries as a whole.
Johnson & Johnson, Inc. (JNJ)
JNJ develops, manufactures, and markets a variety of products for healthcare. The company primarily operates in the consumer, pharmaceutical, and medical devices segment. JNJ’s brands include Listerine, Splenda, Pepcid, Neutrogena, and more. JNJ’s stock has gained 3.5% so far this year.
JNJ is scheduled to report its third quarter earnings results on October 13th. The company’s revenue is estimated to decline 2.9% to $20.1 billion in the third quarter and increase 3.5% in the following quarter. The company’s EPS is expected to decline 7.5% to $1.96 in the third quarter and increase 3.2% next quarter.
JNJ’s revenue is expected to decline due to the continued spread of the coronavirus and the resultant lower consumer spending. This has especially affected the company’s skin, health, and beauty care products. The sale of medical devices is also expected to have been negatively affected due to deferral of medical procedures caused by the pandemic.
However, JNJ has several drugs in the pipeline which could lead to the future growth of the company. The company has received regulatory approval for Zabdeno, a preventive Ebola vaccine, and Tremfya, for the treatment of Active Psoriatic Arthritis. The company also has a coronavirus vaccine candidate which is undergoing trials.
How does JNJ stack up for the POWR Ratings?
A for Trade Grade
A for Buy & Hold Grade
A for Peer Grade
B for Industry Grade
A for Overall POWR Rating
The stock is also ranked #10 out of 239 stocks in the Medical – Pharmaceuticals industry.
UnitedHealth Group, Inc. (UNH)
UNH operates as a well-being and health company. The company operates two online platforms which are Optum and UnitedHealthcare, through which it provides healthcare products and insurance in various markets. UNH’s stock has gained 11.5% so far this year.
UNH scheduled to report its third quarter earnings results on October 14th. UNH’s revenue is estimated to see growth of 5.9% in the third quarter to reach $63.9 billion and 7.2% in the fourth quarter. The company’s EPS is expected to decline 20.4% to $3.09 in the third quarter and 9.7% this year.
The company has recently announced…
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