It’s a busy week ahead for corporate earnings as Shopify (NYSE: SHOP), Spotify (NYSE: SPOT), Boeing (NYSE: BA), AstraZeneca (NASDAQ: AZN), Pfizer (NYSE: PFE) and much more report.
Here we present a brief overview of some of our earnings picks for the week ahead:
Infosys (NYSE: INFY)
Infosys (NYSE: INFY) reported its Q1 earnings today for the quarter ended June 30, 2022.
The Indian multinational IT company delivered a robust performance in Q1 with Y/Y growth of 21.4% and sequential growth of 5.5% in constant currency. Digital accounted for 61% of overall revenues, growing at 37.5% in constant currency. Net hiring was strong. The operating margin for the quarter was 20%.
Salil Parekh, CEO and MD, said:
Our strong overall performance in Q1 amidst an uncertain economic environment is a testament to our innate resilience as an organization, our industry-leading digital capabilities and continued client-relevance. We continue to gain market share and see a significant pipeline driven by our Cobalt cloud capabilities and differentiated digital value proposition.
We are investing in rapid talent expansion while ensuring rewarding careers for our employees, to better serve evolving market opportunities. This has resulted in a strong performance in Q1 and increase in FY 23 revenue guidance to 14%-16%
For fiscal Q2 ending September 2022, EPS consensus is $0.19, and sales consensus is $4.5bn.
Over the past year, INFY stock has traded between $17.52 and $26.39. Today it’s at $18.88. Year-to-date, the Infosys stock price is down by -25.26%, while the S&P 500 is down -17.4% over the same period.
FactSet analysts have an Overweight rating on INFY stock with a target share price of $22.82.
Polaris Industries (NYSE: PII)
Polaris Industries (NYSE: PII) will report its latest quarterly earnings for Q2 on Tuesday, July 26, 2022. FactSet estimates have an EPS consensus of $2.08 and a sales consensus of $2.17bn.
The company manufactures power sports vehicles, including off-road, on-road, snowmobiles and motorcycles.
Over the past year, Polaris Inc (PII) has traded between $94.24 and $139.79. Year-to-date, the Polaris Inc (PII) stock is up by 3.4%, while the S&P 500 is down -17.4% over the same period.
FactSet analysts have an Overweight rating on PII stock with a target share price of $121.92.
Polaris continues to face supply chain challenges and projects full-year EPS of $10.10 to $10.40 (up 11% to 14%) and full-year revenues of $9.2bn to $9.4bn (up 12% to 15%).
PII stock has a price-to-earnings ratio (P/E) of 26.8. Its price-to-book-value (P/BV) is 8, which is well above the industry average of 1.1. PII stock comes with a dividend yield of 1.3%.
Otis Worldwide Corporation (NYSE: OTIS)
Elevator manufacturer Otis Worldwide (NYSE: OTIS) reports its Q2 results on Wednesday, July 27, 2022. According to FactSet estimates, EPS consensus is $0.79, and sales consensus is $3.5bn.
Over the past year, Otis Worldwide Corp (OTIS) has traded between $66.97 and $92.84. Year-to-date, the Otis Worldwide Corp (OTIS) stock is down by -15.98%, while the S&P 500 is -17.4% over the same period.
FactSet analysts have an Overweight rating on OTIS stock with a target share price of $80.
At the end of June, Otis appointed Anurag Maheshwari as Executive VP and CFO, reporting directly to Judy Marks, the company Chair, CEO & President.
Otis is the world's leading elevator and escalator manufacturing, installation, and service company. Moving 2 billion people daily, Otis maintains more than 2.1 million customer units worldwide, thus boasting the industry's most extensive service portfolio.
OTIS stock has a price-to-earnings ratio (P/E) of 24.7. Its price-to-sales value (P/S) is 2.1, which is above the industry average of 1.3. [TICK] stock comes with a dividend yield of 1.6%.
Valero Energy Corporation (NYSE: VLO)
Valero Energy (NYSE: VLO) is due to report its quarterly earnings on Thursday, July 28, 2022. FactSet estimates state an EPS consensus of $9.42 and sales consensus of $40.9bn.
Over the past year, Valero Energy Corporation (VLO) has traded between $58.85 and $146.81.
Year-to-date, the Valero Energy Corporation (VLO) stock is up by 34.85%, while the S&P 500 is down -17.4% over the same period.
FactSet analysts have an Overweight rating on VLO stock with a target share price of $139.88.
According to FactSet, the Energy sector reports the highest Y/Y earnings growth of all eleven S&P sectors at 265.3%. This is mainly due to higher Y/Y oil prices, as the average price of oil in Q2 2022 ($108.52) was 64% above the average price for oil in Q2 2021 ($66.17).
Booz Allen Hamilton Holding Corporation (NYSE: BAH)
Booz Allen Hamilton Holding (NYSE: BAH) is due to report its latest earnings on Friday, July 29, 2022. FactSet Estimates have an EPS consensus of $1.06 on BAH stock and a sales consensus of $2.1bn.
Booz Allen has been working closely with the federal government to establish and refine the new CMMC framework. CMMC is a Department of Defense program built to protect the Defense Industrial Base (DIB) from increasingly frequent and complex cyber-attacks.
Booz Allen is a trusted advisor to the DoD, with experts at the Office of the Under Secretary of Defense for Acquisition & Sustainment, the Pentagon's CMMC epicenter, to help guide its rollout. Booz Allen has partnered with the DoD for the past several years to guide the CMMC program and subsequent rollout.
Over the past year, the Booz Allen Hamilton stock price has traded between $69.68 and $94.17.
Year-to-date, the BAH share price is up by 6.36%, while the S&P 500 is down -17.4% over the same period.
FactSet analysts have an Overweight rating on BAH stock with a target share price of $95.
