Yahoo Finance Q1 Earnings Scorecard and Fresh Analyst Reports for Bristol-Myers, Medtronic & Altria Group
Tuesday, April 25, 2023
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features a real-time update on the Q1 earnings season, in addition to new research reports on 16 major stocks, including Bristol-Myers Squibb Company (BMY), Medtronic plc (MDT) and Altria Group, Inc. (MO). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today’s research reports here >>>
Q1 Earnings Season Scorecard
Including the flood of earnings releases before the market's open Tuesday morning (April 25th), we now have Q1 results from 125 S&P 500 members or exactly one-quarter of the index's total membership.
Total Q1 earnings for these companies are down -2.2% from the same period last year on +6.3% higher revenues, with 80% beating EPS estimates and 69.6% beating revenue estimates.
The proportion of these 125 index members beating both EPS and revenue estimates (what we call as the 'blended' beats percentage) is 60%. The 60% 'blended' beats % in Q1 compares to 56% in 2022 Q4 for this group of 125 index members, 55.2% in Q3, 56% in Q2 and 60.8% in 2022 Q1. The average for the preceding 20 quarters (5 years) is 59.6%.
Looking at Q1 as a whole, combining the actuals that have come out with estimates for the still-to-come companies, total earnings are expected to be down -7.7% on +2.5% higher revenues. You can find more details about earnings commentary here >>>>
Today's Featured Analyst Reports
Shares of Bristol-Myers Squibb have declined -3.8% over the past year against the Zacks Medical - Biomedical and Genetics industry’s decline of -4.5%. The company’s product Revlimid, which is one of the top revenue generators, is facing generic competition and sales are being adversely impacted. Earnings estimates for Q1 are down by a cent ahead of the results.
Nevertheless, solid demand for the blood thinner drug Eliquis and the label expansion of Opdivo are maintaining momentum for Bristol-Myers. Eliquis is the leading oral anticoagulant drug and continues to experience growth in its market share. The label expansion of Opdivo into indications for lung cancer, renal cancer and gastric cancer boosted sales.
The recent approval of drugs like Opdualag, Breyanzi and Sotyktu will add a new stream of revenues. According to the Zacks analyst, estimates for BMY’s top line indicate a CAGR of around 1.2% over the next three years, driven by solid demand for legacy drugs and the approval of new drugs.
(You can read the full research report on Bristol-Myers Squibb here >>>)
Medtronic’s shares have gained +6.9% over the past six months against the Zacks Medical - Products industry’s gain of +12.2%. The company is strategically expanding its global presence to address the unmet demand for advanced medical technologies. Within Cardiovascular, Medtronic is gaining market share, banking on product launches.
Within MedSurg, Medtronic is scaling production of Hugo RAS. Innovations and market expansion efforts are helping it offset the impact of the high inflation and supply disruptions. According to the Zacks analyst projection, Medtronic’s 2023 adjusted earnings will dip 4.8% from the year-ago period on 2% revenue growth at CER.
However, in fiscal 2025, adjusted earnings are expected to grow 5% on 2.4% growth in revenues. Medtronic’s strong liquidity position should allow it to meet its near-term debt obligations. All these factors support our bullish stance on the stock.
(You can read the full research report on Medtronic here >>>)
Shares of Altria Group have underperformed the Zacks Tobacco industry over the past year (-7.5% vs. -4.7%). In the fourth quarter of 2022, higher pricing offered respite to revenues across the Smokeable Products and Oral Tobacco categories, which were otherwise hurt by lower volumes.
Incidentally, net revenues fell 2.3% year over year, mainly due to reduced net revenues in the smokeable products unit. In the Smokeable Products segment, net revenues dipped 2.4% due to the reduced shipment volume, which was a result of the industry’s decline rate, retail share losses and calendar differences.
However, the company has been benefiting from its strong pricing power. The management remains optimistic about its journey toward a smoke-free future. To this end, the company’s investment in on! is yielding well.
(You can read the full research report on Altria Group here >>>)
Other noteworthy reports we are featuring today include Target Corporation (TGT), Fiserv, Inc. (FISV) and FedEx Corporation (FDX).
Sheraz Mian
Director of Research
Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>
Today's Must Read
Eliquis, Opdivo Fuel Bristol (BMY) Amid Generic Competition
Medtronic (MDT) Gains in Market Share, MedSurg Growth Robust
Altria (MO) Gains From Solid Pricing Power Amid Cost Woes
Featured Reports
Target's (TGT) Omnichannel Efforts, Digitization to Aid Sales
Per the Zacks analyst, Target's focus on enhancing omni-channel capacities, coming up with new brands, remodeling stores and expanding same-day delivery options have been fueling sales.
Fiserv (FISV) Benefits From Finxact Acquisition, Debt High
Per the Zacks Analyst, the Finxact acquisition boosts Fiserv's digital banking strategy and enhance digital banking experiences of its clients. A debt-heavy balance sheet remains a concern.
Investments Aid American Electric (AEP), Weak Solvency Woes
Per the Zacks analyst, American Electric hefty investments offer a stable earnings base and tend to boost its long-term growth potential. However, its weak solvency position remains a concern
Cards, High Rates Aid Capital One (COF), Asset Quality Ails
Per the Zacks analyst, strength in credit card business, higher interest rates, decent loan demand and strategic buyouts will aid Capital One amid worsening asset quality and rising expenses.
Capacity Expansion, Cost Reduction to Aid Albemarle (ALB)
While Albemarle faces headwind from higher input costs, it should gain from efforts to boost its global lithium derivative capacity and cost-saving actions, per the Zacks analyst.
W.R. Berkley (WRB) is Set to Grow on Solid Insurance Business
Per the Zacks analyst, W.R. Berkley is set to grow on the strength of its Insurance business, growing international business, investment in alternative assets and solid capital position.
Digital Transformation and Acquisitions Aid Amdocs (DOX)
Per the Zacks analyst, Amdocs is benefiting from ongoing digital transformations and adoption of its cloud services. Moreover, strategic acquisitions like Sourced and Openet are a positive.
New Upgrades
FedEx (FDX) Prospects Get a Boost From Dividends & Buybacks
The Zacks analyst is impressed with FedEx's efforts to reward its shareholders through dividends and buybacks. FDX is actively cutting costs to drive bottom-line growth amid weak demand.
Fortinet (FTNT) Rides on Product Strength, Marketing Efforts
Per the Zacks analyst, Fortinet is gaining from solid contributions of its growth-oriented products Security Fabric, cloud and SD-WAN. Increasing marketing efforts are also a positive.
Buyouts & Focus on Affordable Homes to Aid D.R. Horton (DHI)
D.R. Horton is well poised for fiscal 2023 given its industry-leading market share, acquisition strategy and focus on more entry-level affordable homes, per the Zacks analyst.
New Downgrades
Significant Debt Exposure Hurts Cheniere Energy (CQP)
Compared to composite stocks belonging to the industry, Cheniere Energy has considerably more exposure to debt capital, which makes the Zacks analyst concerned.
Weakness in Residential Products' Unit Ails Generac (GNRC)
Per the Zacks analyst, Generac's performance is likely to pressured owing to installation capacity constraints. Also, stiff competition and supply chain constraints continue to be headwinds.
Inflationary Pressures Hurt Pool Corp's (POOL) Prospects
Per the Zacks analyst, Pool Corp is likely to be impacted by increased expenses concerning freight, insurance, IT, advertising and marketing. Also, fall in pool construction activity remain headwinds.
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Bristol Myers Squibb Company (BMY) : Free Stock Analysis Report
Target Corporation (TGT) : Free Stock Analysis Report
Medtronic PLC (MDT) : Free Stock Analysis Report
Altria Group, Inc. (MO) : Free Stock Analysis Report
Fiserv, Inc. (FISV) : Free Stock Analysis Report
FedEx Corporation (FDX) : Free Stock Analysis Report
