The earnings season for the second quarter is in full swing, and investors have varying expectations due to rising fuel costs, inflation, and geopolitical crises affecting global economies and companies. Earnings releases can be significant market movers.
A positive or negative quarterly report frequently sets the tone for a stock for the subsequent months, especially if the company provides forward guidance.
This week, the following stocks are expected, if not already have, to release their quarter two results.
Pfizer, Inc.
Profits and sales for Pfizer Inc. (PFE) have increased dramatically in recent quarters as demand for its COVID-19 vaccine has increased.
This rise has been decelerating, but it is expected to remain robust due to the continued use of Pfizer’s vaccine for boosters and other therapies.
In an agreement worth $3.2 billion to Pfizer, the U.S. government agreed to acquire up to 105 million doses for the autumn booster season.
In recent quarters, rising COVID-19 cases have boosted sales of Paxlovid, an oral antiviral therapy for COVID-19 manufactured by Pfizer.
Pfizer PFE will release results for the second quarter of 2022 before the market opens on July 28, 2022.
In the most recent reported quarter, the company’s earnings fell short of projections by 2.41 per cent.
Analysts estimate that Pfizer’s Q2 2022 adjusted earnings per share (EPS) will be $1.92, considerably above the consensus expectation of $1.80.
The huge 74 per cent increase in Pfizer’s adjusted net income from $5.4 billion in the first quarter of 2021 to $9.3 billion in the first quarter of 2022 was driven by the company’s increased revenue.
However, inflationary pressures and supply chain restrictions may pose a threat to near-term margin expansion. For the full year of 2022, we anticipate the adjusted EPS to be $7.05, up from $4.42 in 2021.
Intel Corporation
Intel Corporation INTC is expected to release second-quarter financial data on July 28, 2022, after the market closes.
In its most recently reported quarter, the company posted an 8.8 per cent earnings surprise. It accomplished an average trailing-four-quarter profit surprise of 26,2%.
The Santa Clara, California-based semiconductor business is anticipated to have generated reduced revenues year-over-year due to a decline in Client Computing Group and Data Center Group sales.
Blackstone Inc.
BX’s second-quarter 2022 distributable earnings of $1.49 per share exceeded the consensus estimate of $1.47 per share. The figure represents an increase of 81.7% from the previous quarter.
The results were principally driven by an increase in segment revenues and a decrease in expenses. The company’s assets under management (AUM) balance increased, primarily due to inflows, which was another positive development.
However, revenue decreased (based on GAAP) negatively impacted the results. Following the release, shares of the company fell 4.6%, most likely as a result of this.
Blackstone incurred a net loss of $29.4 million compared to a net income of $1.31 billion in the same quarter of the prior year.
Biogen Inc.
Biogen Inc. (BIIB) reported quarterly earnings per share of $5.25, above the Consensus Estimate of $4.09 per share. This compares to last year’s earnings per share of $5.68. These data have been modified for one-time events.
This quarterly report represents a 28.36 per cent earnings surprise.
Prior to the current quarter, it was anticipated that this firm would report earnings of $4.41 per share, but it actually earned $3.62 per share, providing a -17.91 per cent earnings surprise.
The company has exceeded consensus EPS projections three times in the past four quarters.
Biogen Inc., which belongs to the Biomedical and Genetics industry, exceeded the Consensus Estimate by 4.69 per cent in the quarter ending June 2022 with revenues of $2.59 billion.
This compared to revenues of $2.78 billion in the prior year. Four times in the past four quarters, the company’s revenue has exceeded consensus projections.
The viability of the stock’s immediate price movement based on the recently-revealed figures and future earnings projections will largely depend on management’s remarks during the earnings call.
Biogen Inc. shares have declined 8.2% since the beginning of the year, compared to the S&P 500’s -17.4% fall.
VeriSign, Inc.
VeriSign, Inc. VRSN is scheduled to release second-quarter earnings on July 28, 2022, following the market close.
The Consensus Estimate for second-quarter earnings is $1.52 per share, indicating a 16 per cent rise from the same period last year. The consensus estimate for revenue is $348.8 million, representing a 5.9% increase compared to the same quarter last year.
In three of the last four quarters, the company’s earnings were above the Consensus Estimate while missing the mark once.
It has an average trailing four-quarter earnings surprise of 3.3%.
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