Four key earnings to watch this week: Pfizer (NYSE:PFE); Gilead Sciences (NASDAQ:GILD); Facebook (NASDAQ:FB); QUALCOMM (NASDAQ:QCOM)

Pfizer, Inc.

Pfizer Inc.(NYSE:PFE) is going to announce its third quarter 2016 results on November 1st, 2016 while the analysts are expecting the earnings per share (EPS) of $0.62 as compared to the reported EPS of $0.6 for the same quarter of last year. Pfizer has been delivering better than estimates results since the last five quarters. Tomorrow’s third quarter results will be crucial for the group as the stock fell over 13.5% (Source: Google finance) in the last three months.

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However Pfizer remains a favorite stock to investors wherein the BlackRock Fund Advisors has raised its position in PFE by 3.2%. Massachusetts Financial Services Co. MA has raised 1.9%, while Capital International Investors has raised 7.8% in the company and TIAA CREF Investment Management LLC has raised 9.5% in the second quarter. According to tipranks.com, 11 analysts cover the stock while recommend a “Moderate Buy”. Pfizer stock has an average price target of $40.78, which is a further upside of 27.72%.

Investors will track Ibrance, Lyrica & Viagra performance tomorrow. Gross margins would also be in spotlight as the group continues to grow its top line via acquisitions. Pfizer has in pipeline 92 clinical studies. Nine drugs of Pfizer are awaiting regulatory approval. Some of those are existing drugs on the market for which Pfizer needs approval for a new indication, such as seeking to win a thumbs-up for Xeljanz in Europe for treating rheumatoid arthritis. Others are new drugs, which includes the atopic dermatitis treatment crisaborole. Twenty-nine of the 92 studies are in phase 3 indicating a good chance of becoming blockbusters if approved.

Gilead Sciences, Inc.

Gilead Sciences, Inc.(NASDAQ:GILD) is coming out with the third quarter ending September 2016 which would be released on November 1st, 2016. The group is expected to report a consensus EPS of $2.74 as compared to the corresponding quarter of last year of $3.19 as per the Zacks Investment Research. Even GILD stock has been on a negative trend which fell over 6.6% in the last four weeks due to news of black box label for the group’s HCV drugs.

GILD has transformed itself after the acquisition of Pharmasset for $11 billion in 2011. GILD’s hepatitis C franchise, which is built upon the drugs picked up in the Pharmasset acquisition, has generated a combined revenue of over $19 billion in 2015 and $12.4 billion in 2016.

On the other hand, investor’s need to see the huge potential market for the group’s pipeline which includes HIV, hep C candidates and is focusing on nonalcoholic steatohepatitis (NASH). The group’s pipeline also includes several other promising products like Eleclazine which is in a phase 3 study targeting treatment of rare heart disease long QT-3 syndrome while JAK1 inhibitor filgotinib is in phase 2 studies treating for Crohn’s disease and rheumatoid arthritis. Three late-stage studies are in progress for cancer candidates, including potential myelofibrosis drug momelotinib.

According to tipranks.com, 12 analysts cover the stock which recommend a “Moderate Buy”. GILD has an average price target of $101.22, which is a further upside of 37.01%.

Facebook, Inc.  

Facebook Inc(NASDAQ:FB) is coming out with the third quarter of 2016 results on November 2nd, 2016. The group is expected to report 54% growth in the revenue, compared to the 59% growth in the second quarter 2016 and 52% growth in the first quarter 2016 as per the Thomson Reuters. Facebook  expects to post the third-quarter revenues rise of 53.7% to $6.92 billion. Earnings per share on an average is expected to be $0.97 per diluted share, well above the $0.57 per diluted share a year earlier.

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Revenue Trend (source: Company Reports)

However, investors are anxious over the upcoming earnings as the group’s CFO, David Wehner indicated a possible deceleration in revenue growth in the second half of the year. But, Facebook  has beaten the consensus earnings per share (EPS) estimates in the last three quarters by an average of 20%.

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FB stock rose over 11.7% since the last six months (Source: Google finance) and remains a favorite to analysts, who recommend a “Strong Buy based on 27 analysts with a further upside of 23.6%.

Qualcomm

QUALCOMM, Inc. (NASDAQ:QCOM) is coming out with their results on fourth quarter on November 2nd, 2016.  However, the guidance from the group was not great for the quarter. The market appears concerned about the sustainability of their business due to maturing mobile market. But, QCOM is buying NXPI for $38.1 billion to expand from their maturing core wireless business to the growth opportunities of the Internet-of-Things. The stock recovered over 9.3% in the last three months.

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Fourth Quarter of 2016 Guidance (source: Company Reports)

QCOM in the third quarter had reported Earnings per share of $1.16, which had exceeded the $0.97 consensus of the 23 analysts covering the company and exceeded last year’s 3rd quarter results by 17.17%.

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If the group beats their guidance, then a further rally in the stock could be spurred but the overall sentiment on the stock remains weak. According to tipranks.com, QCOM has an average price target of $68.08, which is a further downside of 0.47%.

 

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