Coca-Cola, United Airways, NetFlix and SVB Monetary in Focus
Tuesday (April 20)
IN THE SPOTLIGHT: NETFLIX
The California-based international web leisure service firm is anticipated to report its first-quarter earnings of $2.97 per share, which represents year-over-year development of over 90% from $1.57 per share seen in the identical quarter a yr in the past. The streaming video pioneer would publish income development of over 23% to round $7.15 billion.
“We anticipate paid internet provides to be according to information, helped partly by ongoing COVID shutdowns in some markets. Our view is supported by our constructive 1Q survey information, which means NFLX continues to steer front room TV apps. We additionally view the 45% of survey respondents who share passwords as a LT opp’ty for incremental subs. Reiterate Outperform & $675 Value Goal,” famous John Blackledge, fairness analyst at Cowen and Firm.
Wednesday (April 21)
IN THE SPOTLIGHT: SIGNATURE BANK
The New York-based full-service business financial institution is anticipated to report its first-quarter earnings of $2.85 per share, which represents year-over-year development of over 50% from $1.88 per share seen in the identical quarter a yr in the past. The financial institution would publish income development of about 18% to round $428 million.
“SBNY has a novel enterprise mannequin, with its single-point-of-contact bankers, glorious credit score tradition, and a extremely environment friendly working construction. Its mortgage development continues to outpace friends, given its comparatively new give attention to rising its PE/VC capital name lending enterprise, whereas strategically de-emphasizing its NYC MF portfolio,” Ken Zerbe, fairness analyst at Morgan Stanley.
“Whereas we do anticipate losses in SBNY’s CRE portfolio, we imagine the market is overly discounting this within the inventory value, significantly given its sturdy underwriting historical past and conservative lending.”
Thursday (April 22)
IN THE SPOTLIGHT: SVB FINANCIAL
The dad or mum of Silicon Valley Financial institution is anticipated to report its first-quarter earnings of $6.47 per share, which represents year-over-year development of about 153% from $2.55 per share seen in the identical quarter a yr in the past.
Within the final 4 consecutive quarters, on common, the corporate has delivered an earnings shock of over 45%. The Santa Clara, California-based firm would publish income development of over 50% to about $1.24 billion.
“SIVB is among the fastest-growing banks in our protection universe, with a median of 20%+ mortgage and deposit development yearly since 2010, with the expansion pushed by its distinctive area of interest of lending to the expertise and life sciences industries, together with PE and VC capital name strains. Whereas we anticipate development to sluggish, we nonetheless see low-teens mortgage development (properly above friends) for the subsequent a number of years,” famous Ken Zerbe, fairness analyst at Morgan Stanley.
“We’re Equal-weight the shares because of valuation. SIVB is buying and selling at simply over 20x ahead earnings and greater than 10 P/E factors above its friends (versus a 4-6x a number of premium that we imagine it deserves). SIVB‘s earnings are extremely delicate to modifications in Fed funds. Price will increase would drive increased EPS.”
Friday (April 23)