Coca-Cola, United Airways, NetFlix and SVB Monetary in Focus
Tuesday (April 20)
IN THE SPOTLIGHT: NETFLIX
The California-based world web leisure service firm is predicted to report its first-quarter earnings of $2.97 per share, which represents year-over-year progress of over 90% from $1.57 per share seen in the identical quarter a 12 months in the past. The streaming video pioneer would put up income progress of over 23% to round $7.15 billion.
“We anticipate paid internet provides to be consistent with information, helped partly by ongoing COVID shutdowns in some markets. Our view is supported by our constructive 1Q survey knowledge, which suggests 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 Worth 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 predicted to report its first-quarter earnings of $2.85 per share, which represents year-over-year progress of over 50% from $1.88 per share seen in the identical quarter a 12 months in the past. The financial institution would put up income progress of about 18% to round $428 million.
“SBNY has a singular enterprise mannequin, with its single-point-of-contact bankers, wonderful credit score tradition, and a extremely environment friendly working construction. Its mortgage progress continues to outpace friends, given its comparatively new deal with 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 robust underwriting historical past and conservative lending.”
Thursday (April 22)
IN THE SPOTLIGHT: SVB FINANCIAL
The dad or mum of Silicon Valley Financial institution is predicted to report its first-quarter earnings of $6.47 per share, which represents year-over-year progress of about 153% from $2.55 per share seen in the identical quarter a 12 months 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 put up income progress of over 50% to about $1.24 billion.
“SIVB is without doubt one of the fastest-growing banks in our protection universe, with a median of 20%+ mortgage and deposit progress 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 progress to sluggish, we nonetheless see low-teens mortgage progress (properly above friends) for the subsequent a number of years,” famous Ken Zerbe, fairness analyst at Morgan Stanley.
“We’re Equal-weight the shares as a consequence 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 adjustments in Fed funds. Fee will increase would drive increased EPS.”
Friday (April 23)