The Earnings Big Picture & Analyst Reports for Tesla, Mastercard & Others

The Earnings Big Picture & Analyst Reports for Tesla, Mastercard & OthersThe Earnings Big Picture & Analyst Reports for Tesla, Mastercard & Others

<h3 class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Friday, September 4, 2020” data-reactid=”19″>Friday, September 4, 2020

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="We have provided a big-picture update on the evolving earnings backdrop in today’s Zacks Research Daily. And as we always do, we have featured fresh research reports on 16 major stocks, including Tesla (TSLA), Mastercard (MA) and United Parcel Service (UPS). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.” data-reactid=”20″>We have provided a big-picture update on the evolving earnings backdrop in today’s Zacks Research Daily. And as we always do, we have featured fresh research reports on 16 major stocks, including Tesla (TSLA), Mastercard (MA) and United Parcel Service (UPS). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="You can see&nbsp;all of&nbsp;today’s&nbsp;research reports here &gt;&gt;&gt;” data-reactid=”21″>You can see all of today’s research reports here >>>

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="The Earnings Discussion&nbsp;” data-reactid=”22″>The Earnings Discussion 

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="This is a good time to take a look at consensus expectations for the September quarter, with results for the June quarter essentially over now. As of today, we have only S&amp;P 500 company still to report Q2 result. This company is Kroger (KR), which reports next week on Sept. 11th. ” data-reactid=”23″>This is a good time to take a look at consensus expectations for the September quarter, with results for the June quarter essentially over now. As of today, we have only S&P 500 company still to report Q2 result. This company is Kroger (KR), which reports next week on Sept. 11th.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Regular readers of our earnings commentary know that we were encouraged the tone and substance of Q2 results, even though the overall growth picture remained anemic as a result of the ongoing Covid-19 pandemic. ” data-reactid=”24″>Regular readers of our earnings commentary know that we were encouraged the tone and substance of Q2 results, even though the overall growth picture remained anemic as a result of the ongoing Covid-19 pandemic.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="A big reason for our favorable earnings commentary has been the revisions trend, which notably turned positive in early July and has remained so ever since. As a result, while earnings growth is still expected to remain under pressure in the September quarter, it has nevertheless been steadily improving. ” data-reactid=”25″>A big reason for our favorable earnings commentary has been the revisions trend, which notably turned positive in early July and has remained so ever since. As a result, while earnings growth is still expected to remain under pressure in the September quarter, it has nevertheless been steadily improving.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Total Q3 earnings for the S&amp;P 500 index are currently expected to be down -23.9% from the same period last year on -3.2% lower revenues, which would follow the -32.6% earnings decline -9.2% lower revenues in Q2. ” data-reactid=”26″>Total Q3 earnings for the S&P 500 index are currently expected to be down -23.9% from the same period last year on -3.2% lower revenues, which would follow the -32.6% earnings decline -9.2% lower revenues in Q2.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Please note that Q3 earnings were expected to be down -26.5% at the start of July, so the decline rate has notably improved since the start of the quarter. We see similar improving trend with estimates for full-year 2020 and 2021.&nbsp;” data-reactid=”27″>Please note that Q3 earnings were expected to be down -26.5% at the start of July, so the decline rate has notably improved since the start of the quarter. We see similar improving trend with estimates for full-year 2020 and 2021. 

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Tesla&nbsp;shares have lost groun over the last few trading sessions, but the stock has literally been on fire this year, up +353.6%. Some pullback after such rapid fire gains are to be expected,&nbsp; but the Zacks analyst believes that Tesla has a first-mover advantage in the EV space with high range vehicles, superior technology, and software edge.” data-reactid=”28″>Tesla shares have lost groun over the last few trading sessions, but the stock has literally been on fire this year, up +353.6%. Some pullback after such rapid fire gains are to be expected,  but the Zacks analyst believes that Tesla has a first-mover advantage in the EV space with high range vehicles, superior technology, and software edge.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Robust Model 3 demand, ramp up of Model Y production, significant Shanghai Gigafactory progress, amazing line-up of upcoming products and aggressive expansion efforts bode well for the firm. However, high R&amp;D, SG&amp;A costs and massive capex may clip the margins.” data-reactid=”29″>Robust Model 3 demand, ramp up of Model Y production, significant Shanghai Gigafactory progress, amazing line-up of upcoming products and aggressive expansion efforts bode well for the firm. However, high R&D, SG&A costs and massive capex may clip the margins.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Tesla is investing heavily to increase production capacity, boost sales and construct Gigafactories, which are likely to strain its near-term prospects. Waning margins for Model S/X is another concern. Thus, investors are recommended to wait for a better entry point.” data-reactid=”30″>Tesla is investing heavily to increase production capacity, boost sales and construct Gigafactories, which are likely to strain its near-term prospects. Waning margins for Model S/X is another concern. Thus, investors are recommended to wait for a better entry point.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="(You can&nbsp;read the full research report on Tesla here &gt;&gt;&gt;)” data-reactid=”31″>(You can read the full research report on Tesla here >>>)

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Shares of Mastercard have gained +13.7% over the past six months against the Zacks Financial Transaction Services industry’s rise of +8.8%. The Zacks analyst believes that the company is gaining from an increased demand for digital and contactless solutions owing to the COVID crisis.” data-reactid=”32″>Shares of Mastercard have gained +13.7% over the past six months against the Zacks Financial Transaction Services industry’s rise of +8.8%. The Zacks analyst believes that the company is gaining from an increased demand for digital and contactless solutions owing to the COVID crisis.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="The company has undertaken several acquisitions to supplement organic efforts and diversify revenues over the years, which has helped expand its addressable markets and strengthen core product solutions. Investment in technology keeps it at the forefront of the rapidly-evolving payments industry.” data-reactid=”33″>The company has undertaken several acquisitions to supplement organic efforts and diversify revenues over the years, which has helped expand its addressable markets and strengthen core product solutions. Investment in technology keeps it at the forefront of the rapidly-evolving payments industry.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="It is also witnessing buoyant demand for its Data &amp; Analytics and Cyber solutions. Mastercard’s solid capital position enables investment in business and returning value to shareholders. However, escalating costs might put pressure on the company’s margins. It also cancelled its annual 2020 outlook for net revenues and operating expense due to coronavirus-induced business loss.” data-reactid=”34″>It is also witnessing buoyant demand for its Data & Analytics and Cyber solutions. Mastercard’s solid capital position enables investment in business and returning value to shareholders. However, escalating costs might put pressure on the company’s margins. It also cancelled its annual 2020 outlook for net revenues and operating expense due to coronavirus-induced business loss.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="(You can&nbsp;read the full research report on Mastercard here &gt;&gt;&gt;)” data-reactid=”35″>(You can read the full research report on Mastercard here >>>)

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="UPS&nbsp;shares have gained +29.8% over the past year against the Zacks Transportation – Air Freight and Cargo industry’s fall of +40.5%. The Zacks analyst believes that UPS is being aided by a significant increase in home deliveries amid the prevalent coronavirus pandemic.” data-reactid=”36″>UPS shares have gained +29.8% over the past year against the Zacks Transportation – Air Freight and Cargo industry’s fall of +40.5%. The Zacks analyst believes that UPS is being aided by a significant increase in home deliveries amid the prevalent coronavirus pandemic.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Notably, the need for door-to-door delivery of essentials during this crisis is rising. Owing to the surge in residential and healthcare shipments, UPS performed impressively in second-quarter 2020. The substantial boom in e-commerce business is a huge positive and is likely to boost UPS’ September-quarter results too.” data-reactid=”37″>Notably, the need for door-to-door delivery of essentials during this crisis is rising. Owing to the surge in residential and healthcare shipments, UPS performed impressively in second-quarter 2020. The substantial boom in e-commerce business is a huge positive and is likely to boost UPS’ September-quarter results too.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Notably, adjusted free cash flow surged 77.2% year over year in first-half 2020. The fact that the Zacks Consensus Estimate for current-year earnings has been revised 24% upward over the past 60 days reflects the optimism surrounding the stock.” data-reactid=”42″>Notably, adjusted free cash flow surged 77.2% year over year in first-half 2020. The fact that the Zacks Consensus Estimate for current-year earnings has been revised 24% upward over the past 60 days reflects the optimism surrounding the stock.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="(You can&nbsp;read the full research report on UPS here &gt;&gt;&gt;)” data-reactid=”43″>(You can read the full research report on UPS here >>>)

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Other noteworthy reports we are featuring today include Lockheed Martin (LMT), Square (SQ) and Colgate-Palmolive (CL).” data-reactid=”44″>Other noteworthy reports we are featuring today include Lockheed Martin (LMT), Square (SQ) and Colgate-Palmolive (CL).

<h3 class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="More Stock News: This Is Bigger than the iPhone!” data-reactid=”45″>More Stock News: This Is Bigger than the iPhone!

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.” data-reactid=”46″>It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don’t buy now, you may kick yourself in 2021.” data-reactid=”47″>Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don’t buy now, you may kick yourself in 2021.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Click here for the 6 trades &gt;&gt;” data-reactid=”48″>Click here for the 6 trades >>

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Sheraz Mian” data-reactid=”49″>Sheraz Mian

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Director of Research” data-reactid=”50″>Director of Research

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="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&nbsp;Earnings Trends&nbsp;and&nbsp;Earnings Preview&nbsp;reports. If you want an email notification each time Sheraz publishes a new article, please&nbsp;click here&gt;&gt;&gt;” data-reactid=”51″>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

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<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Accretive Buyouts, Strong Balance Sheet Aid Mastercard (MA)” data-reactid=”55″>Accretive Buyouts, Strong Balance Sheet Aid Mastercard (MA)

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="E-commerce Boom and Strong Free Cash Flow Boost UPS” data-reactid=”57″>E-commerce Boom and Strong Free Cash Flow Boost UPS

Featured Reports

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Per the Zacks Analyst, Lockheed Martin witnesses strong demand for its aircraft programs and missile defense systems.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Square (SQ) Banks on Solid Cash App Adoption, Bitcoin Growth” data-reactid=”62″>Square (SQ) Banks on Solid Cash App Adoption, Bitcoin Growth

Per the Zacks analyst, Square is benefiting from strong Cash App engagement and its growing active customer base. Further, growing bitcoin revenues owing to robust Cash App are contributing well.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Colgate’s (CL) Innovative Product-Lines to Boost Top Line” data-reactid=”64″>Colgate’s (CL) Innovative Product-Lines to Boost Top Line

Per the Zacks analyst, the re-launch of Colgate Total and Hill’s Science Diet, and expansion of Naturals and Therapeutics divisions highlight Colgate’s innovation efforts.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Bayer (BAYER) Focuses on Deals &amp; Acquisitions Amid Competition” data-reactid=”66″>Bayer (BAYER) Focuses on Deals & Acquisitions Amid Competition

Per the Zacks analyst, Bayer has made several acquisitions and entered into a number of deals to boost its portfolio in the past few quarters.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Growth Investments Supports ABB Despite Weak Market Demand” data-reactid=”68″>Growth Investments Supports ABB Despite Weak Market Demand

Per the Zacks analyst, ABB’s organic growth investments along with diligent cost-cutting actions will boost its competency.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Biogen (BIIB) Focus on Aducanumab Amid Rising Competition” data-reactid=”70″>Biogen (BIIB) Focus on Aducanumab Amid Rising Competition

The Zacks analyst notes that approvability of Alzheimer’s drug, aducanumab, has improved after FDA granted priority tag to its BLA.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Chipotle (CMG) Banks on Sales-Building Efforts, High Costs Ail” data-reactid=”72″>Chipotle (CMG) Banks on Sales-Building Efforts, High Costs Ail

Per the Zacks analyst, Chipotle’s increased focus on food safety and enhancing customer experience, along with various sales-building bode well. However, rise in food and labor costs woes linger.

New Upgrades

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Per the Zacks analyst, Zoom Video is benefiting from the coronavirus-induced remote working and Internet-based education wave.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="America Movil (AMX) Rides on Acquisitions, Spectrum Strength” data-reactid=”77″>America Movil (AMX) Rides on Acquisitions, Spectrum Strength

Per the Zacks analyst, strategic acquisitions and robust spectrum portfolio backed by cost-reduction initiatives are likely to elevate America Movil’s market position in the Latin American markets.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="CDW Rides on Digital Shift, Remote Working Tools Demand” data-reactid=”79″>CDW Rides on Digital Shift, Remote Working Tools Demand

Per the Zacks analyst, CDW is benefiting from the ongoing digital transformation and increased demand for products that aid remote working and operation continuity plans amid the coronavirus crisis.

New Downgrades

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Per the Zacks analyst, reduced orders from customers providing prestige beauty products due to store closures and travel restrictions amid the coronavirus pandemic will weigh on AptarGroup’s results.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="DXC’s Growth Prospects to be Hurt by Lower IT Spending” data-reactid=”84″>DXC’s Growth Prospects to be Hurt by Lower IT Spending

Per the Zacks Analyst, DXC’s growth prospects might be hurt by soft IT spending as organizations are pushing back their investments in big and expensive tech products amid the coronavirus crisis.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Timberland Diversity Aids Rayonier (RYN) Amid Choppy Market” data-reactid=”86″>Timberland Diversity Aids Rayonier (RYN) Amid Choppy Market

Per the Zacks Analyst, Rayonier will benefit from its timberlands’ geographical diversity and better pricing power, though stiff competition and pandemic-led choppy market conditions remain concerns.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
&nbsp;
United Parcel Service, Inc. (UPS) : Free Stock Analysis Report
&nbsp;
Tesla, Inc. (TSLA) : Free Stock Analysis Report
&nbsp;
Square, Inc. (SQ) : Free Stock Analysis Report
&nbsp;
Mastercard Incorporated (MA) : Free Stock Analysis Report
&nbsp;
Lockheed Martin Corporation (LMT) : Free Stock Analysis Report
&nbsp;
ColgatePalmolive Company (CL) : Free Stock Analysis Report
&nbsp;
To read this article on Zacks.com click here.
&nbsp;
Zacks Investment Research” data-reactid=”88″>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
United Parcel Service, Inc. (UPS) : Free Stock Analysis Report
 
Tesla, Inc. (TSLA) : Free Stock Analysis Report
 
Square, Inc. (SQ) : Free Stock Analysis Report
 
Mastercard Incorporated (MA) : Free Stock Analysis Report
 
Lockheed Martin Corporation (LMT) : Free Stock Analysis Report
 
ColgatePalmolive Company (CL) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research

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