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Q4 Earnings Season Scorecard and Analyst Reports for Amazon, JPMorgan & Pfizer

Sheraz Mian
·7-min read

Friday, January 22, 2021

The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features a real-time update on the Q4 earnings season, in addition to new research reports on 16 major stocks, including (AMZN), JPMorgan Chase (JPM) and Pfizer (PFE). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.

You can see all of today’s research reports here >>>

Q4 Earnings Season Scorecard

As of Friday, January 21st, we have seen Q4 results from 66 S&P 500 members, with another 113 index members on deck to report results next week, including a host of bellwethers like Facebook (FB), Apple (AAPL), Tesla (TSLA) and others.

Total earnings for the 66 index members that have reported are up +0.3% from the same period last year on +0.6% higher revenues, with 87.9% beating EPS estimates and 78.8% beating revenue estimates.

This is better growth numbers than we saw from the same group of companies in the first three quarters of 2020, while the proportion beating EPS and revenue estimates is one of the highest in years.

Looking at Q4 as a whole, combining the actuals that have come out with estimates for the still-to-come companies, total earnings are now expected to be down -5.3% on +0.6% higher revenues.

Estimates for the current period (2021 Q1) have been steadily going up, a trend that has been in place since July 2020. Total earnings for 2021 Q1 are now expected to be up +13.8%, which is up from +11.7% on December 9th. 

Amazon shares have outperformed the S&P 500 over the past year (+74.5% vs. +17.9%) on the back of solid Prime momentum owing to ultrafast delivery services and strong content portfolio.

Further, coronavirus-led spike in online orders continues to be a major tailwind. Also, solid growth in its online stores sales remains a positive. Moreover, surge in online grocery shopping is another positive. Additionally, strong adoption rate of AWS is aiding the company’s cloud dominance.

Moreover, expanding AWS services portfolio is continuously helping Amazon in gaining further momentum among the customers. Further, improving Alexa skills and expanding smart home products portfolio are positives. However, accelerating coronavirus related expenses remain risks for the company’s margin expansion in the near term. Also, rising cloud competition poses risk.

(You can read the full research report on Amazon here >>>)

Shares of JPMorgan have gained +35.4% in the last six months against the Zacks Major Banks industry’s gain of +30.3%. The Zacks analyst believes that branch openings in new regions, inorganic expansions and strong mortgage banking business are likely to continue supporting financials.

The company's earnings have outpaced the Zacks Consensus Estimate in three of the trailing four quarters. Its fourth-quarter 2020 results reflect reserve releases, solid fee income performance, and adverse impact of low rates and weak loan demand.

While the Fed's accommodative policy and near-zero rates are expected to hurt interest income and margins, and coronavirus-induced economic downturn has hampered business activities, thereby hurting loan demand, gradual economic recovery amid vaccine breakthroughs will aid. Additionally, the company’s enhanced capital deployments reflect earnings strength and solid balance sheet.

(You can read the full research report on JPMorgan here >>>)

Pfizer shares have lost -4.5% over the past three months against the Zacks Large-Cap Pharmaceuticals industry’s rise of +10.2%. The Zacks analyst believes that currency headwinds and pricing pressure are top-line headwinds for the company.

However, Pfizer expects strong growth of key brands like Ibrance, Inlyta and Eliquis to drive sales. Its COVID-19 vaccine candidate is now approved for emergency use in several countries. However, coronavirus-related business disruption hurt sales in Q2 and Q3. The pace of recovery of COVID-19 impact is slower than expected.

Meanwhile, currency headwinds and pricing pressure are other top-line headwinds. Estimates have gone down ahead of Q4 earnings. Pfizer has a mixed record of earnings surprises in the recent quarters.

(You can read the full research report on Pfizer here >>>)

Other noteworthy reports we are featuring today include Bank of America (BAC), (CRM) and Chevron (CVX).

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Sheraz Mian

Director of Research

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

Surge in Online Orders & AWS Momentum Benefit Amazon (AMZN)

Robust Loan Balance, Branch Expansion Support JPMorgan (JPM)

Ibrance & Other Key Drugs to Drive Pfizer's (PFE) Sales

Featured Reports

New Branches, Digitization Aid BofA (BAC) amid Lower Rates

Per the Zacks analyst, efforts to improve digital offerings, opening new branches and strong balance sheet position will aid BofA.

Digital Transformation and Acquisitions Aid Salesforce (CRM)

Per the Zacks analyst, Salesforce is benefiting from ongoing digital transformations and adoption of its cloud services.

Chevron (CVX) Boosts Permian Position with Noble Buy

The Zacks analyst believes Chevron's Noble buyout will expand its position in the Permian Basin but is worried over the company's reserve replacement ratio of just 44%.

ADP Benefits From WorkMarket Buyout Amid Rising Expenses

The Zacks analyst believes that the WorkMarket acquisition is helping Automatic Data Processing to strengthen its customer base and expand internationally.

CME Group (CME) Futures Expansion Aids, Expenses Hurt

Per the Zacks analyst, the company is well poised for growth with the expansion of futures products in emerging markets and OTC offerings.

MedSurg Aids Boston Scientific (BSX) amid the Pandemic

The Zacks analyst expects the MedSurg arm, with a higher mix of non-deferrable procedures, to recover faster than the rest of its business segments.

Chipotle (CMG) Banks on Digital Initiatives, High Costs Ail

Per the Zacks analyst, Chipotle is likely to benefit from its redesigned online ordering site featuring online payment and meal customization.

New Upgrades

Seagen (SGEN) Rides High on Robust Cancer Drugs Performance

Per the Zacks analyst, Seagen's lead lymphoma drug Adcetris is performing steadily since its launch. Its other cancer drugs, Padcev and Tukysa are also generating incremental revenues which is a boon.

Viper Energy (VNOM) Banks on Oil-Rich Permian Basin Acreage

The Zacks analyst believes that Viper Energy will continue to generate strong and steady royalty income from the mineral interests in oil-rich Eagle Ford and Permian acreages.

SkyWest (SKYW) Backed By Its Healthy Liquidity Position

The Zacks analyst is optimistic about SkyWest's sound liquidity position, which is helping the company better deal with the coronavirus-led challenges.

New Downgrades

Higher Shipping Costs Weigh on Williams-Sonoma's (WSM) Margins

Per the Zacks analyst, intense competition and higher shipping costs emerging from e-commerce sales weighing on margins of Williams-Sonoma.

Soft IT Spending To Hurt SYNNEX's (SNX) Growth Prospects

Per the Zacks analyst, SYNNEX'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.

Inclement Weather Conditions Hurt Beacon Roofing (BECN)

The Zacks analyst stresses that inclement weather conditions may jeopardize Beacon Roofing's profitability as a large portion of its work is done outdoors.

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Pfizer Inc. (PFE) : Free Stock Analysis Report
JPMorgan Chase & Co. (JPM) : Free Stock Analysis Report
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Bank of America Corporation (BAC) : Free Stock Analysis Report, Inc. (AMZN) : Free Stock Analysis Report
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