Article / 10 April 2015 at 10:52 GMT

Earnings Watch: Get ready for Q1 earnings

Head of Equity Strategy / Saxo Bank
Denmark
By Peter Garnry

Next week 45 companies in the S&P 1200 Global Index will report earnings with US company reports for Q1 set to play a dominant role. Below we highlight the most important of the upcoming releases:

  • Tuesday: Johnson & Johnson, Wells Fargo, JPMorgan Chase, Intel

  • Wednesday: Petrobras, Bank of America, Delta Air Lines, Netflix

  • Thursday: Taiwan Semiconductor, Citigroup, Philip Morris, Schlumberger, Goldman Sachs, American Express, UnitedHealth Group, BlackRock

  • Friday: General Electric, Honeywell

UnitedHealth still looks attractive

Among the most important releases, UnitedHealth Group is the only stock among our top US mega cap alpha picks. The provider of organised health systems including the administration of employee benefit programmes, has been in a strong uptrend the past year and has risen 51% Despite this impressive performance, our equity model still has it as its second most attractive mega cap stock in the US.

The company has 19.7% in ROIC on top of a decent valuation of EV/EBITDA 10.4x which together with a growing market and solid industry position makes it a very attractive cocktail for the long-term investor.

Analysts are expecting Q4 EPS $1.35 up 22% y/y and sales of $34.7 billion up 9.4% y/y; EPS estimates are up 9% over the past six months, highlighting the increasing sentiment on the stock. The company releases Q4 earnings on Thursday before the market opens.

UnitedHealth
 UnitedHealth looks to be in fine form. Photo: iStock

– Edited by Clare MacCarthy

Peter Garnry is head of equity strategy at Saxo Bank – the home of social trading
Download document

Earnings Watch - 2015-04-13

Disclaimer

The Saxo Bank Group entities each provide execution-only service and access to Tradingfloor.com permitting a person to view and/or use content available on or via the website is not intended to and does not change or expand on this. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to Tradingfloor.com and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to Tradingfloor.com is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Tradingfloor.com or as a result of the use of the Tradingfloor.com. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. When trading through Tradingfloor.com your contracting Saxo Bank Group entity will be the counterparty to any trading entered into by you. Tradingfloor.com does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of ourtrading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws. Please read our disclaimers:
- Notification on Non-Independent Invetment Research
- Full disclaimer

Check your inbox for a mail from us to fully activate your profile. No mail? Have us re-send your verification mail