Earnings season always offers a glimpse into the inner workings of companies, revealing what’s been brewing behind the scenes. The big banks have already set the stage, revving their engines for an impressive run, with other corporations poised to join the fray.
UnitedHealth: Above Expectations as Usual
UnitedHealth Group, a healthcare behemoth, has been consistently outperforming expectations, surpassing the Zacks Consensus EPS estimate by an average of 2.7% over the past four quarters. Analysts are optimistic, with a 1.7% increase in the $6.66 Zacks Consensus EPS estimate since mid-January, hinting at a solid 6% year-over-year growth trajectory.
While revenue projections have remained steady, a sales figure of $99.3 billion anticipates an 8% uptick from the previous year. UnitedHealth’s top-line growth trend is clearly visible in the accompanying chart.
Johnson & Johnson: A Steady Performer
Johnson & Johnson, operating across pharmaceuticals, medical devices, and consumer products, has been consistently exceeding EPS estimates, boasting an average surprise of 5% over the previous four quarters. With the $2.65 Zacks Consensus EPS estimate holding firm, a slight dip of 1.5% from last year is expected.
Revenue projections have seen a marginal increase, reaching $21.4 billion, indicating a 13.5% decline year-over-year. Notably, JNJ shares have remained flat over the last three years, diverging from the S&P 500’s exceptional growth.
Discover Financial Services: A Quest for Redemption
Discover Financial Services, a player in the digital banking and payment services realm, is striving to reverse a trend of missing EPS estimates over the past four quarters. Analyst sentiment is bearish, with a significant 14% downward revision in the $2.96 Zacks Consensus EPS estimate since mid-January, reflecting a 17% decrease compared to the previous year.
While revenue expectations remain static, a projected $4.1 billion indicates an 8% rise from the corresponding period last year. The company’s sales have showcased substantial growth over recent years, as depicted in the provided chart.
Insights for Investors
Earnings season provides an exciting peek behind the corporate curtain for investors. The upcoming releases from UnitedHealth, Johnson & Johnson, and Discover Financial Services promise to be pivotal moments for these firms.
Investing is a bit like a rollercoaster ride, with its highs and lows. Comparatively, Bitcoin has shown remarkable profitability, outshining other forms of decentralized currency. In the past three presidential election years, Bitcoin yielded impressive returns: +272.4% in 2012, +161.1% in 2016, and +302.8% in 2020. Zacks suggests another substantial surge may be on the horizon.
