Tuesday, May 10, 2022
 
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features update on the 2022 Q1 earnings season and new research reports on 16 major stocks, including AbbVie Inc. (ABBV), QUALCOMM Incorporated (QCOM), and Linde plc (LIN). 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 >>>
 
Q1 Earnings Season Scorecard

We now have Q1 results from 450 S&P 500 members or 90% of the index's total membership. Total earnings for these companies are up +9.2% on +14.5% higher revenues, with 79.1% beating EPS estimates and 75.3% beating revenue estimates.

Excluding the drag from the Finance sector, whose Q1 earnings are down -15.6% from the same peirod last year, earnings for the remainder of the index would be up +18% (vs. +9.2% with Finance).

On the other hand, the Energy sector is boosting the aggregte growth picture in a major way through the sector's +215.1% earnings growth. Excluding the Energy sector's contribution, earnings growth for the remainder of the index drops to +3.2%.

Today's Featured Reports

Shares of AbbVie have outperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+37.0% vs. +20.5%) on the back of the company's successful label expansion of its cancer drugs, Imbruvica and Venclexta. It has several new drugs in its portfolio, which have the potential to drive revenues once Humira loses U.S. exclusivity in 2023.  Skyrizi and Rinvoq are going strong, bolstered by approval in new indications. It has several early/mid-stage candidates that have blockbuster potential.
 

Allergan’s acquisition has diversified AbbVie’s revenue base into new therapeutic areas, enhancing its long-term growth potential. However, there are concerns about long-term sales growth once Humira generics enter the U.S. market. Increasing competition from newer therapies is hurting Imbruvica’s sales.
 

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

Shares of QUALCOMM have outperformed the Zacks Wireless Equipment industry over the past year (+7.0% vs. -6.1%). The Zacks analyst believes that the buyout of Arriver will bolster its ability to deliver fully integrated Advanced Driver Assistance System solutions to automakers. The company is focused on retaining its leadership in 5G and the chipset market, delivering low-power resilient multi-gigabit connectivity with best-in-class security. It is witnessing healthy traction in EDGE networking solutions across diverse sectors.
 

However, Qualcomm faces intense competition from low-cost chip manufacturers. High research and development costs are expected to dent margins, while global chip shortage due to supply-chain disruptions is a headwind. It is susceptible to risks arising from lower handset shipments, especially in China.
 

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

Linde shares have gained +2.0% over the past year against the Zacks Oil and Gas - Field Services industry’s gain of +6.4%. The Zacks analyst believes that the company is making the world more productive by the day and there is a wide range of applications for its industrial gases. Its primary products in industrial gases include oxygen, which is used as life support in hospitals. Linde’s process gas, like hydrogen, is being utilized for clean fuels, while its high-purity and specialty gases are employed to manufacture electronics.
 

Linde has long-term contracts with on-site customers backed by minimum purchase requirements, thereby securing stable cashflows. However, the cost of sales continues to increase, hurting the firm’s bottom line. Also, the company has been paying a lower dividend yield than the industry’s composite stocks over the past two years.
 

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

Other noteworthy reports we are featuring today include Abbott Laboratories (ABT), CVS Health Corporation (CVS), and Booking Holdings Inc. (BKNG).    
 

Director of Research
 
Sheraz Mian

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>>>