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Research Daily

Sheraz Mian

Q2 Earnings Scorecard & Analyst Reports for Microsoft, AbbVie & Enbridge


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Tuesday, July 13, 2021

The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features features a real-time scorecard of the Q2 earnings season that saw JPMorgan (JPM), Goldman Sachs (GS) and others report June-quarter results this morning. In addition to the earnings season update, today's edition features new research reports on 16 major stocks, including Microsoft (MSFT), AbbVie (ABBV), and Enbridge (ENB). 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 >>>

Q2 Earnings Season Scorecard

Including this morning's results, we now have Q2 results from 18 S&P 500 members. Total Q2 earnings for these 18 index members are up +109.3% from the same period last year on +15.6% higher revenues, with 87.5% beating EPS estimates and 91.7% beating revenue estimates.

This is better performance than we have seen from this same group of 18 index members in other recent periods, though this admittedly early going and skew more towards the Finance sector. 

Looking at Q2 as a whole, combining the results that have come out with estimates for the still-to-come companies, total earnings for the period are now expected to be up +64.7% on +18.9% higher revenues. 

Today's Featured Research Reports 

Shares of Microsoft have outperformed the S&P 500 in the year-to-date period (+27.3% vs. +18.4%) on the back of accelerated adoption of Azure services amid accelerated global digital transformation.

Teams’ user growth is gaining from continuation of work from home, online education and telehealth trends. The company is also witnessing growth in user base of its different applications including Microsoft 365 suite and Dynamics. Microsoft expects Surface as well as Xbox Content and services revenues to dip in the fiscal fourth quarter due to tough year over year comparison.

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

AbbVie shares have gained +5.9% over the last six months against the Zacks Large-Cap Pharmaceuticals industry’s gain of +10.2%. The Zacks analyst believes that AbbVie has an impressive late-stage pipeline with several early/mid-stage candidates that have potential. Its two new immunology drugs, Skyrizi and Rinvoq, have been performing beyond expectations.

Allergan’s acquisition has diversified AbbVie’s revenue base into new therapeutic areas, enhancing its long-term growth potential. Sales erosion due to direct biosimilar competition to Humira in international markets remains a major headwind. The decline in AbbVie’s HCV drug, Mavyret’s sales remains another major concern.

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

Shares of Enbridge have gained +7.8% in the past three months against the Zacks Oil Production and Pipeline industry’s gain of +11.5%. The Zacks analyst believes that the company has low exposure to risk as well as fluctuations in oil and gas prices due to shippers contracting its assets for the long term.

From 2021 to 2023, the firm expects C$17 billion in midstream growth capital projects to be executed. Over the past year, however, the firm has mostly been yielding lower dividend than the industry. Enbridge's Line 5 is facing severe backlash from environmental groups and Michigan’s governor wants the pipeline to be shut down over spill concerns.

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

Other noteworthy reports we are featuring today include Becton, Dickinson and Company (BDX), Eaton (ETN) and Emerson Electric (EMR).

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>>>

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