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Research Daily

Sheraz Mian

Q3 Earnings Season Scorecard and Analyst Reports for Disney, Intel & Others


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Tuesday, October 26, 2021

The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features a real-time scorecard of the ongoing Q3 earnings seaosn, in addition to new research reports on 16 major stocks, including The Walt Disney Company (DIS), Intel Corporation (INTC), and Medtronic plc (MDT). 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 >>>

Q3 Earnings Season Scorecard

Including all of this morning's reports, we now have Q3 results from 144 S&P 500 members or 28.9% of the index's total membership. Total earnings for these companies are up +41.1% from the same period last year on +15.6% higher revenues, with 82.6% beating EPS estimates and 73.6% beating revenue estimates.

The EPS and revenue beats percentages are tracking below what we had seen from this same group of 144 index members in the preceding reporting cycle (2021 Q2), but it is nevertheless above historical averages for this cohort of companies.

Looking at Q3 as a whole, combining the actuals that have come out with estimates for the still-to-come companies, total earnings for the quarter are on track to increase +33.4% on +14.5% higher revenues.

Estimates for the current period (2021 Q4) have started going up, with the current +21.2% earnigs growth expected up from +20% at the start of September. This is about in-line with the revisions trend we witnessed ahead of the start of the Q3 earnings season, but below the trend we had been seeing over the preceding four to six quarters.

For more details about the Q3 earnings season, please check out our weekly Earnings Preview report >>>Previewing Big Tech Earnings: Apple, Microsoft & Other Tech Giants

Shares of Disney have outperformed the Zacks Media Conglomerates industry over the past year (+39.5% vs. +16.4%). The Zacks analyst believes that the company has been benefiting from the growing popularity of Disney+, on the back of a strong content portfolio and cheaper bundle offering.

The launch of STAR+, its stand-alone general entertainment and sports streaming service in Latin America is expected to boost subscriber growth further in the days ahead. Solid performance of Shang Chi and the Legend of the Ten Rings at the box-office and upcoming releases are likely to aid Studio Entertainment’s top line growth. Higher programming costs at ESPN, and closure of cruise business are some of the major concerns though.

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

Intel shares have lost -1.8% in the year to date period against the Zacks General Semiconductor industry’s gain of +42.2%. Delays in launching chips based on 7 nm process, stiff competition from ARM-based devices, as well as escalating costs have been stressing the company’s margins.

The Zacks analyst, however, believes that Intel’s leading position in the PC market, strength in data center business, and a headway in process technology is likely to boost the company’s revenues in the quarters ahead. Intel also announced, in third quarter of 2021, its plans to unveil Mobileye’s robotaxi equipped with the Mobileye Drive system. This, and a recovering automotive industry are other major positives for the company.

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

Shares of Medtronic have lost -3.6% over the past six months against the Zacks Medical Products industry’s loss of -1.9%. The company continues to reel under the pressure from unfavorable currency movement and global economic uncertainties. Several legal and regulatory issues are also likely to weigh on the margins in the short term.

Since the start of fiscal 2022, however, Medtronic has been reporting strong earnings growth. The Zacks analyst believes that this recovery has been made possible by the strong new product flow that the company has been bringing to the market. Increasing cadence of tuck-in M&As and implementation of new operating model is likely to add to the recovery momentum.

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

Other noteworthy reports we are featuring today include Target Corporation (TGT), Sanofi (SNY) and Deere & Company (DE).

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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