Today's Must Read
Bristol-Myers (BMY) Beats on Q2 Earnings, Lifts Outlook
Tesla's (TSLA) Q2 Loss Wider than Expected, Revenues Beat
Friday, July 5, 2016
Today's must-read reports are for Exxon Mobile (XOM), Johnson & Johnson (JNJ) and Tesla (TSLA).
ExxonMobil shares have struggled lately, following the oil giant's weak June quarter results where it missed expectations given the impact of sharply lower commodity prices and weaker refining margins that was only partly offset by strong Chemical unit results. While the stock will continue to follow the underlying commodity, the company remains a true bellwether for the space, with a resilient and integrated business model that is the envy of its peers. The company's credit profile is no longer prestine after losing the prestigious AAA rating earlier this year, but it still has a fortress balance sheet and pays out a highly secure dividend. (You can read the full research report on XOM here>>)
Johnson & Johnson's strong Q2 results have helped sustain the stock's positive momentum lately (up more than 20% year to date). The pharma giant beat top- and bottom-line estimates and guided higher. While the company is faced with a number of headwinds like unfavorable currency movements, increased competition from generics, pricing pressures and an uncertain global macroeconomic backdrop, the analyst believes that JNJ's diversified business model, deep pipeline, lack of cyclicality and financial strength position it for continued momentum going forward. (You can read the full analyst report on JNJ here>>)
Tesla is one of those companies that generate a lot of passion among investors; it has an avid fan base, but also plenty of detractors. The detractors simply don't see any justification for the stock's lofty valuation given the niche nature of the product and the well-known operational and strategic headwinds facing the company. Tesla's Q2 results were mixed, with deliveries coming short of guidance for the second quarter in a row. In the update research report issued by our analyst today, he discusses the pros & cons of the Tesla story. The analyst likes Tesla’s new Master Plan, rapid international expansion, increasing production volume and continued investment in infrastructure development. (You can read the full research report on TSLA here>>)
Other noteworthy reports today include Travelers (TRV) and Thermo Fisher (TMO).
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Director of Research
Note: Sheraz Mian regularly provides earnings analysis on Zacks.com and appears frequently in the print and electronic media. His weekly earnings related articles include Earnings Trends and Earnings Preview. He also provides weekly commentary to Zacks Premium subscribers and manages the Zacks Focus List and Top 10 portfolios. If you want an email notification each time Sheraz publishes a new article, please click here>>>