Earnings Calendar: Three S&P 500 Stocks to Watch Out for This Week
June 01 2021 - 5:39AM
Finscreener.org
As we head into the final month of the second quarter of CY
2021, a few technology companies are going to report their
quarterly earnings this week. This is because companies follow
different accounting periods and their fiscal year can very well be
different from a calendar year.
According to the earnings
calendar, tech companies such as Hewlett Packard Enterprise
(NYSE:
HPE), NetApp (NASDAQ: NTAP), and
Broadcom (NASDAQ: AVGO) are
expected to report quarterly earnings this week. All these stocks
are part of the S&P 500 (AMEX:
SPY) index and let’s see what Wall Street expects from each of
them.
Hewlett Packard Enterprise
Hewlett Packard Enterprise will be reporting its results on June
1 for the quarter ended in April. The company is involved in the
sales of HPC (high-performance computing), storage as well as edge
computing hardware and software solutions. In fiscal 2020, HPE saw
its revenue fall by 7% while its earnings decline was wider at 24%
year over year.
As the COVID-19 pandemic weighed heavily on businesses, HPE was
hurt by lower enterprise spending and related headwinds. Analysts
expect HPE to increase sales by 5.2% to $6.62 billion while
earnings per share are forecast to almost double to $0.42 in the
fiscal Q2 of 2021. During its last earnings call, HPE increased its
free-cash-flow forecast to $1.4 billion, up from $1.1 billion in
2021. In fiscal 2020, its free cash flow stood at just $560
million.
HPE stock is trading at a forward price to earnings multiple of
8.7x which is really attractive given its profit margins are
forecast to rise at an annual rate of 12.5% in the next five years.
Add in its dividend yield of 3% and HPE may end up on the buying
list of income and value investors.
NetApp
NetApp will report its fiscal Q4 of 2021 results on June 2. A
company valued at a market cap of $17.22 billion, NetApp provides
data management solutions that simplify the process of storing
enterprise data.
In Q4, analysts expect NetApp to report sales of $1.5 billion, a
year-over-year growth of 7%. Comparatively, earnings are forecast
to decline by 5% to $1.12 per share. For fiscal 2021, Wall Street
expects NetApp to increase sales by 5% to $5.7 billion while
earnings might fall by 1% to $4.01 per share.
During the last earnings call, NetApp had forecast sales between
$1.44 billion and $1.54 billion while earnings were estimated
between $1.06 and $1.14 per share. Investors should note that the
company has beaten analyst estimates in each of the last four
quarters.
Broadcom
Semiconductor giant Broadcom will report its fiscal Q2 of 2021
results on June 3. A company that is valued at a market cap of $192
billion and an enterprise value of $225 billion, Broadcom has been
one of the top performers in the S&P 500. In the last 10
years, Broadcom stock is up 1,250% and despite its market-beating
gains, it still provides a tasty dividend yield of 3.05%.
Analysts expect Broadcom sales to rise by 14% year over year in
fiscal Q2 to $6.51 billion while earnings growth is forecast at 25%
compared to the prior-year period.
Broadcom provides enterprises with solutions in the data center,
broadband, and server storage verticals. Currently, it generates
considerable cash flows from its Wi-Fi 6E solution which is a chip
that delivers
high speed with lower latency.
In fiscal 2020, the company’s free cash flow soared by 25% to
$11.6 billion. In fiscal Q1 this growth accelerated to 36% year
over year as Broadcom reported $3 billion in cash flows. Broadcom’s
interest payments stood at $570 million and its dividend payouts
were over $1.5 billion in Q1 which suggests it has enough room to
increasing dividends going forward.
Alternatively, investors might be worried about the company’s
high debt of $42 billion. But the tech giant also ended the January
quarter with close to $10 billion in cash.
SPDR S&P 500 (AMEX:SPY)
Historical Stock Chart
From Mar 2024 to Apr 2024
SPDR S&P 500 (AMEX:SPY)
Historical Stock Chart
From Apr 2023 to Apr 2024