We’re just over halfway through earnings season, but the fun isn’t over yet. About 150 companies in the S&P 500 have yet to report, including a bunch of companies that have a reputation for massive earnings surprises and earnings misses.
In fact, four of those companies are scheduled to report over the next 24 hours, and I expect each and every one of them to make headlines. In today’s blog I highlight four companies that I expect to surprise to the upside. Let’s take a look:
Cigna Corp. (CI) covers the full spectrum of health, disability, life and accident insurance. Cigna has seven business units: Cigna Group Insurance, Cigna Healthcare, Cigna Around the World, Choicelinx, Cigna Voluntary, Cigna-HealthSpring and Union & Government. With a workforce of 37,000, the company operates in 30 countries and has 86 million customer relationships worldwide. Cigna also has more than a million partnerships with health care professionals, clinics and facilities.
Cigna will post its latest quarterly results tomorrow, November 6. The firm is expected to post $2.20 EPS on $9.51 billion in sales. This works out to 12.8% annual earnings growth and 8.9% annual sales growth. Cigna has beaten analysts’ earnings estimates for the past several quarters running, and I expect a repeat performance here. CI is an A-rated Strong Buy.
Mohawk Industries Inc. (MHK) manufactures, distributes and markets flooring products for residential and commercial applications. While Mohawk Industries started as an American carpet manufacturer in 1988, it has since transformed itself into the world’s largest flooring company. Mohawk has operations on five continents and has three main divisions: Carpet, Ceramic, and Laminate and Wood. The U.S. market comprises 70% of Mohawk’s business.
Mohawk will release its third-quarter results in just a few hours—after the closing bell today. Analysts are looking for $2.99 EPS on $2.19 billion in revenue. This represents 22.5% annual earnings growth and 10.1% annual sales growth. Mohawk is also no stranger to earnings surprises, and it’s a good sign that the consensus EPS estimate has been revised higher months. MHK is an A-rated Strong Buy.
Skyworks Solutions Inc. (SKWS) makes analog semiconductors for use in radio frequency and mobile communications systems. This includes everything from amplifiers to lighting displays to mixers. Skyworks’ products are used in a wide range of industries, including automotive, wireless infrastructure, energy management and military clients. It is also a supplier to major tablet and smartphone makers—Samsung and Apple both use its chip sets to expand the wireless connection capability of their devices.
Skyworks will also report after the market closes today. The consensus estimate is $1.52 EPS on $877.7 million in sales. This represents 35.7% annual earnings growth and 22.2% annual sales growth. As with the first two, Skyworks has an excellent track record of beating analysts’ expectations. SWKS is an A-rated Strong Buy.
The Walt Disney Company (DIS) hardly needs an introduction. From theme parks to cruises to movies to televisions shows, The Walt Disney Company is a media and entertainment juggernaut unlike any other. Disney is on deck to report earnings after the closing bell today. The analyst community is calling for $1.14 earnings per share on $13.55 billion in revenue. Compared with the year ago quarter, this works out to 28.1% bottom-line growth and 9.4% top-line growth. Disney has posted earnings surprises for the past three quarters running. DIS is a B-rated Buy.