Top US stocks to watch before the bell: Pfizer, DuPont and CVS Health
Joshua Warner May 4, 2021 1:16 PM
Pfizer expects to sell more coronavirus jabs than previously thought, DuPont, CVS Health and Bunge raise their full-year expectations, Under Armour sees a strong recovery as stores reopen, Verizon agrees to sell its media business, and Nutrien swings to a profit.
Pfizer has revealed it now expects to generate a staggering $26 billion in sales of its coronavirus vaccine in 2021, up from its previous estimate of around $15 billion, as it raised its guidance after a strong start to the year.
The guidance assumes it can produce around 1.6 billion doses of the vaccine, which is owned 50:50 with German partner BioNTech, this year. Notably, Pfizer expects to book a profit from selling its jab, unlike some of its peers like Johnson & Johnson that have pledged to sell them for non-profit until the end of the pandemic.
It came as Pfizer reported a 45% jump in overall revenue in the first quarter to $14.58 billion with adjusted income up 48% to $5.26 billion. Pfizer also upped its guidance for the full year and expects revenue of $70.5 billion to $72.5 billion compared to a previous target of $59.4 billion to $61.4 billion. Adjusted diluted EPS should be between $3.55 to $3.65 compared to a previous target of $3.10 to $3.20.
Industrial materials maker DuPont has increased its guidance for the full year after comfortably beating expectations in the first quarter as demand from chipmakers and automakers improved.
The company said revenue rose 8% to $4 billion in the period while adjusted EPS jumped 90% to $0.91. That was much better than the $3.85 billion in revenue and $0.76 in EPS expected by analysts.
DuPont said it now expects annual sales to be between $15.70 billion and $15.90 billion this year with EPS of $3.60 to $3.75. That compares to its previous target to deliver revenue $15.40 billion to $15.60 billion and EPS of $3.30 to $3.45.
CVS Health beat expectations in the first quarter and raised its outlook for the full year as it benefits from higher footfall thanks to its part in giving people coronavirus jabs and tests in its stores.
The company said sales were up 3.5% in the quarter to $69.1 billion and adjusted EPS grew 6.8% to $2.04. Earnings were ahead of the $1.72 expected by analysts. CVS Health said annual adjusted earnings will be between $7.56 and $7.68 this year, up from its previous range of $7.39 to $7.55.
Bunge revealed that profits more than trebled during the first quarter of 2021 thanks to a recovery in demand which it expects to continue throughout the rest of the year, prompting it to raise its guidance.
The agricultural commodities trader said it made adjusted net income of $3.13 per share compared to just $0.91 the year before. It said it now expects annual earnings to be around $7.50 per share rather than its previous target of $6.00.
The results were thanks to strong demand for crop exports out of North America and better margins from its oilseed crushing business, which helped offset slower sales and weather issues in Brazil.
Verizon is selling its media business that homes brands such as Yahoo and AOL for just under $5 billion to private equity firm Apollo Global.
Verizon will get $4.25 billion in cash, preferred interests of $750 million and a 10% stake in the business, which will be renamed Yahoo from Verizon Media once the deal is completed. That is around half the price paid by Verizon and it has booked billions in write-downs against the business in the past.
The deal comes as Verizon focuses on expanding its 5G network and cutting its losses in a space that has been dominated by the likes of Google and Facebook.
Clothing retailer Under Armour said it has seen a strong recovery in sales after reopening its stores and now expects to deliver a better performance in 2021 than previously thought.
The company said revenue in North America was up 32% in the period while sales from its smaller international segment jumped 58%. Overall net revenue rose to $1.26 billion from $930.2 million the year before, beating the $1.13 billion forecast by analysts. Net income of $0.17 compared to a loss of $1.30 the year before.
Under Armour now expects revenue to rise by a high-teen percentage in 2021 compared to its original goal of high-single digits, while its diluted loss per share will be between $0.02 and $0.04, much better than the $0.18 to $0.20 loss previously expected.
Thomson Reuters grew at a faster rate than expected during the first quarter and is hoping this will continue for the rest of the year.
The company said total sales grew 4% in the period to $1.58 billion, beating expectations. It is aiming to deliver 3.5% to 4% growth over the full year, at the top end of expectations. Adjusted EPS, which strips out the profit from the sale of Refinitiv, jumped to $0.58 from $0.48 the year before and was comfortably ahead of the $0.42 expected by analysts.
Nutrien, the world’s largest fertiliser producer, on Monday reported strong growth in sales and said it swung to a profit during the first quarter of the year as it raised its expectations for 2021.
The company said sales were up 11% in the quarter to $4.65 billion and reported adjusted net income of $0.29 compared to a $0.12 loss the year before. Earnings beat the $0.12 profit expected by analysts. That was thanks to higher crop prices and better margins.
Nutrien said it now expects to deliver adjusted net income of between $2.55 and $3.25 per share in 2021 compared to its previous target range of $2.05 to $2.75.
How to trade top US stocks
You can trade a variety of stocks with Forex.com. Follow these easy steps to start trading the opportunities with US stocks today.
- Open a Forex.com account, or log-in if you’re already a customer.
- Search for the company you want to trade in our award-winning platform
- Choose your position and size, and your stop and limit levels
- Place the trade
Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.
Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.