Apple Q2 2021 earnings preview

$Apple Inc(AAPL.US)$ designs, manufactures and markets personal computers and related personal computing and mobile communication devices along with a variety of related software, services, peripherals, and networking solutions. Apple sells its products worldwide through its online stores, its retail stores, its direct sales force, third-party wholesalers.

Chip shortages probably hurt Apple's iPhones less than Androids, while strong demand likely helped fiscal 2Q sales.

This bests consensus' 221 million and 51 million. Newer M1 chip-based Macs and iPads could get a spending boost from corporations in calendar 2H, aiding full-year sales upside.

Our scenario's $16.8 billion in Mac and iPad sales in fiscal 2Q is 35% higher than consensus. Services revenue at $67.2 billion in calendar 2021 is $1.7 billion higher, but fiscal 2Q's $15.6 billion is similar. Apple's 30x P/E shows high expectations.

-Anand Srinivasan & Marina Girgis, Bloomberg Analysts

Facebook Q1 2021 earnings preview

$Facebook Inc(FB.US)$ operates a social networking website. The Company website allows people to communicate with their family, friends, and coworkers. Facebook develops technologies that facilitate the sharing of information, photographs, website links, and videos. 

Facebook's ad-impressions growth could exceed 1Q consensus of 22% by 300-500 bps, based on our calculations, driven by increased engagement across its family of apps. 

Instagram remains a driver of revenue growth as users spend an average of 11 hours a month on the app, more than any other social-media platform. Engagement on Facebook increased more than 30%, according to SensorTower data, driven by active communities, user groups and the peer-to-peer marketplace. 

Average revenue per user (ARPU) could record the highest gain since 2Q18, with companies increasingly allocating ad budgets to Instagram and Facebook and bidding up ad prices on these platforms.

-Mandeep Singh & Jitendra Waral, Bloomberg Analysts

Qualcomm Q2 2021 earnings preview

$Qualcomm Inc(QCOM.US)$ operates as a multinational semiconductor and telecommunications equipment company. The Company develops and delivers digital wireless communications products and services based on CDMA digital technology. 

Manufacturing supply constraints at Samsung and TSMC may be key near-term impediments to Qualcomm sales through June. Qualcomm could cede some lower-end share to Mediatek but higher-end demand of Apple, Xiaomi and Samsung devices likely propel sales growth in its fiscal 2021.

Auto and IoT shipments are also likely limited through June, potentially aiding calendar 2H sales. Wider 5G adoption and higher RF content should help Qualcomm's QCT segment sales expand by 55% in fiscal 2021 to $25.6 billion. Licensing sales (QTL segment) is likely to see a more subdued 13% growth. Margin expansion may be 2H loaded.

Our scenario’s $31.4 billion in fiscal 2021 sales, 60% gross margin and $7.44 EPS are modestly higher than consensus. 

-Anand Srinivasan, Bloomberg Analyst

Shopify Q1 2021 earnings preview

$Shopify Inc(SHOP.US)$ provides a cloud-based commerce platform. The Company offers a platform for merchants to create an omni-channel experience that helps showcase the merchant's brand.

Shopify's stellar volume growth will likely continue in 1Q, potentially fueling 80% plus sales growth driven by increased online spending. Shopify Plus customers could contribute 25-30% of monthly recurring revenue, as more large merchants migrate to Shopify from rival software providers. 

We also anticipate management commentary about new merchants joining the platform to be positive, driven by the recent economic improvement in North America, which drives new business formations.

Strong revenue growth could drive adjusted operating margin to be in high-double digits, although we expect management outlook about continued strong margins in 2021 to be muted. As growth normalizes in 2021 and returns to 30-40% levels, we expect margins to fall back in single digits also.

-Anurag Rana, Bloomberg Analyst

Boeing Q1 2021 earnings preview

$Boeing Co(BA.US)$ together with its subsidiaries, develops, produces, and markets commercial jet aircraft, as well as provides related support services to the commercial airline industry worldwide. The Company also researches, develops, produces, modifies, and supports information, space, and defense systems, including military aircraft.

Fewer deliveries than expected may pull revenue and profit lower while cash burn may reach $3.5 billion as airlines use excess pre-delivery payments for aircraft deliveries and inventory expands. Undelivered 787s may boost inventory by almost $3 billion. 

Final payments for Max planes generate little to no cash since Boeing lets key clients use excess pre-payments. With 77 total deliveries, commercial revenue may drop 18% to $5.2 billion on an operating loss of $520 million.

Global Services revenue may fall 20% to $3.7 billion on margins at 8.5% on weak demand for services. Defense, Space and Security revenue may rise slightly at $6.2 billion on Ebit at $590 million, or 9.5% margin. Overall, revenue could fall 11% to $15 billion on operating profit of $200 million. Cash and investments may drop to $21 billion. 

-George Ferguson & Francois Duflot, Bloomberg Analysts

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