Netflix Q1 2021 earnings preview

$Netflix Inc(NFLX.US)$ is an Internet subscription service for watching television shows and movies. Subscribers can instantly watch unlimited television shows and movies streamed over the Internet to their televisions, computers, and mobile devices and in the United States, subscribers can receive standard definition DVDs and Blu-ray Discs.

Netflix should remain affected by the pull-forward of demand, especially in 1Q, and the company is poised to deliver on its guidance for 6 million gains during 1Q. Longer term, the platform is set to benefit from sustained subscriber momentum, pricing power and plentiful original content.

Though operating margin is expected to be extremely strong in 1Q, the bigger positive has been the inflection point in Netflix's cash flow. 

The company expects to break even on free cash flow this year and with no need to borrow to finance its programming obligations, the risk profile has dramatically improved.

-Geetha Ranganathan & Amine Bensaid, Bloomberg Analysts

Intuitive Surgical Q1 2021 earnings preview

$Intuitive Surgical(ISRG.US)$ design, manufactures and markets surgical systems. The Company offers endoscopes, endoscopic retractors and dissectors, scissors, scalpels, forceps, needle holders, electrocautery, ultrasonic cutters, and accessories during surgical procedures.

Wall Street expects a year-over-year decline in earnings on higher revenues when Intuitive Surgical reports results for the quarter ended March 2021.

Valuation our December 2021 price target of $840 is derived from a DCF with a CAPM derived WACC of 6.4% and terminal growth of +4.5%.

-Zacks, J.P.Morgan

Johnson & Johnson Q1 2021 earnings preview

$Johnson & Johnson(JNJ.US)$ manufactures health care products and provides related services for the consumer, pharmaceutical, and medical devices and diagnostics markets. The Company sells products such as skin and hair care products, acetaminophen products, pharmaceuticals, diagnostic equipment, and surgical equipment in countries located around the world. 

Johnson & Johnson's 1Q will be the barometer of how quickly hospital procedures have recovered , with a chance that the U.S. rebound may outweigh the continued likely pressure on medical-device sales in Europe. 

Consensus expects 6.2% year-over-year growth, driven by surgery. Consumer Healthcare will do well to come in-line with flat growth expectations, dragged by lower cough- and cold-remedy sales. Pharma will continue to shine, potentially beating the 8% expected growth with better performance from key drugs Darzalex, Stelara and Tremfya.

-Sam Fazeli, Bloomberg Analyst

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