AstraZeneca Q1 2021 earnings preview
$AstraZeneca PLC(AZN.US)$ operates as a holding company. The Company, through its subsidiaries, researches, manufactures and sells pharmaceutical and medical products. AstraZeneca focuses its operations on eight therapeutic areas, including gastrointestinal, oncology, cardiovascular, respiratory, central nervous system, pain control, anaesthesia.
AstraZeneca is expected to be one of the stars of 1Q in terms of growth, much of it driven by underlying performance with some help from currency. Sales are being fueled by seven drugs, with Calquence and Fasenra recording the largest increases.
The weaker dollar will further help boost sales. Astra's guidance does have some room for improvement.
-Sam Fazeli, Bloomberg Analyst
Chevron Q1 2021 earnings preview
$Chevron Corp(CVX.US)$ is an integrated energy company with operations in countries located around the world. The Company produces and transports crude oil and natural gas. Chevron also refines, markets, and distributes fuels, as well as is involved in chemical and mining operations, power generation, and energy services.
Chevron's refining and chemicals businesses are likely to weigh down its earnings recovery as the Texas freeze and weak margins dampen cash generation. Upstream could see a boost from higher prices across the board, but with lower contribution from long-term LNG contracts that typically lag behind Brent crude by six months.
Chemicals will likely be the most affected, with partner Phillips 66 warning that the Texas power outages had a negative impact on operating costs and utilization rates. That could push Chevron to be a net outspender of cash in the quarter after dividends, but it shouldn't raise concerns over the company's long-term sustainability, thanks to a strong balance sheet.
-Fernando Valle & Brett Gibbs, Bloomberg Analysts
Phillips 66 Q1 2021 earnings preview
$Phillips 66(PSX.US)$ is a downstream energy company. The Company's operations include oil refining, marketing, and transportation. Phillips 66's operations also include chemical manufacturing and power generation.
Plant downtime and elevated energy costs due to winter storms impeded Phillips 66's ability to begin repairing its balance sheet in 1Q and instead could drive upward of $950 million in overspending (excluding working capital) following company guidance.
Phillips' $2.5 billion of cash lets it withstand the storm, but the hit limits dividend expansion and greater growth spending this year, with $3.3 billion committed to dividends and capital spending in 2021 after tacking on $4 billion of debt in 2020. Due to a high distillate yield, the company's refining margin is likely to trail peers since gasoline cracks doubled during the period vs. a 15% rise in diesel.
Rising prices weigh on Marketing and Specialty margin, while Phillips signaled significant storm impacts within its Chemicals business.
-Fernando Valle & Brett Gibbs, Bloomberg Analysts
Click here to check out: Earnings Calendar for April.
Source: Bloomberg
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