Qnity, DuPont, Eli Lilly, and Honeywell Aerospace report this week. July nonfarm payrolls seen at 65,000. Palantir, Disney, NVIDIA scores in AlphaScala.
The week ahead stacks earnings from four portfolio companies against the July nonfarm payrolls report. Qnity Electronics and DuPont report Tuesday, Eli Lilly on Wednesday, and Honeywell Aerospace Wednesday evening. Friday brings the government's jobs print.
Qnity, the semiconductor materials supplier spun out of DuPont last year, reports before Tuesday's open. Deutsche Bank analysts said the company benefits from improving fab utilization rates and leaner customer inventories. About 20% of Qnity's semiconductor revenue ties to memory chips, according to its 2023 investor day presentation. Memory makers are shifting capacity toward high-bandwidth memory for AI chips. That crowds out supply of lower-grade memory used in consumer devices. The dynamic could pressure Qnity's consumer-oriented sales. Demand for its advanced packaging materials should remain strong. FactSet consensus calls for revenue of $1.36 billion and earnings per share of $1.07.
DuPont's results Tuesday matter for guidance and management's view on the operating environment. The Water Technologies business saw a mid-single-digit organic decline in the first quarter, tied to logistics disruptions in the Middle East. The region relies on DuPont's desalination technology. The conflict remains unresolved, so supply-chain pressure likely persisted. Oil price volatility is another input cost risk for products like Tyvek. Management said last quarter it can fully offset higher input costs through price actions. FactSet consensus: revenue of $1.81 billion, EPS of $1.76.
Eli Lilly reports Wednesday morning. Analysts expect a beat-and-raise dynamic to continue, driven by GLP-1 sales in international markets. The magnitude of the beat will likely determine the stock reaction, traders said. The April beat triggered a 10% pop on earnings day.
Two questions dominate for the U.S. obesity business. First, Foundayo, Lilly's new obesity pill approved April 1, has not started strongly. Wall Street expects roughly $103 million in second-quarter Foundayo sales, down from a $196 million consensus in late June, according to FactSet. Investors will watch CEO David Ricks on competitive dynamics versus Novo Nordisk's Wegovy pill. Second, Medicare coverage for obesity drugs began July 1, with eligible recipients paying $50 a month through 2027. Initial uptake is a key early data point. FactSet consensus: revenue of $20.73 billion, EPS of $6.01.
Honeywell Aerospace reports Wednesday evening, after the separation from Honeywell Technologies closed at the end of the second quarter. The July report from the legacy conglomerate showed Aerospace sales of $4.5 billion and segment profit of $1.1 billion. Some bad news may already be priced. The focus shifts to forward guidance and supply chain improvements, a key pillar of the investment thesis. In the first quarter, sales were held back by shortages of mechanical products. At its June investor day, the company outlined a strategy including better planning and factory throughput, supported by AI tools. Execution on that vision is now the question.
The labor market takes center stage after Fed Chairman Kevin Warsh's July press conference focused on inflation. The U.S. added fewer jobs than expected in June. The labor market remains mostly solid. Economists polled by FactSet expect July nonfarm payrolls of 65,000. The unemployment rate is seen ticking up to 4.3%. The labor force participation rate, which hit a 50-year low in June excluding the pandemic, is a variable to watch.
A stronger-than-expected report could increase the likelihood of a rate hike at the September Fed meeting, assuming no break in inflation. A softer print could give the Fed cover to look through price shocks from the Iran conflict. The market does not have a clear read yet on how Warsh interprets new data, traders said.
Leading up to Friday, Tuesday brings the June JOLTS report. Wednesday offers the ADP private payrolls survey, with consensus at 80,000. Thursday has weekly jobless claims. The ISM manufacturing and services PMIs are also on the calendar.
Palantir Technologies reports after the bell Monday. The stock carries an Alpha Score of 53 out of 100, labeled Mixed, in the Technology sector. Walt Disney reports Wednesday before the open; its Alpha Score is 47, also Mixed. NVIDIA, with an Alpha Score of 72 (Moderate), continues to trade near $200.75, up 2.93% on the day.
The July nonfarm payrolls report is due at 8:30 a.m. ET Friday.
Drafted by a large language model from the source reporting linked above, then screened by automated publishing checks. It is not read by a journalist before publication. Some articles cite our Alpha Score. Verify prices and figures against the original source. Educational coverage, not personalized advice.