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Last week was overstuffed with quarterly numbers and then global developments made it all irrelevant . . . at least until investors recover enough equilibrium to distinguish between strong and weak performance.

Two statistics sum up what we're seeing in the market. First, roughly 75% of the S&P 500 had a better quarter than Wall Street expected. So the stocks have no fundamental reason to go the other direction.

And here's the second statistic. A breathtaking 494 members of the S&P 500 dropped yesterday. Some of them are vulnerable to an escalating trade war or a cheaper Chinese currency. Most have been holding up fairly well in a strong dollar world. They haven't been cheering, but they haven't been suffering either.

That hasn't changed. Even the People's Bank of China acknowledges that nothing is irrevocable yet. Sometimes a little tension brings the negotiators closer to a deal, which we still expect by the end of the year. And in the meantime, corporate executives have had plenty of warning and time to prepare. We suspect our stocks will hold up relatively well.

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Earnings Preview: Omega Healthcare Investors (OHI: $36, down 2%)

Earnings Date: Tuesday, 5:00 PM ET

Expectations: 2Q19
Revenue: $232 million 
Net Profit: $76 million
EPS: $0.37 
Funds From Operations: $0.76

Year Ago Quarter Results
Revenue: $220 million

Net Profit: $78 million
EPS: $0.39 
Funds From Operations: $0.76

Implied Revenue Growth: 5%
Implied EPS Decline: 5%
Implied FFO Growth: flat

Target: $45
Sell Price: $28
Date Added: March 22, 2016
BMR Performance: 39%

Key Things To Watch For in the Quarter

The dividend is secure every time Omega maintains at least $0.66 per share in Funds From Operations, and since that adds up to a 7.4% yield, every quarter counts. The only real question mark we have revolves around the integration of MedEquities Realty Trust and its $628 million property portfolio.

Getting those assets for $600 million suggests that a little heavy lifting needs to happen behind the scenes in order to make it happen. Either way, absorbing 720 Skilled Nursing Facilities, 116 Assisted Living Centers and about a dozen other properties is going to  give Omega a commanding advantage in an otherwise crowded industry. 

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Earnings Preview: JBG Smith (JBGS: $38, down 2%)

Earnings Date: Tuesday, 5:00 PM ET (OR LATER IN THE WEEK)

Expectations: 2Q19
Revenue: $150 million
Net Profit: $20 million
EPS: $0.16
Funds From Operations: $0.34

Year Ago Quarter Results
Revenue: $159 million

Net Profit: $21 million
EPS: $0.17
Funds From Operations: $0.31

Implied Revenue Decline: 6%
Implied EPS Decline: 5%
Implied FFO Growth: 9%

Target: $48
Sell Price: $36
Date Added: May 16, 2019
BMR Performance: -8%

Key Things To Watch For in the Quarter

JGB Smith is new to us and relatively new to Wall Street after its spinout from popular BMR recommendation Vornado. As such, management isn't quite up to par when it comes to announcing the earnings report in advance, which means the odds of seeing the 2Q19 numbers tonight are actually on the low side. Nonetheless, since the last report came on the first Tuesday of May, the clock is ticking and we don't want you to get behind the curve.

Our expectations are relatively modest. This is a seasonally soft period for the company as many of its Washington DC tenants dither on office space decisions before the long hot summer rolls in. Furthermore, last quarter was a little weaker than the year before, so we're looking for that trend to continue.

As always in Real Estate, the crucial metric is Funds From Operations. We're looking for some year-over-year growth on that front to match what we saw in the previous quarter, but the company could still surprise us . . . not only with its timing but in terms of the amount of money it reports. All we really need is $0.23 per share, which is enough to make management's target of $0.90 a year in dividends. That's less than a 3% yield, so we'd love more.

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Earnings Preview: CyberArk (CYBR: $126, down 6%)

Earnings Date: Wednesday, 8:00 AM ET

Expectations: 2Q19
Revenue: $97 million
Net Profit: $18 million
EPS: $0.47

Year Ago Quarter Results
Revenue: $78 million

Net Profit: $13 million
EPS: $0.36

Implied Revenue Growth: 24%
Implied EPS Growth: 30%

Target: $137
Sell Price: $101
Date Added: December 22, 2018
BMR Performance: 81%

Key Things To Watch For in the Quarter

Because CyberArk is based in Israel, it's a rarity in the Technology sector to report its numbers before the U.S. markets open. As such, you'll probably know how 2Q19 went here before you see our next News Flash . . . and as we've seen lately, a lot can change in the market between then and now.

Nonetheless, we're looking forward to this even if it takes other investors a few days or weeks to digest how well this company is doing. Last quarter we were thrilled to see CyberArk start taking off big in the United States, where revenue surged 40% from what we saw in early 2018. This part of the world is already 65% of the business, so if it's accelerating, it's really going to move the needle fast and furiously.

To be fair, sales in Asia are growing even faster but that region is only 10% of the company. That's part of the charm here. CyberArk sells direct to the United States. China is a sideline. It's as close to a pure domestic play as you'll get from a foreign stock.

What we want is extremely simple. If CyberArk gives us the 24% revenue growth we anticipate and converts 18% of that money into profit, it's a success by most Silicon Valley standards. Venture capitalists tell their portfolio companies that when you add revenue growth to profit margins, any number above 40 is as perfect as it gets. CyberArk can do it.