Blackstone (BX: $30)
Earnings Date: Thursday, before the market opens
Consensus: 4Q16
Revenues: $1.5B
EPS: $0.64
Year Ago Quarter Results
Revenues: $880M
EPS: $0.37
Key Things to Watch For in the Quarter
2016 started off slow for Blackstone, which missed EPS estimates in the first quarter, however it made up for its losses by outperforming in the second and third quarters. Analysts estimate that the fourth quarter will be another one of healthy growth. Earnings per share are estimated to grow 40% to $0.64 along with growth in revenue of 50% to $1.5 billion. Although the firm beat analyst estimates for the past two quarters, it still saw a decline in the stock following the earnings release. These small hiccups should not be looked at too deeply especially with its year-to-date performance of 20%. As one of the leading asset managers, Blackstone has seen significant gains over the course of the past year, contributing its success to its diversified investment vehicles including private equity, real estate and hedge funds.
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PayPal (PYPL: $42)
Earnings Date: Thursday, 1:30 PM ET
Consensus: 4Q16
Revenues: $3.0B
EPS: $0.42
Year Ago Quarter Results
Revenues: $2.5B
EPS: $0.36
Key Things to Watch For in the Quarter
PayPal reported its previous quarter in October with earnings that matched estimates of $0.35. The stock surged the next day, up 10%. Analysts expect 20% growth in revenue and 16% growth in EPS for the fourth quarter of 2016. Wall Street certainly reacts to earnings with this stock. In 1Q16, when PayPal beat earnings estimates, the stock fell nearly 5% by the end of the week. We saw an even more severe reaction to the second quarter’s earnings release when shares dove 9% to $34. PayPal remains a strong buy at The Bull Market Report, especially with management raising its 3-year outlook for revenue growth to a range of 16%-17% largely because of partnerships with credit card issuers and banks.
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Tesla (TSLA: $249)
Earnings Date: Wednesday afternoon (exact time not stated)
Consensus: 4Q16
Revenues: $2.0B
EPS: -$0.28
Year Ago Quarter Results
Revenues: $1.5B
EPS: -$0.87
Key Things to Watch For in the Quarter
The early quarters of 2016 were a struggle for Tesla as they underperformed compared to estimates. The first quarter earnings report received a negative response from investors as shares declined to $211 by the end of the week earnings were released. Shares remained relatively unchanged after the announcement of the second quarter 2016 earnings report. Tesla really surprised analysts in the third quarter however, when it reported EPS of $0.71 compared to estimates of -$0.54. Analysts estimate negative EPS for the fourth quarter of 2016, however earnings are definitely headed in the right direction. We continue to support our call about Tesla, especially with their stellar leadership from the great visionary Elon Musk.
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Bristol-Myers Squibb (BMY: $50)
Earnings Date: Thursday, 10:30 AM ET
Consensus: 4Q16
Revenues: $5.1B
EPS: $0.66
Year Ago Quarter Results
Revenues: $4.3B
EPS: $0.38
Key Things to Watch For in the Quarter
Bristol-Myers has exceeded analyst’s expectations for the first three quarters of 2016, however the stock has not responded positively. Shares remained relatively unchanged with the release of the first quarter’s earnings, however when the announcement was made for the second quarter, shares fell nearly $13. The stock reacted best to the earnings release for the third quarter, when shares climbed nearly 20% in the weeks following the release. Analysts estimate a 25% increase in revenue and a 73% increase in EPS for the fourth quarter of 2016. The stock is down nearly 20% over the course of the year, however with a low PE ratio of 24 compared to the Healthcare Industry’s P/E of 60, we like the buying opportunity that this lower prices presents to us at this level.
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Celgene (CELG: $112)
Earnings Date: Thursday, 9:00 AM ET
Consensus: 4Q16
Revenues: $3.0B
EPS: $1.59
Year Ago Quarter Results
Revenues: $2.5B
EPS: $1.18
Key Things to Watch For in the Quarter
Celgene has sustained healthy growth in earnings and revenue over the course of 2016. Although investors responded fairly negatively to the first quarter results, pushing the stock down 5% over the course of the following week, the second and third quarters definitely impressed. The second quarter release resulted in a 4% increase in the stock followed by a stunning 20% jump after the release of the third quarter earnings on October 27th. Analysts estimate a 20% increase in revenue to $3 billion, and a 41% increase in earnings per share for the fourth quarter of 2016. Shares have seen modest gains over the past year, climbing almost 5%. We continue to be bullish on Celgene with a target of $125.
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Alphabet (GOOG: $819)
Earnings Date: Thursday, 4:30 PM ET
Consensus: 4Q16
Revenues: $25B
EPS: $9.65
Year Ago Quarter Results
Revenues: $21B
EPS: $8.67
Key Things to Watch For in the Quarter
Alphabet shares have climbed 15% over the past year, making it one of the best performing stocks in our portfolio. Alphabet made up for its missed earnings in the first quarter of 2016 when it beat estimates in the second and third quarters. Investors responded with fear after the first quarter report. Shares dropped $70 over the course of the next week following the release, but had recovered by the time the third quarter’s earnings were released. Estimates for 4Q16 include a 19% increase in revenue and 12% increase in earnings per share. We expect unrelenting future growth from Alphabet, as the company continues to introduce society to technological innovation.
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Microsoft (MSFT: $63)
Earnings Date: Thursday, after market hours
Consensus: 4Q16
Revenues: $25B
EPS: $0.78
Year Ago Quarter Results
Revenues: $26B
EPS: $0.78
Key Things to Watch For in the Quarter
The first three earnings releases of the year were a bit of a roller coaster for Microsoft shareholders in 2016. Shares were down 10% following the release of the first earnings report. In the second and third quarters investors responded much better with shares climbing around 5% on each occasion. Analysts do not expect much growth from Microsoft in the fourth quarter. Earnings per share are estimated to remain the same as compared to last year’s fourth quarter, and revenues are expected to decline by 4% to $25 billion. Microsoft currently trades at a PE of 30, which is relatively low compared to its competitors. We remain bullish on Microsoft with a target of $66. The stock has increased 21% since a year ago.
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Amazon (AMZN: $818)
Earnings Date: Thursday afternoon (exact time not available)
Consensus: 4Q16
Revenues: $45B
EPS: $1.35
Year Ago Quarter Results
Revenues: $36B
EPS: $1.86
Key Things to Watch For in the Quarter
Amazon has made a killing for its investors over the course of the past fiscal year. The stock is 33% higher than a year ago. Amazon reported earnings of $1.07 and $1.78 in the first and second quarters, surprising analysts by 84% and 80% respectively. The 10% jump in the stock following the first quarter highlighted investors’ excitement with the company. Analysts expect EPS for the fourth quarter of 2016 to decrease by 33% to $1.35. However revenue is expected to increase by nearly 25% to $45 billion. The recent holiday season once again proved the migration of consumers from brick and mortar to online shopping, keeping Amazon at the helm of our picks with a target of $1,000.