Under Armour (UA: $25)
Earnings Date: Tuesday, 7:15 AM ET
Consensus: 4Q16
Revenues: $1.4B
EPS: $0.25
Year Ago Quarter Results
Revenues: $1.2B
EPS: $0.29
Key Things to Watch For in the Quarter
Analysts throughout Wall Street estimate that Under Armour will report a decrease in earnings per share by 14% to $0.25, but an increase in revenues by 20% to $1.4 billion for 4Q16. Under Armour has beat analyst estimates in the first three quarters of 2016, but shares traded down 10% and 20% in Q2 and Q3 respectively. Shares are trading down about 22% over the course of the year, taking into consideration the firm’s stock split in April of 2016. Despite the poor performance of the stock, we remain bullish on Under Armour, especially as it continues to beat analyst earnings estimates and growth in total sales. As they continue to add to their portfolio of star athletes they are develop a following on much of their merchandise.
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United Parcel Service (UPS: $117)
Earnings Date: Tuesday, 8:30 AM ET
Consensus: 4Q16
Revenues: $17B
EPS: $1.69
Year Ago Quarter Results
Revenues: $16B
EPS: $1.57
Key Things to Watch For in the Quarter
United Parcel Service is expected to report a 4.5% increase in earnings per share to $1.69 and a 4.5% increase in revenue to $17 billion. Earlier this year, UPS beat analyst estimates in Q1 and met estimates in Q2 and Q3. Shares declined slightly after the earnings release for Q1, however in the second and third quarters, shares increased by 2% and 5% respectively in the weeks following the earnings releases. United Parcel Service shares are up over 25% this year, and we expect to see more appreciation in stock, especially with their low P/E valuation of 21 and solid 2.6% dividend yield.
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Eli Lilly (LLY: $75)
Earnings Date: Tuesday, 9:00 AM ET
Consensus: 4Q16
Revenues: $5.55B
EPS: $0.97
Year Ago Quarter Results
Revenues: $5.4B
EPS: $0.78
Key Things to Watch For in the Quarter
Analysts estimate Eli Lilly to report a per share earnings increase of 24% to $0.97 and a slight increase in revenue of 3% to $5.55 billion. Over the year, Eli Lilly has missed analyst estimates on 2 of the 3 previous earnings releases. In Q1, shares remained relatively flat following the release of earnings, however the stock fell almost 4% following the Q2 report and rose 2% following the Q3 report. Shares are down almost 4% over the past year, but we remain bullish as they continue to pay investors a healthy dividend yield of 2.7% and trade at a relatively low PE ratio of 21 based on estimates for 2016 earnings, and an even lower PE for 2017.
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Equity Residential (EQR: $61)
Earnings Date: Tuesday, after market closes
Consensus: 4Q16
Revenues: $610M
EPS: $0.40
Year Ago Quarter Results
Revenues: $700M
EPS: $0.55
Key Things to Watch For in the Quarter
On average, analysts estimate that Equity Residential will report a 27% decrease in earnings per share and a 14% decrease in revenue for 4Q16. Although this real estate firm has beaten earnings in the past two quarters, it is still down almost 20% over the course of the year, providing even cheaper opportunities for entry. The company remains a strong pick for us at The Bull Market Report as it continues to trade at a low P/E ratio of 5 and provides its shareholders with a healthy dividend yield of just over 3%.
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Apple (AAPL: $122)
Earnings Date: Tuesday, 5:00 PM ET
Consensus: 1Q17
Revenues: $77.4B
EPS: $3.22
Year Ago Quarter Results
Revenues: $76B
EPS: $3.28
Key Things to Watch For in the Quarter
Analysts estimate that Apple will report a 2% decrease in earnings per share to $3.22 with a 2% increase in revenue for 1Q17. Apple barely beat earnings in the second and third quarters of 2016 while missing earnings in 1Q16. Shares were only down 4% following the release of 2016’s Q1 earnings, however in the weeks following the 2Q16 report, shares were down nearly 11%. Investors reacted very well to the release of 3Q16 earnings with shares surging 10% in the following weeks, but upon the release of 4Q16 earnings traders shaved nearly 10% off of share prices. Apple continues to impress us, especially with the returns it has provided over the last year of 26%. Relative to many other comparable stocks, Apple trades very cheap at a P/E ratio of 14. We look forward to another productive year in 2017 from the Silicon Valley based smart phone provider.
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Facebook (FB: $131)
Earnings Date: Wednesday, 2:00 PM ET
Consensus: 4Q16
Revenues: $8.5B
EPS: $1.31
Year Ago Quarter Results
Revenues: $5.8B
EPS: $0.79
Key Things to Watch For in the Quarter
Wall Street analysts expect Facebook to report a significant growth in both earnings and revenue for 4Q16. Earnings per share are estimated to increase 66% to $1.31 and revenues are estimated to increase 46% to $8.5 billion. Facebook consistently outperformed analysts’ estimates in the first three quarters of 2016. Investors reacted positively to the first two earnings releases for 2016, however shares declined significantly by 10% in the weeks following the Q3 report. We remain bullish on Facebook because of the firm’s ability to grow its pipeline and the stellar leadership and innovation of CEO Mark Zuckerberg.
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Amazon (AMZN: $830)
Earnings Date: Thursday, after market hours
(We inadvertently published that they would report last week. The information from the company was misleading.)
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.
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Visa (V: $83)
Earnings Date: Thursday, 5:00 PM ET
Consensus: 1Q17
Revenues: $4.3B
EPS: $0.78
Year Ago Quarter Results
Revenues: $3.6B
EPS: $0.69
Key Things to Watch For in the Quarter
Analysts expect Visa to report a per share earnings increase of 13% to $1.69 and a 19% increase in revenue to $4.3 billion for 1Q17. Visa beat earnings in the past few quarters, but received mixed reactions from investors upon their release. Q2 of 2016 was by far the harshest, as investors reacted to the earnings release with shares falling 4% over the weeks that followed. The stock remained quite stagnant upon the earnings releases for 3Q16 and 4Q16. Shares are trading near all-time highs, and are up $9 since last year, a 12% return over 2016. We look forward to continued growth from Visa in the coming quarters.
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Athenahealth (ATHN: $124)
Earnings Date: Friday, 8:00 AM ET
Consensus: 4Q16
Revenues: $300M
EPS: $0.51
Year Ago Quarter Results
Revenues: $260M
EPS: $0.45
Key Things to Watch For in the Quarter
Analysts estimate Athenahealth to report a per share earnings increase of 13% to $0.51 and a revenue increase of 18% to $300 million for 4Q16. They beat analysts’ estimates in Q1 and Q3 of 2016 while missing estimates in 2Q16, but to much surprise, investors reacted negatively to two of the three releases. In the weeks following the earnings releases shares were down 7%, 2%, and 15% for Q1, Q2, and Q3 respectively. Shares are down 12% over the last year; however we remain confident that Athenahealth will be able to regain some ground towards its $145 high during 2016.
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