by Todd Shaver | Jul 17, 2017 | Earnings Preview 12 PM
Netflix (NFLX: $162)
Bull Market Report Target Price: $165
Bull Market Report Sell Price: $145
Earnings Date: Monday, 4:05 PM ET
Consensus: 2Q17
Revenues: $2.8B
EPS: $0.16
Year Ago Quarter Results
Revenues: $2.1B
EPS: $0.09
Key Things to Watch For in the Quarter
Wall Street analysts estimate earnings growth of 77% to $0.16 for Netflix in 2Q17 with an increase in revenues of 31% to $2.8 billion. Netflix has beat estimates in the previous four quarters primarily due to high consumer sentiment. This has provided Netflix stockholders with significant gains over the past year, with shares climbing over 60%. As a major leader in the streaming business, Netflix will continue to outperform its competitors and the market into the new year and beyond.
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Blackstone Group (BX: $35)
Bull Market Report Target Price: $35
Bull Market Report Sell Price: We would not sell Blackstone. Now changed to $31.
Earnings Date: Thursday, 11:00 AM ET
Consensus: 2Q17
Revenues: $1.5B
EPS: $0.61
Year Ago Quarter Results
Revenues: $1.2B
EPS: $0.44
Key Things to Watch For in the Quarter
Analysts on Wall Street estimate that Blackstone will report an increase in earnings per share of 30% to $0.61 along with a 27% increase in revenue to $1.5 billion in the second quarter of 2016. Financial stocks have outperformed the market since the Republican party won the election in November. Over the past year, Blackstone’s stock has appreciated 35%. Most recently Blackstone acquired two hotels in the Los Angeles area for $100 million.
Microsoft (MSFT: $73)
Bull Market Report Target Price: $70, hereby raised to $78
Bull Market Report Sell Price: We would not sell Microsoft
Earnings Date: Thursday, 5:30 PM ET
Consensus: 2Q17
Revenues: $24 B
EPS: $0.71
Year Ago Quarter Results
Revenues: $22.5 B
EPS: $0.69
Key Things to Watch For in the Quarter
Analysts estimate consistent growth for Microsoft’s with an estimated 3% increase in earnings per share to $0.69 and a 7% increase in the company’s revenues to $24 billion. Microsoft’s ability to beat estimates in the past four quarters has been reflected in the stock’s 37% appreciation over the past year. With the recent release of new computer products and improvements in software, we expect Microsoft to continue its trend into the coming years.
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Athenahealth (ATHN: $143)
Bull Market Report Target Price: $125, hereby changed to $158
Bull Market Report Sell Price: $113, hereby changed to $132
Earnings Date: Friday, 8:00 AM ET
Consensus: 2Q17
Revenues: $300 M
EPS: $0.39
Year Ago Quarter Results
Revenues: $262 M
EPS: $0.34
Key Things to Watch For in the Quarter
Analysts estimate that Athenahealth will report growth in earnings per share of 15% to $0.39 and a revenue increase of 14% to $300 million for 2Q17. When Athena missed estimates in the first quarter of 2017 the stock took about a 10% hit, but has since recovered and is currently up 45% since it bottomed out in early May. Despite a slight overvaluation compared to earnings, we believe Athena’s network-based medical services will continue to drive its growth in future quarters.
by Todd Shaver | May 15, 2017 | Earnings Preview 12 PM
The Home Depot (HD: $157)
Bull Market Report Target Price: $160
Bull Market Report Sell Price: $144
Earnings Date: Tuesday, 9:00 am ET
Consensus: 1Q17
Revenues: $24 B
EPS: $1.61
Year Ago Quarter Results
Revenues: $23 B
EPS: $1.44
Key Things to Watch For in the Quarter
Analysts across Wall Street estimate that Home Depot will report 4% growth in sales to $24 billion and 12% growth in EPS to $1.61 for 1Q17. Home Depot has provided investors with 15% returns on their investment over the past year. The stock currently trades up 33% from its 52-week low and 24 times earnings, which is comparable to its number one competitor, Lowes (LOW: $84). Home Depot’s growth has been spurred by an increase in home sales and home improvements.
We look forward to its continued growth going forward as the stock approaches our $160 target. We can't wait to raise the Target! We hereby raise the Sell Price from $144 to $150. We wouldn't want to lose our 33% gain on the stock since we added it in early 2016.
by Todd Shaver | May 8, 2017 | Earnings Preview 12 PM
Tesoro Corporation (TSO: $81)
Bull Market Report Target Price: $110
Bull Market Report Sell Price: $78
Earnings Date: Monday, after the close
Consensus: 1Q17
Revenues: $7.0 B
EPS: $0.31
Year Ago Quarter Results
Revenues: $5.0 B
EPS: $1.19
Key Things to Watch for in the Quarter
Analysts across Wall Street are looking for Tesoro to increase its top line by 42% to $7 billion, but EPS will decline almost 75% to $0.31. The stock climbed 5% in the weeks following when Tesoro beat estimates this time last year. Year-to-date, the stock is up about 6% and currently trades at a 13 PE ratio, extremely cheap compared to the industry average 39. Tesoro is expected to close a merger with Western Refining in the first half of this year. Tesoro will greatly benefit from the new firm’s combination of resources and business operations.
Mazor Robotics (MZOR: $37)
Bull Market Report Target Price: $44
Bull Market Report Sell Price: $32
Earnings Date: Wednesday, 8:30 AM ET
Consensus: 1Q17
Revenues: $11.5 M
EPS: -$0.17
Year Ago Quarter Results
Revenues: $6.5 M
EPS: -$0.24
Key Things to Watch for in the Quarter
Mazor Robotics is expected to report healthy revenue and EPS growth for 1Q17. Analysts estimate that Mazor will report a 79% increase in revenue to $11.5 million and a 30% increase in EPS to -$0.17. The firm reported earnings that missed estimates in all four quarters of 2016, and the stock has provided investors with a 200% return. The CEO made an appearance on Mad Money last week, contributing to the 55% upwards move since March 22nd, just 10 days ago. Mazor had a market cap of approximately $550 million at the beginning of this year, relatively small by Wall Street’s standards, allowing it to fly slightly unnoticed by larger investors. But not by readers of The Bull Market Report, as the cap is now at $880 million. We are now up over 120% since we added the stock in June. It is not too late to own this one.
Care Capital Properties, Inc. (CCP: $29)
Bull Market Report Target Price: $33
Bull Market Report Sell Price: $20
Earnings Date: Tuesday, 10:00 AM ET
Consensus: 2Q17
Revenues: $79 M
EPS: $0.38
Year Ago Quarter Results
Revenues: $81 M
EPS: $0.36
Key Things to Watch for in the Quarter
Analysts across Wall Street expect that Care Capital Properties will report a healthy 6% growth in EPS to $0.38 and a 3% decrease in revenue to $79 million. Although shares fell nearly 10% following the 1Q16 earnings release, the stock managed to rally over 20% from its 52-week low. Care Capital has managed to trade relatively cheap at a PE ratio of 18 compared to similar REITs which trade around 35x earnings. The stock has yielded investors a strong 8% dividend over the past year. And over the past few month’s insiders have increased their equity positions by 5%, indicating confidence in the future of the company’s business. We look forward to watching Care Capital’s continued growth in the Medical Real Estate business.
by Todd Shaver | Apr 17, 2017 | Earnings Preview 12 PM
Netflix (NFLX: $146)
Bull Market Report Target Price: $165
Bull Market Report Sell Price: $125
Earnings Date: Monday, 3:00 PM ET
Consensus: 1Q17
Revenues: $2.6B
EPS: $0.37
Year Ago Quarter Results
Revenues: $2.0B
EPS: $0.06
Key Things to Watch For in the Quarter
Wall Street analysts estimate that for 1Q17, Netflix will report healthy revenue growth at 35% to $2.64 billion and strong EPS growth of 517% to $0.37, although the percentage number is misleading since their last quarter was so tiny. Netflix beat analyst estimates in all 4 quarters of 2017. The stock reflected this success, climbing 32% over the past year. Despite beating estimates in the first two quarters of 2016, the stock fell over 10% following the earnings releases primarily due to skepticism of the firm’s ability to expand overseas memberships. However, the stock made up for these losses upon the release of 3Q16 earnings when it climbed 25%. As Netflix continues to produce positive growth numbers and expand its business abroad, we look forward to watching the price climb towards our $165 target.
Kinder Morgan (KMI: $21)
Bull Market Report Target Price: $27
Bull Market Report Sell Price: $18
Earnings Date: Wednesday, 4:30 PM ET
Consensus: 2Q17
Revenues: $3.4B
EPS: $0.18
Year Ago Quarter Results
Revenues: $3.2B
EPS: $0.18
Key Things to Watch For in the Quarter
Analyst estimates suggest that Kinder Morgan will report a 5% increase in sales to $3.35 billion and no change in EPS for 1Q17. Kinder Morgan missed analyst estimates this quarter last year, but made up for it in the last three quarters of 2016. Shares dropped 5% in the week following the firm’s release of 1Q16 earnings, however it has since made up for this small loss providing investors with a 15% return over the past year. The company has made significant progress on a number of growth projects, especially its Trans Mountain Expansion Project, which had faced pushback from environmentalists.
Kinder Morgan is one of the largest energy infrastructure companies in North America. It owns an interest in or operates approximately 84,000 miles of pipelines and 155 terminals. KMI’s pipelines transport natural gas, refined petroleum products, crude oil, condensate, CO2 and other products, and its terminals transload and store petroleum products, ethanol and chemicals, and handle products such as steel, coal and petroleum coke. It is also a leading producer of CO2 that is used for enhanced oil recovery projects primarily in the Permian basin.
Blackstone Group (BX: $29)
Bull Market Report Target Price: $36
Bull Market Report Sell Price: We would not sell Blackstone
Earnings Date: Thursday, 11:00 AM ET
Consensus: 1Q17
Revenues: $1.7B
EPS: $0.67
Year Ago Quarter Results
Revenues: $930 M
EPS: $0.31
Key Things to Watch For in the Quarter
Analysts across Wall Street expect Blackstone Group to report revenue growth of 80% to $1.7 billion and 115% growth in EPS to $0.67. The firm has beaten analyst estimates in the past 3 quarters. Share prices in the weeks following the earnings release of Q1-Q4 of 2016 reflected the company’s ability to meet analyst expectations. It’s a bit volatile after earnings releases, as in all four events, shares either climbed or dropped at least 5%. In a recent interview with CNBC, Blackstone CEO Steve Schwartzman mentioned that the firm is in advanced talks to acquire Ascend Learning, a U.S. maker of educational software, in an attempt to capitalize on the increased use of technology in American classrooms. The stock has remained relatively unchanged over the past year, but continues to provide a healthy dividend at over 5%, making it an attractive investment for dividend-seeking investors.
Visa (V: $89)
Bull Market Report Target Price: $95
Bull Market Report Sell Price: We would not sell Visa
Earnings Date: Thursday, 5:00 PM ET
Consensus: 2Q17
Revenues: $4.3B
EPS: $0.79
Year Ago Quarter Results
Revenues: $3.6B
EPS: $0.68
Key Things to Watch For in the Quarter
Analysts expect Visa will report modest growth in both earnings and revenue for 1Q17. Earnings are estimated to grow 16% to $0.79 and revenue 19% to $4.3 billion. The stock has reflected the company’s ability to beat analyst estimates throughout all of 2016 having climbed 9% over the past year. Visa leads the payment processing industry and still finds room to grow primarily because it has no direct competition within its market. Analysts expect international transaction revenues to be the engine of growth for a number of reasons, including international tourism growth. We look forward to resetting our $95 price target as the stock continues to appreciate.
by Todd Shaver | Feb 21, 2017 | Earnings Preview 12 PM
Tesla Motors (TSLA: $275)
Bull Market Report Target Price: $280
Bull Market Report Sell Price: $180
Earnings Date: Wednesday, 5:30 PM ET
Consensus: 4Q16
Revenues: $2.0B
EPS: -$0.43
Year Ago Quarter Results
Revenues: $1.75B
EPS: -$0.87
Key Things to Watch For in the Quarter
Analysts expect Tesla to report a 15% increase in revenue to $2.0 billion with a 50% improvement in the firm’s EPS to a $0.43 deficit for the fourth quarter of 2016. Tesla has missed analyst estimates each quarter. In the weeks following the releases, shares jumped 4% after the Q1 report, fell 3% after the Q2 report and remained fairly stagnant following the Q3 report. In addition to the firm’s stellar performance over the past year, providing investors with a 53% return, we are also very optimistic about the firm’s potential production levels. Despite missing their estimates of 80,000 cars last year, they have projected the production of 500,000 cars in 2018. It remains to be seen whether they can do this or not. We don't think they can do 500,000 cars, but even 200,000 will be a huge step forward.
We hereby raise our Sell Price to $250. We will raise our Target Price if the stock shoots higher than $280 and stays there.
