by Todd Shaver | Aug 14, 2017 | Earnings Preview 6 AM
Home Depot (HD: $155)
Bull Market Report Target Price: $160
Bull Market Report Sell Price: $144
Earnings Date: Tuesday, 8:00 AM ET
Consensus: 2Q17
Revenues: $28 billion
EPS: $2.21
Year Ago Quarter Results
Revenues: $ 26.5 billion
EPS: $1.97
Key Things to Watch For in the Quarter
Home Depot is expected to report a 5% increase in revenues and a 12% increase in earnings per share for 2Q17. Home Depot has beaten estimates in each of the past four quarters, contributing to its 13% year-over-year appreciation. The stock pays a 2.3% dividend and currently trades at 23 times earnings, which is slightly cheaper than its most direct competitor Lowes. We are confident that Home Depot will continue to post positive earnings growth as the economy continues to show signs of stability.
by Todd Shaver | Jul 31, 2017 | Earnings Preview 6 AM
Shopify (SHOP: $92)
Bull Market Report Target Price: $90
Bull Market Report Sell Price: $65
Earnings Date: Tuesday, 8:00 AM ET
Consensus: 2Q17
Revenues: $145 million
EPS: -$0.07
Year Ago Quarter Results
Revenues: $85 million
EPS: -$0.04
Key Things to Watch For in the Quarter
Analysts estimate that Shopify will report a 65% increase in revenue to $144 million but still show earnings slightly in the red. Shopify has beaten estimates in the past four quarters, contributing to the 150% appreciation in the stock since this time last year. The stock has started to level out over the past few months in the $90-$92 range, but we are confident this is merely a hesitation before the next breakout.
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Apple (AAPL: $149)
Bull Market Report Target Price: $155
Bull Market Report Sell Price: We would not sell Apple
Earnings Date: Tuesday, 04:00 PM ET
Consensus: 2Q17
Revenues: $42 billion
EPS: $1.57
Year Ago Quarter Results
Revenues: $45 billion
EPS: $1.42
Key Things to Watch For in the Quarter
Analysts across Wall Street expect that Apple will report a healthy 10% growth in EPS to $1.57 and a 5% decrease in revenue to $42 billion. Apple has beaten estimates in each of the past four quarters. This success has contributed to the 40% appreciation in the stock since this same time last year. Although Apple’s top line has slowed down, we expect its innovative board and executives will roll out offerings to spur growth in future quarters.
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Carlyle Group (CG: $20)
Bull Market Report Target Price: $22
Bull Market Report Sell Price: $13
Earnings Date: Wednesday, 8:00 AM ET
Consensus: 2Q17
Revenues: $680 million
EPS: $0.43
Year Ago Quarter Results
Revenues: $530 million
EPS: $0.35
Key Things to Watch For in the Quarter
Carlyle Group is expected to report strong revenue and EPS growth for 2Q17. Analysts estimate that Carlyle will report an 18% increase in revenue and a 23% increase in EPS. Despite having only beaten analyst estimates in two of the past four quarters, the stock is still up over 20% since this time last year. Carlyle’s stock currently trades at a PE ratio of 23, which is extremely cheap compared to the industry’s average PE of well over 50.
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Tesla (TSLA: $335)
Bull Market Report Target Price: $350
Bull Market Report Sell Price: $280
Earnings Date: Wednesday, 04:00 PM ET
Consensus: 2Q17
Revenues: $2.5 B
EPS: -$1.80
Year Ago Quarter Results
Revenues: $1.3 B
EPS: -$1.61
Key Things to Watch For in the Quarter
Analysts across Wall Street expect that Tesla will report revenue growth of 100% to $2.5 billion and an increase in its earnings deficit to -$1.80 per share. Tesla’s is unique because unlike most equities its price is not driven by earnings. Yet. Of the past four quarters, Tesla has only beaten estimates once, but the stock has still appreciated 45% year-over-year. Tesla recently took a 20% hit in early July from the $380 range all the way down to $308, providing investors with a window of opportunity to enter the stock.
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Square (SQ: $26)
Bull Market Report Target Price: $29
Bull Market Report Sell Price: $20
Earnings Date: Wednesday, 04:00 PM ET
Consensus: 2Q17
Revenues: $535 M
EPS: -$0.05
Year Ago Quarter Results
Revenues: $440 M
EPS: -$0.08
Key Things to Watch For in the Quarter
We believe Square will increase its revenues by 22% to $440 million and improve its earnings deficit. Square has beaten estimates the past four quarters rewarding stockholders with 135% year-over-year appreciation. We are very bullish on Square as they continue to break all-time highs and continue to set themselves up for growth in future quarters.
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Annaly Capital Management (NLY: $11.93)
Bull Market Report Target Price: $12
Bull Market Report Sell Price: $11
Earnings Date: Wednesday, 04:00 PM ET
Consensus: 2Q17
Revenues: $595 M
EPS: $0.30
Year Ago Quarter Results
Revenues: $455 M
EPS: $0.29
Key Things to Watch For in the Quarter
We expect Annaly will report EPS growth of 3% to $0.30 and a 23% increase in revenue. Annaly has beaten estimates in two of the past four quarters and is up 7% year-over-year. Yielding a 10% dividend makes Annaly an extremely attractive stock for investors who are looking for both growth and income potential.
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Sabra Health Care REIT (SBRA: $23)
Bull Market Report Target Price: $30
Bull Market Report Sell Price: $21
Earnings Date: Wednesday, 04:00 PM ET
Consensus: 2Q17
Revenues: $55 M
EPS: $0.29
Year Ago Quarter Results
Revenues: $57 M
EPS: $0.53
Key Things to Watch For in the Quarter
Sabra is expected to report a slight decrease in revenue and a big drop in earnings for 2Q17. Sabra has missed estimates in the last three of four quarters, but its stock has remained fairly flat over the past year, only losing about 3% of its overall value. It still trades at a relatively cheap PE of 16 and yields a 7.4% dividend. We expect Sabra to turn things around as the economy continues to show signs of strong growth.
by Todd Shaver | Jul 26, 2017 | Earnings Preview 6 AM
We are a shade late this week. We had computer and internet issues. Sorry.
Alphabet (GOOG: $954)
Bull Market Report Target Price: $1000
Bull Market Report Sell Price: We would not sell Alphabet
Earnings Date: Monday, 4:00 PM ET
Consensus: 2Q17
Revenues: $26 billion
EPS: $5.01
Alphabet reported a heavy drop in 2Q17 EPS due to the $2.7 billion fine from the European antitrust regulators. Shares currently trade down about 3% as the company missed expectations on its cost per click which rose by 23%. We are still bullish on Alphabet as they continue to innovate and bring to market new technologies like their most recent Google Home.
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Eli Lilly (LLY: $82)
Bull Market Report Target Price: $88
Bull Market Report Sell Price: $76
Earnings Date: Tuesday, 8:00 AM ET
Consensus: 2Q17
Revenues: $5.4 B
EPS: $1.05
Year Ago Quarter Results
Revenues: $5.5 B
EPS: $0.86
Lilly reported yesterday with revenues up 8% and earnings up a powerful 22% to $1.11. Despite having missed estimates in two of the past four quarters, the stock is up 3% since this time last year and is currently trading 28% above its 52-week-low. Like other companies in our portfolios, Eli Lilly is also trading relatively cheap in comparison to the overall industry. Eli’s PE is 40 while Healthcare industry PE is around 60.
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Equity Residential (EQR: $66)
Bull Market Report Target Price: $85
Bull Market Report Sell Price: $55
Earnings Date: Tuesday, 4:00 PM ET
Consensus: 2Q17
Revenues: $610 M
EPS: $0.35
Year Ago Quarter Results
Revenues: $595 M
EPS: $0.59
Key Things to Watch For in the Quarter
The company reported yesterday that it had net income of $195 million, or 53 cents per share, well above the Street estimate. Revenues came in at $613 million. Although Equity Residential has beaten estimates in the past four quarters, the stock still trades down 5% from this time last year. However, EQR is trading 13% above its 52-week low indicating positive investor sentiment within the Real Estate industry. The stock currently trades at a PE ratio of 20, relatively low compared to the industry’s PE of 40.
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PayPal (PYPL: $58)
Bull Market Report Target Price: $56
Bull Market Report Sell Price: We would not sell PayPal
Earnings Date: Wednesday, 11:00 AM ET
Consensus: 2Q17
Revenues: $3.1 B
EPS: $0.43
Year Ago Quarter Results
Revenues: $2.7 B
EPS: $0.36
Key Things to Watch For in the Quarter
Analysts across Wall Street expect that PayPal will report a healthy 16% growth in EPS to $0.36 and a 14% increase in revenue to $3.1 billion. PayPal has either met or beaten estimates in each of the past four quarters. This success has contributed to the 55% appreciation in the stock since this same time last year. We expect PayPal to continue its top line growth as more transactions shift away from cash and onto digital platforms.
PayPal has hit our Target of $56. We still love the company and expect big things in the future. We hereby raise our Price Target to $66, and maintain our Sell Price as “We would not sell PayPal.”
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Facebook (FB: $165)
Bull Market Report Target Price: $165
Bull Market Report Sell Price: $140
Earnings Date: Wednesday, 4:00 PM ET
Consensus: 2Q17
Revenues: $9.2 B
EPS: $1.12
Year Ago Quarter Results
Revenues: $6.4 B
EPS: $0.97
Key Things to Watch For in the Quarter
Analysts across Wall Street expect that Facebook will report strong EPS growth of 15% growth to $0.97 and a 30% increase in revenue to $9.2 billion. Despite having missed estimates last quarter, Facebook’s stock has climbed 36% since this time last year. In addition to the flagship Facebook.com, Zuckerberg has been innovating through his various offerings which include WhatsApp, Instagram, and Oculus Virtual Reality. We expect Facebook will continue to thrive as it tries to connect people throughout the world.
Facebook has hit our Target of $165. We added the stock at $97 a year and half ago and have been beating the drums every chance we get. We are still beating the drums. This company is amazing and is changing the world. We hereby raise our Target Price to $178 and raise the Sell Price from $140 to $155.
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Omega Healthcare Investors (OHI: $33)
Bull Market Report Target Price: $45
Bull Market Report Sell Price: $28
Earnings Date: Wednesday, 4:00 PM ET
Consensus: 2Q17
Revenues: $235 M
EPS: $0.49
Year Ago Quarter Results
Revenues: $185 M
EPS: $0.57
Key Things to Watch For in the Quarter
Analysts estimate that Omega will report a 20% increase in revenue to $235 million and a 14% decrease in EPS to $0.49. Although Omega beat estimates in three of the past four quarters, the stock is down 6% this past year. This price depreciation has provided investors with an opportunity for entry especially as the stock only trades at a PE of 16 compared to the industry average of 60.
The stock hasn’t gone anywhere in a year, but that’s OK as we love the almost 8% dividend it pays.
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CBRE (CBG: $38)
Bull Market Report Target Price: $40
Bull Market Report Sell Price: $32
Earnings Date: Thursday, 8:00 AM ET
Consensus: 2Q17
Revenues: $3.4 B
EPS: $0.53
Year Ago Quarter Results
Revenues: $3.2 B
EPS: $0.52
Key Things to Watch For in the Quarter
CBRE is expected to report moderate revenue and EPS growth for 1Q17. Analysts estimate that CBRE will report a 6% increase in revenue to $3.4 billion and a 2% increase in EPS to $0.53. The firm reported earnings that beat estimates in 3 of the last 4 quarters and provided investors with a 31% return year-over-year. CBRE’s stock currently trades at a PE ratio of 20, which is extremely cheap compared to the industry’s average PE of 91.
We love this one and can’t wait for it to hit $40 so we can raise the Target. The company is doing amazing things in real estate, saving companies money and manpower, and they are so low-key very few investors know about the firm. The market cap is a shade under $13 billion now, and this coming weekend we will give you some examples of what they do for their customers and why $38 for this stock will seem cheap in a year. We hereby raise the Sell Price from $32 to $35. We don’t want to lose the 48% gains we have in the stock since we added it at $26 last year.
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United Parcel Service (UPS: $113)
Bull Market Report Target Price: $125
Bull Market Report Sell Price: $106
Earnings Date: Thursday, 8:00 AM ET
Consensus: 2Q17
Revenues: $15.5 B
EPS: $1.47
Year Ago Quarter Results
Revenues: $14.6 B
EPS: $1.43
Key Things to Watch For in the Quarter
UPS is expected to report moderate revenue and EPS growth for 2Q17. Analysts estimate that UPS will report a 5% increase in revenue to $15.5 billion and a 3% increase in EPS to $1.47. The firm reported mixed earnings in the last four quarters. Having only beat estimates once, the stock has underperformed the market at a mere 2% increase. It currently trades at a PE ratio of 28, which is slightly high compared to its competitors in the 25 range.
We still like the company a lot, as they have to deliver all those packages from Amazon! We are maintaining our Price Target of $125.
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Bristol Myers Squibb (BMY: $56)
Bull Market Report Target Price: $77
Bull Market Report Sell Price: $51
Earnings Date: Thursday, 8:00 AM ET
Consensus: 2Q17
Revenues: $5.1 B
EPS: $0.73
Year Ago Quarter Results
Revenues: $4.9 B
EPS: $0.69
Key Things to Watch For in the Quarter
Bristol Myers is expected to report moderate revenue and EPS growth for 2Q17. Analysts estimate that Bristol will report a 4% increase in revenue to $5.1 billion and a 6% increase in EPS to $0.73. Although Bristol Myer beat estimates in three of the past four quarters, the stock is down over 25% this past year. This price depreciation has provided investors with cheaper opportunities for entry especially as the stock only trades at a PE of 20 compared to the industry average of 60.
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Celgene (CELG: $137)
Bull Market Report Target Price: $135
Bull Market Report Sell Price: $115
Earnings Date: Thursday, 8:00 AM ET
Consensus: 1Q17
Revenues: $3.2 B
EPS: $1.78
Year Ago Quarter Results
Revenues: $2.8 B
EPS: $1.44
Key Things to Watch For in the Quarter
Analysts across Wall Street expect that Celgene will report both strong revenue and EPS growth of 15% and 24% to $3.2 billion and $1.44 respectively. while Amazon will increase its revenues by 19% to $37 billion, it will decrease its EPS nearly 20% to $1.42. Amazon has beat estimates in all of the past 4 quarters and has helped return investors 27% since this time last year. Celgene still only trades at a PE ratio of 50, making it relatively cheap compared to the industry’s PE of 60.
Since June at $114, the stock has gone straight up. It has reached our Target of $135, but we still love this huge company ($107 billion market cap,) so we hereby raise our Price Target to $150 and raise our Sell Price from $115 to $125. We added the stock at $95 a year ago and are now up 44% as it just set a new all-time high last week. Lovin’ it.
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Amazon (AMZN: $1,040 – a new all-time high)
Bull Market Report Target Price: $1,100
Bull Market Report Sell Price: $875
Earnings Date: Thursday, 4:00 PM ET
Consensus: 1Q17
Revenues: $37 B
EPS: $1.42
Year Ago Quarter Results
Revenues: $30 B
EPS: $1.78
Key Things to Watch For in the Quarter
Wall Street expects that while Amazon will increase its revenues by 19% to $37 billion, it will show a decrease in EPS of nearly 20% to $1.42. Amazon has beat estimates in three the past four quarters and has helped carry many tech heavy indices. Amazon traded at $765 this time last year and has since climbed over 35% to its current levels. This past Prime Day, Amazon’s version of Black Friday, the company broke its own record for the largest online shopping day in history.
We are keeping the Target Price at $1100, but raise our Sell Price to $970 from $875.
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First Solar (FSLR: $45)
Bull Market Report Target Price: $55
Bull Market Report Sell Price: $28
Earnings Date: Thursday, 4:00 PM ET
Consensus: 2Q17
Revenues: $540 M
EPS: $0.10
Year Ago Quarter Results
Revenues: $935 M
EPS: $0.87
Key Things to Watch For in the Quarter
This company is regrouping, as we know, and the comparisons are not pretty. Analysts estimate that First Solar will report a decrease in revenues by 43% to $540 million and an 88% decrease in EPS to $0.10. Although First Solar has beat estimates in the past four quarters, the stock is down 5% this year.
The stock is inching its way back, little by little. We certainly had bad timing on the addition of the stock to our Special Opportunities portfolio last year in February, but we are believers in the business and the company and have had amazing patience with this one. We hereby raise the Sell Price from $28 to $39.
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Ventas (VTR: $68)
Bull Market Report Target Price: $82
Bull Market Report Sell Price: $43
Earnings Date: Friday, 8:00 AM ET
Consensus: 2Q17
Revenues: $880 M
EPS: $0.44
Year Ago Quarter Results
Revenues: $850 M
EPS: $0.42
Key Things to Watch For in the Quarter
Wall Street expects that Ventas will report moderate EPS growth of 7% to $0.45 and a 4% increase in revenue to $880 million. Although the firm has beat estimates in the past four quarters, its stock is down 8% over the past year. The company’s 5% dividend and relatively cheap PE of 35 make it an attractive stock in today’s markets. This is not a small company, as the market cap of $25 billion tells us.
We hereby raise our Sell Price from $43 to $61.
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Welltower (HCN: $73)
Bull Market Report Target Price: $84
Bull Market Report Sell Price: $60
Earnings Date: Friday, 8:00 AM ET
Consensus: 2Q17
Revenues: $1 B
EPS: $0.44
Year Ago Quarter Results
Revenues: $1 B
EPS: $0.54
Key Things to Watch For in the Quarter
Analysts estimate that Welltower will report no change in revenues at $1 billion and a 18% decrease in EPS to $0.44. Although Welltower has beat estimates in the past 4 quarters, its stock is down 7% this past year. This move has provided investors with cheaper opportunities for entry especially as the stock continues to pay a 5% dividend and trades at a PE that is 25% lower than its industry’s.
We hereby raise the Sell Price from $60 to $68.
by Todd Shaver | May 23, 2017 | Earnings Preview 6 AM
Splunk (SPLK: $66)
Bull Market Report Target Price: $75
Bull Market Report Sell Price: $60
Earnings Date: Thursday, 04:30 PM ET
Consensus: 1Q18
Revenues: $235 M
EPS: -$0.04
Year Ago Quarter Results
Revenues: $185 M
EPS: -$0.02
Key Things to Watch For in the Quarter
Analysts expect Splunk will report revenue growth of 26% to $235 million for 1Q18. Splunk has beat estimates in the past four quarters, which has been reflected in the stock’s 22% increase over the past year. Splunk’s services provide valuable insight into data generated by websites, applications, servers, and networks. Recently, Splunk has been recognized by LinkedIn as one of the top company’s for attracting and retaining talent. We look forward to watching Splunk grow its top line as its top notch employees continues to provide data interpretation for their customers. The bottom line needs work, but we are willing to wait as the company continues to grow rapidly. We are raising the Sell Price to $60.
by Todd Shaver | May 2, 2017 | Earnings Preview 6 AM
Twilio (TWLO: $34)
Bull Market Report Target Price: $72
Bull Market Report Sell Price: $29
Earnings Date: Tuesday, 05:00 PM ET
Consensus: 1Q17
Revenues: $83 M
EPS: -$0.06
Year Ago Quarter Results
Revenues: N/A
EPS: N/A
Key Things to Watch For in the Quarter
Twilio went public a year ago at $15, and currently trades up 125% from its IPO price at $34. In the first few months of trading the markets were all over Twilio, driving its price up to $71. It has since fallen from its 52-week high by about 50% and has recently shown support in the $27 range. We cannot compare analyst estimates for 1Q17 to 1Q16 as the company was not yet public, however in comparison to the first three quarters of Twilio’s time as a public company analysts estimate that Twilio will report strong revenues, and a reduction in the earnings deficit. We continue to expect big things from this company. Watch the revenue picture here closely. We expect $370 million for 2017 and are hopeful for $500 million in 2018.
by Todd Shaver | Jan 31, 2017 | Earnings Preview 6 AM
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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