by Todd Shaver | Jan 24, 2017 | Earnings Preview 6 AM
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.
by Todd Shaver | Nov 11, 2016 | Earnings Preview 6 AM
Opko Health reported a loss of 3 cents per share vs. a profit of 25 cents last year. Revenues more than doubled to $300 million up from $145 million last year. The stock was down 7% on Monday, but has since recovered about 3% to $9.40. Trading at a PE ratio of 40, Opko is not cheap, but is less expensive than many companies in the Healthcare industry. A number of institutional investors are also bullish. California State Teachers Retirement System and Teachers Advisors increased their positions in Opko Health by 6% and 4% respectively. In addition, BlackRock Group (BLK) boosted its stake by 19% earlier in the year, providing us with confidence the firm has strong growth prospects ahead.
Revenues were very strong and at this rate the company should be able to produce substantial profits in 2017. With a market cap of $5 5 billion Opko has great potential. We are willing to wait for profits to surface as long as revenues continue to grow at this high rate.
by Todd Shaver | Nov 9, 2016 | Earnings Preview 6 AM
This is our last Earnings Preview of this quarter. None of our stocks report this week; there are two next week (14th); none the week of the 21st; and one the week of the 28th.
The Week of 11/14
Opko Health (OPK: $9.28)
Earnings Date: Monday, no time set
Consensus: 3Q2016
Revenues: $320 million
EPS: -$0.03
Year Ago Quarter Results
Revenues: $143 million
EPS: $0.25
Key Things to Watch For in the Quarter
Analysts on the Street expect Opko to report extraordinary growth in revenue of 125% to $320 million for the third quarter. However, they are not looking for profits yet as analysts expect a loss of $0.03 per share. But note that the firm has outperformed estimates in previous quarters. In 3Q15 consensus projected EPS of -$0.02, which Opko strongly outperformed by $0.23 per share.
A number of insider transactions have occurred in the early days of November, showing a sense of confidence from senior management. Two executives bought blocks of 10,000 shares at $9.50. The company currently trades at a PE ratio of 41, which is considered quite cheap when compared to the Healthcare industry’s PE of 65. As a firm focused on establishing leading positions in large and rapidly growing medical markets, Opko Health continues to be a bullish position for us here at The Bull Market Report.
Home Depot (HD: $125)
Earnings Date: Tuesday, Approx. 7:00 AM
Consensus: 3Q2016
Revenues: $23 billion
EPS: $1.58
Year Ago Quarter Results
Revenues: $22 billion
EPS: $1.36
Key Things to Watch For in the Quarter
Home Depot is expected to report a 16% increase in earnings per share for the third quarter of 2016. This healthy growth forecast is also represented in a consensus projected revenue increase of 4.5% to $23 billion. As the world’s largest home improvement retailer with over 2,200 stores, Home Depot shows no signs of slowing growth, especially when the number of residential building permits continues to grow at a consistent pace. In addition to dominating market share, Home Depot also provides investors with a relatively cheap entry opportunity. The stock is trading at a PE ratio of 20, which is about 50% lower than the Retail industry’s 36 PE. With strong management and a positive growth outlook, The Bull Market Report remains bullish.
The Week of 11/28
Splunk (SPLK: $60)
Earnings Date: Tuesday – Approx. 4:00 PM
Consensus: 3Q2016
Revenues: $230 million
EPS: $0.08
Year Ago Quarter Results
Revenues: $175 million
EPS: $0.05
Key Things to Watch For in the Quarter
Analysts expect significant growth from Splunk for the third quarter of 2016. Wall Street consensus projects revenue to grow by 32% to $230 million, and earnings per share to grow by 60% to $0.08. Splunk is a multinational corporation that produces software for searching, monitoring, and analyzing large amounts of machine-generated data. Its competitive advantage is enabling customers to gain real-time operational intelligence by harnessing the value of their data. Year-to-date, Splunk’s stock has remained relatively unchanged, only up $1, but has risen sharply since the lows of February when it hit $30. Strong revenues this quarter makes us feel good about this investment for the future. Profits will come in time.
by Todd Shaver | Oct 31, 2016 | Earnings Preview 6 AM
Gilead Sciences (GILD: $74)
Earnings Date: Tuesday, 4:00 PM ET
Consensus: 3Q2016
Revenues: $7.4 billion
EPS: $2.74
Year Ago Quarter Results
Revenues: $8.3 billion
EPS: $3.22
Key Things to Watch For in the Quarter
Analysts throughout Wall Street estimate that Gilead Sciences will report a 14% decrease in earnings per share to $2.74 along with a 10% decrease in revenue to $7.4 billion. The stock’s relatively low P/E ratio of 6.5 compared to competitors Biogen and Amgen, which are more than double, suggests that shares are undervalued at their current price. Year-over-year, the stock is down around 30%, however it has successfully outperformed the Biotech index by a couple of percentage points over the past month. We remain bullish, as this stock continues to provide cheaper points of entry.
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Facebook (FB: $131)
Earnings Date: Wednesday, 4:00 PM ET
Consensus: 3Q2016
Revenues: $7 billion
EPS: $0.97
Year Ago Quarter Results
Revenues: $4.5 billion
EPS: $0.57
Key Things to Watch For in the Quarter
Wall Street analysts estimate significant growth for Facebook in the third quarter. With estimated 70% growth in earnings per share and 55% growth in revenue, the social media monster is continuously grabbing a larger slice of the digital advertising pie. The company’s forward P/E ratio (measure of price-to-earnings using forecasting earnings) of 26 suggests it is undervalued compared the Internet Information Provider sector P/E of 50. The stock is up over 25% in the last year, and we expect it to keep going higher driven primarily by its ability to market ads to the appropriate group of users.
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First Solar (FSLR: $41)
Earnings Date: Wednesday, 4:00 PM ET
Consensus: 3Q2016
Revenues: $985 million
EPS: $0.74
Year Ago Quarter Results
Revenues: $1.27 billion
EPS: $3.41
Key Things to Watch For in the Quarter
Analysts expect First Solar to report a 22% decrease in top line growth compared to the same quarter last year. Even more significantly, the firm is expected to report a 78% reduction in earnings per share. Down almost 30% year-over-year, primarily plagued by cheap oil and slowing economic growth, First Solar is currently trading at a PE ratio of 6 making this a good buying opportunity. As a leader in the alternative energy camp, First Solar has significant potential for growth, especially with the recent rise of oil prices.
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Brookdale Senior Living (BKD: $14.67)
Earnings Date: Wednesday, 4:00 PM ET
Consensus: 3Q2016
Revenues: $1.26 billion
EPS: $0.62
Year Ago Quarter Results
Revenues: $1.24 billion
EPS: $0.59
Key Things to Watch For in the Quarter
Analysts across Wall Street are expecting relatively small growth this quarter for Brookdale. Per share earnings are expected to increase by 5%, while revenue is expected to inch up by 2%. A number of institutional investors, including BlackRock and Teachers Advisors, have increased their positions in the company over the last year seeing a potential for future growth in the stock that is currently trading about 30% off of its 52-week high. As a large portion of the nation’s population enters their later years, Brookdale’s retirement centers and assisted living homes have strong growth potential.
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Mazor Robotics (MZOR: $22)
Earnings Date: Thursday, time unstated
Consensus: 3Q2016
Revenues: $7.7 million
EPS: -$0.19
Year Ago Quarter Results
Revenues: $5.0 million
EPS: -$0.24
Key Things to Watch For in the Quarter
Analysts are expecting significant growth for Mazor this quarter with a 20% estimated increase in earnings, and 44% estimated growth in revenue. Having nearly doubled over the course of the last year, the stock shows positive signs for future growth. This Israel-based medical device company that develops and markets surgical guidance systems, specifically for spinal surgery, has outperformed over the last year compared to other firms in its industry. We remain bullish on the stock as we have recently seen a number of institutional investors increase their positions by up to 60%.
by Todd Shaver | Oct 26, 2016 | Earnings Preview 6 AM
October 26, 2016
Tesla (TSLA: $203)
Earnings Date: Wednesday, 4:30 PM ET
Consensus: 3Q2016
Revenues: $2.3B
EPS: $0.07
Year Ago Quarter Results
Revenues: $965M
EPS: -$0.57
Key Things to Watch For in the Quarter
Tesla will announce its third quarter earnings results for 2016 today after the close. Analysts are estimating earnings of $0.07 per share, a drastic increase from 2015’s third quarter loss of 53 cents. From a sales perspective, Wall Street’s consensus forecasts a 91% increase in revenue to $2.3 billion. It’s been a rough ride for Tesla shareholders this year, from flaming cars, to the electric car company’s acquisition of its cousin SolarCity. With all of these ups and downs the stock has held steady for the past year, basically flat. However, with the South African native Elon Musk, at the wheel, innovation is always in the headlights. The firm’s $5 billion GigaFactory for the in-house production of batteries is likely just a glimpse of what’s to come.
Tesla has a busy quarter ahead of them. They recently released a new update for their autopilot that will curb safety concerns. The SolarCity deal has continued to be a drag on the stock. The key driving growth factor for this company is a multitude of projects and continued growth. They are also meeting their increased output goals new car sales.
Alphabet (GOOG: $813)
Earnings Date: Thursday, 4:00PM ET
Consensus: 3Q2016
Revenues: $22.0B
EPS: $8.62
Year Ago Quarter Results
Revenues: $18.7B
EPS: $7.35
Key Things to Watch For in the Quarter
Analysts estimate that Google will report earnings of $8.62 per share, a 17% increase from 2015’s third quarter. Revenues are also expected to climb about 17% to $22 billion.
Alphabet continues to grow at an incredibly fast rate due to its hold over the online advertising industry. Their main source of revenue (search) continues to grow and be profitable for the company. Investors have reacted strongly to the last six of seven earnings events in the first trading session following its announcement, so watch out. Year-to-date, shares have strongly outperformed the Nasdaq by about 9 points (14% to 5% respectively). We love this company. Will they split again when it hits $900?
Blackstone (BX: $25)
Earnings Date: Thursday, 6:00 AM ET
Consensus: 3Q2016
Revenues: $1.55B
EPS: $0.65
Year Ago Quarter Results
Revenues: $1.2B
EPS: -$0.35
Key Things to Watch For in the Quarter
Analysts forecast fairly significant growth for Blackstone this quarter, with an estimated 29% increase in revenue to $1.55 billion and earnings of 65 cents per share compared to last year’s third quarter loss of 35 cents.
The stock is currently trading at the low end for the year, within $3 of its 52-week low of $22.30 (the high was $34). In 2015, the company raised a record $95 billion from long-term investors, displaying an inconsistency between the stock’s performance and long-term trust of investors. The stock is attractive to those seeking an alternative to this low interest rate environment, with a dividend yield of 7%. With projected growth of earnings, we may very well see the stock’s dividend increased over the coming quarters. We have continually stated that the stock is undervalued - 13 stock analysts who cover the stock have an average target of $32. We expect to be right in a big way later this year and next.
United Parcel Service (UPS: $108)
Earnings Date: Friday, 4:00PM ET
Consensus: 4Q2016
Revenues: $14.7B
EPS: $1.44
Year Ago Quarter Results
Revenues: $14.2B
EPS: $1.39
Key Things to Watch For in the Quarter
United Parcel Service will announce its third quarter earnings for 2016 after the closing bell on Friday. Wall Street analysts estimate moderate growth since the same quarter last year. Per share earnings are expected to increase 4% to $1.44. Revenue is also expected to grow 4% to an estimated $14.7 billion.
Increased investments in technology and productivity are paying off for UPS as it continues to be a bastion of growth in the eCommerce world. The company’s 2.9% dividend yield also makes UPS a great stock, as this added benefit of ownership provides investors an alternative to low yielding bond markets. Other strengths include good cash flow from operations and notable return on equity. Year-over-year, the stock is outperforming the overall market a bit, appreciating 5%. We see it to be undervalued.
