Tesla (TSLA: $224)
Earnings Date: August 3, 2016 4:30 PM ET
Consensus: 2Q16
Revenues: $1.67 Billion
EPS: $ -0.51
Year Ago Quarter Results
Revenues: $950 Million
EPS: $-0.48
Key Things to Watch For in the Quarter
The revenue prediction is around $1.67 billion, a 36% increase from last quarter. EPS predictions stand at a loss of $0.51, slightly bigger than last year’s second quarter loss of $0.48.
BMR Take:
This upcoming earnings is coming at a time that’s critical for the company. It’s about a year before Tesla brings its low cost Model 3 into the market. The release of this car is important for the company’s future as they continue to ramp up efforts to hit 500,000 units per year by 2018. Analysts now believe that most Model X production issues have been resolved. We'll see, won't we.
Tesla just finalized the deal with Solar City and as Elon Musk believers, we are going along for the ride with him as we have faith in his vision for a completely integrated alternative energy company in transportation, and electricity for the home and business from the sun and batteries.
First Solar (FSLR: $47)
Earnings Date: August 3, 2016 4:30 PM ET
Consensus: 2Q16
Revenues: $860 Million
EPS:Â $0.55
Year Ago Quarter Results
Revenues: $900 Million
EPS: $0.93
Key Things to Watch For in the Quarter
First Solar’s revenue is expected to fall 3% YoY, but is 3% higher than the first quarter of 2016. According to company reports, they are expecting to gain most of their revenue through utility scale projects across North America. First Solar has beaten EPS forecasts in seven quarters of the last three fiscal years. Last quarter the company reported EPS of $1.66 compared to the consensus of $0.93.
BMR Take:
First Solar is a great value play and if it keeps beating EPS forecasts, it will reward investors greatly. First Solar is an impressive renewable energy company as it has an adept ability to adapt. [How is that for alliteration!]
First Solar has invested in increasing solar panel efficiencies. Going forward, what makes this company more valuable is the large-scale projects on the timeline. One of these projects is a system designed to include energy storage, putting the company way ahead of competitors.
Aetna (AET: $116)
Earnings Date: August 2, 2016 4:30 PM ET
Consensus: 2Q16
Revenues: $15.7 Billion
EPS:Â $2.12
Year Ago Quarter Results
Revenues: $15.1 Billion
EPS: $2.08
Key Things to Watch For in the Quarter
Aetna has managed to beat nine EPS quarterly forecasts in the past three fiscal years, with a positive average surprise of 75% to boot. Â
BMR Take:
The US Government is trying to block the merger with Humana. We have said for a long time that if it goes through, it’s good. But if not, the company is powerful and profitable on its own.
AmerisourceBergen Corporation (ABC: $90, up $4 today)
Earnings Date: This morning
Consensus: 3Q16
Revenues: $36.6 Billion
EPS:Â $1.27
Year Ago Quarter Results
Revenues: $34.0 Billion
EPS: $1.20
Key Things to Watch For in the Quarter
We missed the earnings release this morning. Sorry about that. The company released its 3Q16 results before the market opened that topped analysts' estimates. They reported earnings of $1.37 per share, up 14% from the 3Q15. Consensus had $1.27 per share.
Revenue rose 8% year-over-year to $37 billion, higher than consensus of $36.7 billion. The revenue increase reflects an 8% rise in the company's pharmaceutical distribution revenue.
The market liked the fact that the company is projecting revenue growth of 8% and operating income growth of 5% to 6%.AmerisourceBergen’s has beaten estimates three out of the last four quarter and it was no exception today.
BMR Take:
Everything is working well at the company and they continue to have a lot of potential. The company just extended its distribution agreement with Walgreens Boot Alliance for an additional 10 years. Market growth is being led by new brand products and boosting its pharmaceutical segment. We believe you can buy this one and put it away for a few years and be quite pleased with the results.
Devon Energy (DVN: $35)
Earnings Date: August 2, 2016 4:30 PM ET
Consensus: 2Q16
Revenues: $2.3 Billion
EPS:Â $-0.22
Year Ago Quarter Results
Revenues: $3.7 Billion
EPS: $0.78
Key Things to Watch For in the Quarter
Devon Energy is expected to beat earnings estimates this quarter. Last quarter this energy company boosted a positive earnings surprise of 11.7%. Devon Energy reported lower EPS last year in Q2 due to lowered realized crude oil and natural gas prices. If current oil prices are any indication, then there’s a possibility of the EPS remaining negative and the company falling in line with analyst consensus.
BMR Take:
The energy sector is at a point where no one knows when the industry is going to turn up or dry out. Devon Energy is one of our reports special opportunities that’s on an uptrend again. The stock has increased by 124% alone since February of 2016.
Well, yesterday it happened. The stock got hammered, closing down 6% and it is down another 50 cents today. If the stock breaches the $35 level, we sadly will have to exit the stock. Having added it at $19 in February, we will happily book this 84% gain.
Upcoming Earnings Next Week
Silver Wheaton Corp 8/10/2016
Home Depot 08/16/2016
Brookdale Senior Living 08/08/2016