Visa (V: $83) reported a 28% rise in quarterly profit yesterday. Net income rose to $1.93 billion, or 79 cents per share in its fiscal fourth quarter ending September 30, from $1.51 billion, or 62 cents per share, a year earlier. Total operating revenue rose 19% to $4.26 billion.
The world's largest payments network operator had a great quarter. We expect even better things from Visa in the future.
Apple (AAPL: $117)
Earnings Date: Tuesday 4:10 PM ET
Consensus: Fiscal 4Q2016
Revenues: $46.9B
EPS: $1.65
Year Ago Quarter Results
Revenues: $51.5B
EPS: $1.96
Key Things to Watch For in the Quarter
Analysts throughout Wall Street forecast that Apple will earn $1.65 per share in the third quarter. This value represents a 16% decrease in comparison to last year’s third quarter. Revenues are also forecast to slip, by about 9% to $46.9 billion. So far this year the Silicon Valley technology goliath has underperformed revenue estimates in both of the previous quarters.
In addition to releasing their quarterly earnings report, this week Apple is expected to launch its newest MacBook Pro, a major event for the firm given the year-over-year decline in iPhone sales. This will benefit them in the interim between now and the release of the 10th anniversary iPhone next summer. Apple won’t let that magical date go without releasing something major. An increase of sales is expected.
Since the meltdown of Samsung’s Note 7, Apple shares have gained approximately $15 indicating that the market expects the Silicon Valley technology machine to regain some market share in the smartphone space from the Korean company.
Under Armour (UA: $38)
Earnings Date: Tuesday, 4:00 PM ET
Consensus: 3Q2016
Revenues: $1.45B
EPS: $0.25
Year Ago Quarter Results
Revenues: $1.2B
EPS: $0.23
Key Things to Watch For in the Quarter
Under Armour has made a lot of positive strides over the years. It has seen 25 consecutive quarters of uninterrupted growth. This quarter’s analysts’ consensus puts EPS flat while reaching $1.45 billion in revenue, representing a 20% climb from last year’s third quarter.
For the fourth quarter, consensus calls for earnings of 28 cents per share, up from 24 cents a year-ago. Revenue is expected to jump by 22% percent to $1.43 billion.
Under Armour is expected to report 2016 earnings per share of 59 cents on revenues of $4.95 billion. This represents an 11% increase in profits and a 25% increase in revenue.
With strong management, led CEO Kevin Plank, the sportswear company has continued to grow over the past two decades with much thanks to its increased brand visibility. This can be credited to its athlete endorsers including NBA MVP Stephen Curry, NFL MVP Cam Newton and MLB National League MVP Bryce Harper. Currently, the stock is undervalued. We will continue investing in a company that is filled with high growth and great potential. Although the firm has beat estimates in the past two quarters, the stock is down 20% year-over-year, making it an amazing value for growth investors. We hereby beat the drums for Under Armour.
Equity Residential (EQR: $61)
Earnings Date: Tuesday, 4:00 PM ET
Consensus: 3Q2016
Revenues: $602 M
EPS: $0.78
Year Ago Quarter Results
Revenues: $666 M
EPS: $0.80
Key Things to Watch For in the Quarter
Consensus for the third quarter of 2016 has Equity Residential’s earnings decreasing approximately 10% to $0.78. Revenue estimates are also expected to decline 10%, to $600 million. Of the past four quarters, Equity Residential has met EPS expectations of analysts twice, in 1Q16 and 4Q15. This residential Real Estate Investment Trust (REIT) with primary holdings in New York, Los Angeles and San Francisco, has long been benefiting from the high rental market. The company strategically avoided the threats of Hurricane Matthew by liquidating large holdings of apartments in Florida last quarter, giving the firm flexibility to diversify its portfolio with other emerging cities throughout the nation. The healthy 3.3% dividend also makes it an attractive play as investors struggle to find reasonable returns in today’s low interest rate environment. The stock is down 23% year-to-date giving us an opportunity to invest in one of the finest apartment owning company in the country.
CBRE Group (CBG: $28)
Earnings Date: Wednesday, 6:00 AM ET
Consensus: 3Q2016
Revenues: $3.3B
EPS: $0.50
Year Ago Quarter Results
Revenues: $2.7B
EPS: $0.51
Key Things to Watch For in the Quarter
The firm is a commercial real estate services and investment company that operates through its subsidiary divisions: The Americas; Europe, Middle East and Africa; Asia Pacific; Global Investment Management, and Development Services.
Revenue is strong this quarter as they continue to expand into other real estate markets. Last year’s quarter revenues were at $2.7 billion compared to the expected revenues of $3.3 billion this quarter.
CBRE is one of those under-the-radar companies. We find this amazing for a company worth $9 billion, but we have exposure to some of the things the company is doing and believe the stock to be very undervalued. The company has a wide range of tentacles in the US real estate market, all of which are designed to make money for their clients and produce revenue for CBRE itself. They also have strong international exposure. The company continues to grow and enhance their global geographic reach. Their stellar management and trajectory puts them on a path for continued growth.
October 25, 2016