Tesoro (TSO: $84)
Target Price: $110
Sell Price: $75
Earnings Date: Monday, 8:30 AM ET
Consensus: 4Q16
Revenues: $7B
EPS: -$0.14
Year Ago Quarter Results
Revenues: $6.3B
EPS: $1.83
Key Things to Watch for in the Quarter
Analysts see a revenue increase of 11% to $7 billion and earnings turning to a deficit of $0.14. The first three earnings reports of 2016 provided investors a little unease as Tesoro beat estimates in Q1, underperformed estimates in Q2, and met estimates in Q3. The stock received a better reaction in Q3 (+5% in the weeks following the report) than in Q1 and Q2, which each generated an approximate 2% gain in the weeks following the report. Shares are up nearly 15% over the past year, and with a relatively low PE of 14, we look forward to Tesoro’s climb to our $110 target.
Twilio (TWLO: $32)
Target Price: $72
Sell Price: $29
Earnings Date: Tuesday, Exact Time N/A
Consensus: 4Q16
Revenues: $74M
EPS: -$0.05
Year Ago Quarter Results
Revenues: Not public then
EPS: N/A
Key Things to Watch for in the Quarter
Analysts see revenue of $74 million for the recently concluded fourth quarter in this week's report, 44% ahead of what it rang up during the prior year's holiday quarter before they were public. Twilio's own guidance three months ago was calling for a 41% to 45% top-line ascent. Wall Street pros see a deficit of $0.06 a share for the quarter, but Twilio has managed to post a smaller loss than analysts were targeting in each of its two first quarterly reports as a public company. The past year has been a roller coaster ride for the stock, but with its consistent ability to decrease losses we remain confident that we will see a strong quarter.
Gilead Sciences (GILD: $72)
Target price: $80
Sell price: $60
Earnings Date: Tuesday, 4:30 PM ET
Consensus: 4Q16
Revenues: $7.0B
EPS: $2.61
Year Ago Quarter Results
Revenues: $8.5B
EPS: $3.32
Key Things to Watch for in the Quarter
Wall Street analysts expect Gilead Sciences to report a decrease in earnings per share of 21% to $2.61 and a 6% revenue increase to $7.0 billion for 4Q16. Shares have fallen 15% over the past year in part due to the firm’s earnings performance compared to estimates. Gilead missed estimates in Q1 and Q3, but beat estimates in Q2 by 2%. Q3 saw strong performance from HIV and other antiviral products. The stock is trading extremely cheaply at 7 times earnings, when compared to the 60 PE of the Pharmaceutical Drug industry.
CBRE (CBG: $31)
Target price: $35
Sell price: We would not sell CBRE
Earnings Date: Friday, 8:30 AM ET
Consensus: 4Q16
Revenues: $4.0B
EPS: $0.80
Year Ago Quarter Results
Revenues: $3.7B
EPS: $0.81
Key Things to Watch for in the Quarter
Analysts estimate that CBRE will report a revenue increase of 8% to $4.0 billion and a 1% decrease in earnings per share to $0.80. CBRE beat analyst’s earnings estimates in 1Q16 and 2Q16 by a penny, but met estimates in 3Q16. Investors reacted fairly harshly to the first two quarterly reports this year with the stock falling 5% in the week following the reports. However, the stock did climb nearly 5% following the third quarter earnings release. CBRE is up 35% over the past year, and currently trades at a 21 PE. We are very happy with CBRE’s performance over the past year and look forward to seeing CBRE hitting our $35 target.