Netflix (NFLX: $100)
Earnings Date: Today 4:00 PM ET
Consensus: 3Q16
Revenues: $2.3B
EPS: $0.06
Year Ago Quarter Results
Revenues: $1.74B
EPS: $0.07
Key Things to Watch For in the Quarter
Netflix has a forecasted range of earnings per share at $0.06 this quarter and revenue of $2.3 billion for the 3rd quarter of the 2016 fiscal year. Last quarter it beat a consensus of $0.02 with earnings per share at $0.09. Last quarter hit $2.11 billion compared to estimations at that exact mark. The estimates for this quarter are lower than the previous quarter, but would exceed last year’s third quarter if estimates are met.
BMR Take: Netflix is the leading Internet television network boosting over 75 million subscribers all around the world. Subscribers collectively spend hundreds of millions of hours watching Netflix every day. There is a paradigm shift in terms of online television, with companies like Amazon, Google, and Apple all shifting services in that direction.
Netflix was one of the original providers for pushing forward this new way of watching media and that is what puts them on track to continuing to grow and flourish. At the low price of $10 a month, we see millions more customers adding to the worth of the company and stock.
Goldman Sachs (GS: $169)
Earnings Date: Tomorrow, 2016 6:00 AM ET
Consensus: 3Q2016
Revenues: $7.42B
EPS: $3.86
Year Ago Quarter Results
Revenues: $6.86B
EPS: $2.90
Key Things to Watch For in the Quarter
In the third-quarter at this New York based Financial behemoth, the anticipation is for a huge increase of earnings per share at $3.86. The general consensus is much larger than last year’s EPS in the third quarter at $2.90. revenues for this quarter are also up, at $7.4 billion – 8% higher than it was last year. Numbers have improved lately as the company’s profits shot up to $1.8 billion last quarter.
Goldman is also innovating by bringing back an old service. The company is bringing back a segment called Marcus, which would re-launch its old retail banking loans. The company hasn’t done something like this for 100 years. They’ll loan out up to $30,000 to the general public at interest rates between 6 – 23% and between two to six years. (We’ll take 23% any day!)
BMR Take: Goldman Sachs is a mainstay on Wall Street. Most financial services and banks are usually priced at a market discount to benchmarks such as the S&P 500 and Goldman is no exception. It is a great value and offers an above average dividend yield.
PayPal (PYPL: $39)
Earnings Date: October 20, 2016 4:00 PM ET
Consensus: 3Q2016
Revenues: $2.65B
EPS: $0.35
Year Ago Quarter Results
Revenues: $2.3B
EPS: $0.31
Key Things to Watch For in the Quarter
The consensus for this quarter is earnings per share of $0.35. Last year PayPal managed to beat out analysts’ expectations and come in with an EPS of $0.31. So far revenues are exceeding that of last year as PayPal continues to grow and push forward.
BMR Take: PayPal is another one of those companies that started on a huge technological trend and then became the leader in its respective market. The mobile and digital banking system is one that PayPal dominates. Not many consumers know this, but PayPal owns Venmo, a popular alternative to PayPal used with the younger generation. Its core being is that of a financial service and can continue to grow as the mobile market becomes more ubiquitous.
Microsoft (MSFT: $57)
Earnings Date: October 20, 2016 4:00 PM ET
Consensus: 1Q2017
Revenues: $21.7B
EPS: $0.68
Year Ago Quarter Results
Revenues: $21.0B
EPS: $0.59
Key Things to Watch For in the Quarter
Microsoft has managed to beat quarterly earnings per share estimates in 10 of the last 12 quarters. For example last quarter, consensus expectations were $0.58 and they surpassed it with $0.69. This quarter should also be ahead of last year’s quarter with projected revenue that is greater than it was a year ago.
BMR Take: Microsoft continues to grow and exceed expectations. The priority lately has been to continue selling copies of Windows 10 and get at least 1 billion sold by 2018. The focus is also to shift commercial cloud revenues up to $20 billion as well. A powerful company that just gets better with age.