Here’s your weekly Investing Action Plan: what you need to know as an investor for the coming week.
Earnings season grinds along with results due out from Tesla (TSLA), Nvidia (NVDA), Grubhub (GRUB), Disney (DIS) and Match Group (MTCH). More social media companies, restaurants, cybersecurity firms and chip-sector companies will report as well. Meanwhile, the private-sector space industry is poised to take a major leap forward with the launch of SpaceX’s latest rocket.
The maker of electric cars is set to report Q4 results after the market close Wednesday, and the consensus is for per-share losses to widen to $3.18 from 69 cents a year ago, with revenue up 45% to $3.3 billion. The report comes at a highly important time, namely the production ramp of its Model 3. Tesla has a target to produce 2,500 Model 3 sedans per week sometime in the Q1 and 5,000 per week in Q2 after getting off to a slow start last year. Analysts will be looking for any manufacturing bottlenecks, as Tesla has a pattern of product delays.
The graphics-chip maker is scheduled to report Q4 results after the market close Thursday. Analysts expect EPS of $1.16, up 17%, on sales of $2.66 billion, up 22%. If it hits those numbers, it would be the company’s fourth straight quarter of decelerating earnings growth and second quarter in a row of slowing sales growth. Investors will want to hear about the health of its business selling processors for data centers, gaming PCs and consoles, and cryptocurrency mining.
The leading provider of online food ordering and delivery services reports Q4 results before the market open Thursday, as shares trade near record highs. The consensus estimate is for EPS to climb 30% to 30 cents as revenue surges 46% to $201 million, in what would mark its fastest growth in 10 quarters. Analysts at Oppenheimer last month raised their price target on Grubhub to 80 from 66, based on a “favorable setup heading into 2018.” Earlier, Morgan Stanley said Grubhub is the “clearest winner” from tax cuts among internet stocks it covers.
The media and entertainment giant reports Q1 results late Tuesday, and analysts see EPS rising 4.5% to $1.62 as revenue grows 3% to $15.24 billion. Investors will look for updates on Disney’s integration of its recently acquired 21st Century Fox (FOXA) entertainment assets, the performance of “Star Wars: The Last Jedi” and its upcoming ESPN Plus and standalone Disney streaming platforms. Fox discloses earnings Wednesday. Viacom’s (VIAB) and Lionsgates‘ (LGFA) earnings calls on Thursday will surely include questions about potential M&A activity.
Falcon Heavy’s Maiden Flight
SpaceX is targeting Tuesday for the first launch of its Falcon Heavy, the most powerful rocket since the Apollo program’s Saturn V. The payload will be founder Elon Musk’s Tesla Roadster. A successful test flight will help the privately held company provide launch services for bigger payloads. Meanwhile, the CEOs of Boeing (BA) and Northrop Grumman (NOC) will speak at the Cowen Defense Conference Wednesday and Raytheon’s (RTN) CEO and CFO will speak Thursday. The Singapore Airshow also runs Tuesday through Sunday.
Tinder Parent, IAC
Match Group reports Q4 earnings after the market close Tuesday, with an earnings call early the next day. With short interest high, the stock could make a big move with a beat or miss. The stock jumped 10% on Q3 results. The online dating services provider is expected to report a 10% EPS gain to 32 cents, with revenue rising 13% to $362 million. While mobile app Tinder is a big growth driver, older dating websites are being revamped.
Match-parent IAC/Interactive (IAC) reports Q4 earnings late Wednesday. IAC’s EPS is expected to fall by a third to $1.18, accounting for the spin-off of HomeAdvisor into Angi Homeservices (ANGI), and revenue is expected to rise 10% to $891.5 million. IAC also owns video streamer Vimeo. IAC trades with “a significant negative core stub value,” says Barclays, as investors focus on Match and Angi ownership.
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The coming week will bring earnings reports from a host of chipmakers and chip-gear vendors. ON Semiconductor (ON) will kick off the week before the market opens on Monday. Analysts expect ON Semi to earn 37 cents a share, up 16%, on sales of $1.35 billion, up 7%. Apple (AAPL) iPhone chip suppliers Cirrus Logic (CRUS) and Skyworks Solutions (SWKS) report after the close Monday. Microchip Technology (MCHP) reports fiscal third-quarter results after the market close Tuesday. Microchip is expected to earn $1.35, up 29%, on sales of $992 million, up 19%. Macom Technology Solutions (MTSI) also reports quarterly results Tuesday. Coherent (COHR) is set to release fiscal Q1 results on Wednesday after the close. Coherent is seen earning $3.54 a share, up 58%, on sales of $476 million, up 38%. Ichor (ICHR) also reports Wednesday and is expected to earn 69 cents a share, up 41%, on sales of $183 million, up 40%. Diodes (DIOD) and Inphi (IPHI) also are reporting on Wednesday.
Take-Two Interactive Software (TTWO), the maker of “Grand Theft Auto” and “NBA 2K” games, will deliver December-quarter results after the close Wednesday. Analysts expect EPS of $1, up 16%, on sales of $673 million, up 41%. Activision Blizzard‘s (ATVI) results are due Thursday. It’s expected to earn 92 cents a share, same as a year earlier, on sales of $2.61 billion, up 6%. Activision is seen getting a lift from hit title “Call of Duty: WWII.”
Rio Tinto (RIO), among a trio of companies that dominate the iron ore market along with BHP Billiton (BHP) and Vale (VALE), reports second-half earnings before the open on Wednesday. Rio already announced Q4 shipments, while reiterating 2018 guidance on Jan. 16. Analysts see China demand as a primary wild card for iron ore prices this year. Rio is expected to report a full-year profit of $4.81 a share, along with a full-year dividend of $2.85.
Twitter (TWTR) and Snapchat-owner Snap (SNAP) are set to report Q4 results during a challenging period for both companies. The consensus on Twitter, which reports before the market open Thursday, is EPS of 14 cents, up 27%, on revenue of $690 million, down 4%, marking the fourth quarter in a row of yearly declines. The results come amid concerns about Twitter’s turnaround effort after the announced departure of COO Anthony Noto.
The consensus on Snap is for per-share losses to widen to 16 cents from 15 cents a year ago, as revenue jumps 54% to $256 million. It will report results after the market close Tuesday. Analysts will be looking for any changes in underlying business trends as Snap is going through a major transition on its app redesign and business overhaul.
The sector continues to underperform the broader software space on worries that customers are re-assessing spending priorities amid a shift to cloud computing. Fortinet (FTNT) reports Q4 earnings late Monday. Analysts estimate that EPS will dip 3% to 29 cents, with revenue rising 12.7% to $409 million. Proofpoint (PFPT) reports late Tuesday. Analysts estimate 11% EPS growth to 20 cents, with revenue jumping 30% to $139.5 million. FireEye (FEYE) reports Q4 earnings late Thursday. Analysts expect per-share losses to narrow to 1 cents from 3 cents a year earlier, with revenue rising nearly 5% to $193.6 million.
Yum Brands (YUM), Chipotle Mexican Grill (CMG) and Dunkin’ Brands (DNKN) are set to report fourth-quarter earnings this week. The results come as Chipotle recovers from food-safety scares but has stumbled with new menu items. Dunkin’ faces coffee competition from McDonald’s (MCD), and Yum faces worries from some analysts of weaker sales at Taco Bell.
Analysts see Chipotle, which reports Tuesday, putting up a 144% EPS gain to $1.34, as revenue increases 8% to $1.122 billion. Dunkin’ also reports Tuesday, and EPS is seen slipping 2% to 63 cents, with revenue up 3% to $223 million. Yum, which reports Thursday, is forecast to increase EPS by 1% to 80 cents, with revenue falling 21% to $1.608 billion.
Michael Kors (KORS) reports early Wednesday and EPS is expected to sink 21% to $1.29 on 1.6% sales growth to $1.38 billion. Despite the strong holiday sales season, Morgan Stanley remains cautious on the handbag market for now.
Cognizant Technology Solutions (CTSH) reports Q4 earnings early Wednesday. Analysts estimate that the IT services provider’s EPS will grow 11% to 97 cents, with revenue also rising 10% to $3.82 billion.
Anadarko Petroleum (APC) reports late Tuesday and is seen swinging to a profit of a penny per share from a loss of 50 cents per share in the year-ago quarter. Revenue is expected to rise 14% to $2.72 billion.
Pioneer Natural Resources (PXD) reports late Tuesday, and analysts expect a 57% EPS jump to 77 cents and a 47% increase in revenue to $1.72 billion.
Gilead Sciences (GILD) is expected early Tuesday to report a 37% EPS decline to $1.70 per share as revenue drops 21% to $5.78 billion. Early Thursday, Regeneron (REGN) and Alexion (ALXN) are slated to report.
Bristol-Myers Squibb (BMY) reports early Monday and is seen earning 67 cents per share on $5.31 billion in sales, up 6.3% and 1.3%, respectively.
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