SBUX is expected to report Q2 earnings tonight after the close. This will be the last call for CEO Howard Shultz (The company typically provides guidance in the press release).
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SBUX is expected to report Q2 earnings tonight after the close. This will be the last call for CEO Howard Shultz (The company typically provides guidance in the press release).
Chipotle (CMG) is set to report Q1 earnings after the close today (last quarter the co reported at 16:05). The co will host a conference call to discuss later at 16:30.
J.P. Morgan is set to report Q1 earnings tomorrow before the market opens with a conference call to follow at 8:30am ET.
Lululemon athletica (LULU) is set to report Q4 results tonight after the close with a conference call to follow at 4:30pm ET. LULU reported Q3 results at 4:05pm. Current Capital IQ consensus stands at EPS of $1.01 on Revenue of $783.3 mln.
Q2 Capital IQ consensus calls for EPS of $0.86 (versus ($0.05) last year) on revenue of $4.651 bln (+58.5% YoY).
DRAM and Margins
Options Activity
Based on MU options, the current implied volatility stands at ~ 46%, which is 64% higher than historical volatility (over the past 30 days).The options market is currently pricing in a move of ~7% in either direction by weekly expiration (Friday).
Options activity has been aggressively bullish in the last few weeks with multiple strikes and calls bought.
Technicals:
MU shares have outperformed the S&P so far this year with MU raising by 19% vs 5% gain in the index. Resistance sits near the $26.50-26.75 area, while support hangs near $25.75-26.00.
GameStop (GME) is set to report Q4 results after the bell (5:00pm ET). Cap IQ Consensus estimates Q4 EPS of $2.29 (vs. $2.40 in 4Q16), revs of $3.06 bln (-12.6% y/y), with comps declining 16.9%.
NVIDIA (NVDA) is set to report Q4 results tonight after the close with a conference call to follow at 5pm ET. NVDA is expected to report results at 4:20pm ET.Current Capital IQ consensus stands at EPS of $0.98 on Revenue of $2.10 bln.
Walt Disney Fiscal First Quarter Earnings Report (Tuesday, February 7, after the close)
CMG is expected to report Q4 earnings tonight after the close. There is a conference call scheduled for 16:30 PM.
There is little concern that FB will miss estimates this evening. FB is expected to provide an outlook for its Expense Guidance which is expected to come in well above the 2016 outlook of 40-45%.
No stock is as anticipated, nor will be scrutinized more closely, than the results from Apple, which will report after Tuesday's close
Oil and gas major-giant Exxon Mobil is scheduled to release its Q4 earnings results tomorrow Jan 31 pre-market with a conference call to follow at 9:30 am ET the same day.
Under Armour (UAA, UA) is set to report Q4 results tomorrow before the market opens with a conference call to follow at 8:30am ET. UAA is expected to report results at 7:15am. Last quarter the co provided its Q3 results at 7am and then provided prepared conference call remarks on its website shortly after the earnings release. Current Capital IQ consensus stands at EPS of $0.25 on revenues of $1.409 bln.
Guidance
Key Issues
Coach (COH) is set to report Q2 results tomorrow before the open with a conference call to follow at 8:30 AM ET. Co reported last quarter's results at 6:45 AM ET. Current Q2 Capital IQ consensus stands at EPS of $0.74 (vs. $0.68 last year) on revs up 2% to $1.32 bln.
WDC is expected to report second quarter earnings tonight after the close. There is a conference call scheduled for 17:00 (the company typically guides on the conference call).
IBM (IBM) will report Q4 results tonight after the bell with a conference call scheduled to start at 5:00 p.m. ET. Usually, IBM reports within the first 10 minutes after the bell.
NFLX had an aggressive International build in 2016. It also increased investment in its original content after so many of its shows (House of Cards, Orange is the New Black, Narcos, Stranger Things, etc) performed so well. The investments were complimented by a price increase that was 75% complete at the end of Q3.
Subs will remain topic of focus but investors want to see the company deliver. Especially with Forward P/E at a 145x 2017 earnings. The cash burn in Q3 was $506 mln and NFLX said it expected Q4 to come in at a similar level.
Domestic Streaming
International Streaming
Einhorn really put a damper on this stock yesterday as it confirmed an all time high breakout. It seems everyone from Carl Icahn to Einhorn want to take a shot at calling a top in this stock. "Valuation" is the obvious key concern for these guys, but it's all relative to how you value the stock. Take Amazon for example, it has been shot against on valuation for years now. That short selling and top calling has done nothing more than fuel Bezos' land buying spree.
NFLX has started to break out of a two year range and has cleared enough room for further upside. I want to play to capture that upside.
Excerpts from Shareholders Letter:
Gigamon dives -18% on guidance; trading down near $38 after-hours. Next major area of support near June's breakout. This could be a foreshadow for darling stock NVDA IF they ever miss/soften their guidance.
The market will be paying close attention to several reports from the banking industry on Friday morning. The two "most important" being Bank of America and JP Morgan.
Shares of GOOGL hit an all time high of $838.50 on Monday but we have seen some profit taking ahead of tonight's report as the stock has pulled back to $820. The company is coming of an impressive Q2 in which it was able to accelerate revenue growth to over 20% for the first time in three years.
The growth was driven by Google website revenues as strength in the mobile and YouTube segments provided a boost. The rise in mobile has also boosted the growth in partners and website TAC which will be an area to watch.
The all time high will certainly be in play, especially when one views the Forward P/E of 20.5x being reasonable for a co that is posting 20%+ revenue increases despite being a $20+ bln a quarter company, no easy feat. A miss by GOOGL should prove interesting with the $783.50 Post-Q2 results being a key level of support. A break of this will send the shares to the $760 with the 200-sm ($757.29) in play.
Key Metrics
Q2 Recap
GOOGL reported Q2 (Jun) earnings of $8.42 per share, $0.38 better than the Capital IQ Consensus of $8.04. Revenues rose 21.3% year/year to $21.5 bln vs the $20.77 bln Capital IQ Consensus.
GOOGL/GOOG beats by $0.46, beats on revs