As we enter a busy week of earnings reports, investors should prepare to analyze results from a diverse range of companies across various sectors. Here's a breakdown of notable earnings releases and key indicators to watch:
Monday, July 29th
Sprouts Farmers Market (SFM) - ★★★
Ranked #62 in Q3 2024 SMID Cap Equity Rankings
Earnings per share (EPS) estimate: $0.78
Key Things To Watch: Look for same-store sales growth and margins as indicators of the organic grocer's performance amid inflationary pressures.
Tuesday, July 30th
American Tower (AMT) - ★★★★
Ranked #44 in Q3 2024 Large Cap Equity Rankings
Earnings per share (EPS) estimate: $2.56
Key Things To Watch: Focus on tenancy rates and organic growth in key markets.
Pfizer (PFE) - ★★★★★
Ranked #2 in Q3 2024 Large Cap Equity Rankings
Earnings per share (EPS) estimate: $0.46
Key Things To Watch: Watch for updates on COVID-19 vaccine sales and pipeline developments.
Paypal (PYPL) - ★★
Ranked #86 in Q3 2024 Large Cap Equity Rankings
Earnings per share (EPS) estimate: $0.98
Key Things To Watch: Total payment volume, user growth, and revenue per user.
SoFi Technologies (SOFI) - ★★★
Ranked #46 in Q3 2024 SMID Cap Equity Rankings
Earnings per share (EPS) estimate: $0.24
Key Things To Watch: Total payment volume, user growth, and revenue per user.
Microsoft (MSFT) - ★★★★
Ranked #18 in Q3 2024 SMID Cap Equity Rankings
Earnings per share (EPS) estimate: $2.93
Key Things To Watch: Cloud revenue growth, particularly Azure, and AI integration progress will be crucial.
Electronic Arts (EA) - ★★★
Ranked #73 in Q3 2024 Large Cap Equity Rankings
Earnings per share (EPS) estimate: $0.42
Key Things To Watch: User engagement levels and live services revenue will be important.
Lemonade (LMND) - ★★★
Ranked #38 in Q3 2024 SMID Cap Equity Rankings
Earnings per share (EPS) estimate: $-0.88
Key Things To Watch: Customer acquisition costs and loss ratios are vital for these fintech companies.
LendingClub (LC) - ★★
Ranked #71 in Q3 2024 SMID Cap Equity Rankings
Earnings per share (EPS) estimate: $0.04
Key Things To Watch: Customer acquisition costs and loss ratios are vital for these fintech companies.
LiveNation (LYV) - ★★★
Ranked #32 in Q3 2024 SMID Cap Equity Rankings
Earnings per share (EPS) estimate: $1.06
Key Things To Watch: Ticket sales volume, Sponsorship and advertising revenue, concert attendance, Festival performance, Artist Management division growth, and earnings guidance.
Pinterest (PINS) - ★★★
Ranked #48 in Q3 2024 SMID Cap Equity Rankings
Earnings per share (EPS) estimate: $0.28
Key Things To Watch: Monthly active users and average revenue per user are key metrics.
Starbucks (SBUX) - ★★
Ranked #84 in Q3 2024 SMID Cap Equity Rankings
Earnings per share (EPS) estimate: $0.93
Key Things To Watch: Same-store sales growth, particularly in China, and loyalty program performance are important.
Wednesday, July 31st
Fiverr (FVRR) - ★★★
Ranked #47 in Q3 2024 SMID Cap Equity Rankings
Earnings per share (EPS) estimate: $0.55
Key Things To Watch: Spend per buyer and active buyer growth are crucial indicators.
KKR (KKR) - ★★★★
Ranked #12 in Q3 2024 SMID Cap Equity Rankings
Earnings per share (EPS) estimate: $1.06
Key Things To Watch: Assets under management and investment performance are key.
Vita Coco (COCO) - ★★★
Ranked #56 in Q3 2024 SMID Cap Equity Rankings
Earnings per share (EPS) estimate: $0.30
Key Things To Watch: Look for revenue growth and market share in the competitive beverage industry.
Wingstop (WING) - ★★★★★
Ranked #2 in Q3 2024 SMID Cap Equity Rankings
Earnings per share (EPS) estimate: $0.83
Key Things To Watch: Same-store sales growth and restaurant count expansion are important.
Meta Platforms (META) - ★★★★
Ranked #9 in Q3 2024 Large Cap Equity Rankings
Earnings per share (EPS) estimate: $4.70
Key Things To Watch: Ad revenue growth, user engagement across platforms, and progress in metaverse initiatives will be closely watched.
MGM Resorts International (MGM) - ★★★
Ranked #36 in Q3 2024 SMID Cap Equity Rankings
Earnings per share (EPS) estimate: $0.60
Key Things To Watch: Las Vegas and regional casino performance, as well as BetMGM's growth in online gaming.
Nerdwallet (NRDS) - ★★★
Ranked #44 in Q3 2024 SMID Cap Equity Rankings
Earnings per share (EPS) estimate: $-0.05
Key Things To Watch: User growth and monetization strategies will be in focus.
Thursday, August 1st
Intercontinental Exchange (ICE) - ★★★★
Ranked #32 in Q3 2024 Large Cap Equity Rankings
Earnings per share (EPS) estimate: $1.49
Key Things To Watch: Trading volumes and data services revenue growth are key.
Moderna (MRNA) - ★★★
Ranked #80 in Q3 2024 Large Cap Equity Rankings
Earnings per share (EPS) estimate: $-3.35
Key Things To Watch: Pipeline updates and COVID-19 vaccine sales projections will be important.
Shake Shack (SHAK) - ★★★★
Ranked #20 in Q3 2024 SMID Cap Equity Rankings
Earnings per share (EPS) estimate: $0.27
Key Things To Watch: Same-store sales growth and restaurant-level operating margins are crucial.
Apple (AAPL) - ★★★
Ranked #68 in Q3 2024 Large Cap Equity Rankings
Earnings per share (EPS) estimate: $1.34
Key Things To Watch: iPhone sales, services revenue growth, and any hints about new product launches.
Amazon (AMZN) - ★★★★★
Ranked #3 in Q3 2024 Large Cap Equity Rankings
Earnings per share (EPS) estimate: $1.03
Key Things To Watch: AWS growth, e-commerce sales, and progress in AI initiatives will be closely monitored
Block (SQ) - ★★★★
Ranked #23 in Q3 2024 Large Cap Equity Rankings
Earnings per share (EPS) estimate: $0.84
Key Things To Watch: Gross payment volume for Square and user growth for Cash App are key metrics.
Cloudflare (NET) - ★★★★
Ranked #14 in Q3 2024 Large Cap Equity Rankings
Earnings per share (EPS) estimate: $0.14
Key Things To Watch: Customer growth and average revenue per customer will be important.
Roku (ROKU) - ★★★★
Ranked #29 in Q3 2024 SMID Equity Rankings
Earnings per share (EPS) estimate: $-0.42
Key Things To Watch: Customer growth and average revenue per customer will be important.
DoorDash (DASH) - ★★★
Ranked #62 in Q3 2024 Large Cap Equity Rankings
Earnings per share (EPS) estimate: $-0.09
Key Things To Watch: Gross order value and user retention rates are crucial indicators.
DraftKings (DKNG) - ★★★★
Ranked #28 in Q3 2024 SMID Equity Rankings
Earnings per share (EPS) estimate: $-0.01
Key Things To Watch: Monthly unique payers and average revenue per user in sports betting and iGaming.
Snap (SNAP) - ★★★★★
Ranked #1 in Q3 2024 SMID Equity Rankings
Earnings per share (EPS) estimate: $-0.16
Key Things To Watch: Daily active users and average revenue per user will be closely watched.
Tanger (SKT) - ★★★
Ranked #41 in Q3 2024 Large Cap Equity Rankings
Earnings per share (EPS) estimate: $0.52
Key Things To Watch: Occupancy rates and same-center net operating income growth are key for this REIT.
Friday, August 2nd
Chevron (CVX) - ★★★★
Ranked #38 in Q3 2024 Large Cap Equity Rankings
Earnings per share (EPS) estimate: $2.93
Key Things To Watch: Production volumes, refining margins, and progress on renewable energy initiatives.
Cinemark (CNK) - ★★★
Ranked #68 in Q3 2024 SMID Cap Equity Rankings
Earnings per share (EPS) estimate: $0.10
Key Things To Watch: Box office performance, concession revenue per patron, and theater occupancy rates.
Investors should pay close attention to companies' guidance for the rest of the year, as well as management comments on macroeconomic factors such as inflation, interest rates, and consumer spending trends. Additionally, any updates on AI integration, cost-cutting measures, and strategic initiatives will be important to assess each company's future prospects.
Remember that while earnings reports provide valuable insights, they should be considered as part of a broader investment strategy and not used as the sole basis for investment decisions.
A Look Back
Verizon Stock Plunges 6% Following Q2 Earnings Report
Verizon - ★★★★
Ranked #47 in Q3 2024 Large Cap Equity Rankings
Verizon Communications (VZ) saw its stock price drop 6% on Monday following the release of its second-quarter earnings report. Despite posting a boost in quarterly revenue, investors reacted negatively to the details of the company's subscriber growth and customer losses in certain segments.
The telecommunications giant reported a net gain of 148,000 postpaid phone connections, which typically represents the most valuable and reliable customer base for wireless carriers. While any growth in this segment is generally viewed positively by investors, the modest increase failed to impress the market.
A key factor contributing to the stock's decline was Verizon's significant loss in prepaid wireless customers. This drop came in the wake of an expired public assistance program, highlighting the company's vulnerability to changes in government initiatives that affect consumer spending on wireless services.
The market's reaction underscores the challenges faced by major telecom providers in a highly competitive landscape. Investors are closely scrutinizing subscriber metrics, looking for signs of sustainable growth and resilience in various customer segments.
Verizon's mixed results reflect the broader industry trends, where traditional wireless carriers are grappling with market saturation, intense competition from smaller players, and the need to invest heavily in 5G infrastructure.
Spotify Surge 12% On Earnings Beat And Premium Tier Plans
Spotify (SPOT) - ★★★★
Ranked #17 in our Q3 2024 Large Cap Equity Rankings
Spotify Technology SA (SPOT) saw its stock price jump 12% to above $332 in early trading on Tuesday, following the release of its second-quarter earnings report and news of potential new premium offerings. The surge contributes to an impressive 74% year-to-date gain for the audio streaming giant.
The company's strong performance was buoyed by its recent price hike on premium streaming plans, which went into effect earlier this month. This strategic move helped Spotify post its second consecutive quarterly profit, a key milestone as the company aims for more consistent profitability.
The announcement of the potential new tier, combined with the company's improving financial performance, has sparked renewed investor interest. Our analysis on the company has use 12-month price target of $340 for Spotify stock.
As Spotify continues to evolve its business model and explore new revenue opportunities, the market will be watching closely to see if the company can maintain its momentum and deliver on its profitability goals. The potential launch of a high-fidelity tier could open up new growth avenues and further solidify Spotify's position as a leader in the competitive audio streaming landscape.
Coursera Surges 56%: Stock Soars and Options Explode with 600% Gains
Coursera (COUR) - ★★★★
Ranked #31 in Q3 2024 SMID Rankings
Coursera (COUR) shares soared an impressive 56% during intraday trading on Friday, following the company's release of its second-quarter results that significantly surpassed analysts' expectations.
On Thursday, Coursera reported non-GAAP earnings of $0.09 per diluted share for Q2, a substantial improvement from breakeven results in the same period last year. This performance far exceeded the $0.02 per share consensus estimate. The company's revenue for the quarter ended June 30 reached $170.3 million, up from $153.7 million in the previous year.
This stellar performance validates our bullish outlook on Coursera, which we communicated to our subscribers on July 8th when the stock was trading at $7.20. At that time, we assigned Coursera a four-star rating with a positive intermediate-term outlook and set a price target of $11 over the next year, representing a 52% upside potential.
The market's reaction to Coursera's Q2 results has propelled the stock well beyond our initial expectations. Investors who acted on our recommendation have seen their positions appreciate significantly in a short period.
Options traders who took bullish positions have also reaped substantial rewards. For instance, the November 15, 2024 $10.00 strike price call option, which was trading at $0.30 ($30) per contract at the time of our note earlier this month, has now surged to $2.10 ($210) per contract. This represents an extraordinary gain of over 600% in just a few weeks.
This dramatic price movement underscores the potential for significant returns when thorough analysis aligns with strong company performance. It also highlights the importance of staying informed about promising investment opportunities in the dynamic education technology sector.
As always, investors should consider their risk tolerance and conduct their own due diligence before making investment decisions. While Coursera's recent performance is impressive, it's crucial to monitor the company's future results and market conditions for sustained growth.
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The information provided in this report is for general informational purposes only and does not constitute investment advice or a recommendation to buy or sell any securities. The opinions expressed in the report are our own and are subject to change without notice. We may have a position in the securities mentioned in the report, and we may buy or sell such securities without notice. Any investment decisions made based on the information in this report are solely the responsibility of the recipient. We do not accept any liability for any direct, indirect, or consequential loss arising from any use of this report or its contents.
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