Tag Archives: EPS

by | August 19, 2019 · 7:33 pm

Home Depot is a quality stock and beats earnings time after time

Home Depot is expected to report earnings on Tuesday 20, before market open, and the report will be for the fiscal Quarter ending in July this year. The consensus EPS for the quarter is $3,08 and that`s a little bit higher than last year at the same at $3,05. The consensus revenue estimate is $31,01 Billion and that`s up 1,8 percent YoY.

This is a high quality stock and the rise from the financial crisis has been massiv. Home Depot has beaten EPS estimates 100 percent of the time over the last two years. Revenue estimates is beaten 75 percent of the time.

This is the holiday quarter for Home Depot. A different retailer than others that are struggling with e-commerce and malls. Do we see any recession here? Not at all. The consumers spend money at Home Depot and they can afford to do it because they have jobs and money. That puts the company in the same folder as Walmart.

Home Depot scheduled a conference call at 9 a.m Eastern time on Tuesday 20, 2019.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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by | August 6, 2018 · 9:21 pm

Snap`s self-serve ads is finally ready to launch, but the drawback here is sliding ad inventory prices

Snap Inc is set to report second-quarter earnings after the market closes on Tuesday August 7. Historically, the company makes big moves in the wake of its quarterly reports. The average single-day price swing is about 24 percent regardless of direction.

Both Facebook and Twitter faces a challenging time. So do Snap Inc. GDPR pushed Facebook`s user counts down compared with the first quarter and that will also impact Snap Inc. Snap is a small company compared to Facebook, and they will not deal with the same level of scrutiny from lawmakers as Facebook.

EPS in March 2017 came in at -$2,31, but have since then been far better with -$,030 a year later. Analysts on average project Snap second-quarter revenue of $250,4 million, up from $182 million in the same quarter last year.

Facebook have the same tools as Snap and that is hurting their profit. Their biggest competitor is also Instagram which makes it difficult for them to be unique. But Snap launched the second version of its Spectacles product, sunglasses that let people take photos and video and use them within the Snapchat app.

This is also the only move that live up to its claims in the SEC filings that Snap Inc is a camera company.

Snap`s self-serve ads is finally ready to launch, but the drawback here is sliding ad inventory prices. Not good in the short run because Snap have only 191 million DAU`s, an increase of 4 million from the Q4 but below estimates of 194 million.

The company has also struggled with the impact of a product redesign in February that was widely criticized. That didn`t help the stock price that crashed to a record low on May 2 after it reported first-quarter earnings.

They missed views on revenue, user growth and several other key metrics, and analysts slashed price targets. The IPO was held in March 2017, and pricing shares were $17. It went up 2,5 percent on Monday and ended the session at $13,05. The stock is down 11 percent in 2018.

Will Snap Inc take a hit from the implementation of Europe`s GDPR (General Data Protection Regulation)? The same types of issues that led to big declines for Facebook and Twitter.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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by | April 22, 2015 · 6:43 pm

Tech reports on the way

Earnings reports are back on track again, and this time I will as usual follow tech companies. It is a huge day for tech company earnings tomorrow, and we will see reports from Amazon.com (AMZN), Google Inc (GOOG/GOOGL), Digi International Inc (DIII), Ericsson (ERIC), Verisign Inc (VRSN) and the good old Bill Gates company Microsoft Inc (MSFT).

It is a very important day for Amazon.com tomorrow. More important than their previous reports, and analysts expect a loss of 12 cents per share on a revenue of $22,43 billion. Some people I have talked with expect profits of 1 cent per share.

The most exited issue about the report tomorrow will probably be their AWS (Amazon Web Services) revenue number.

Amazon Prime Air

We will probably see an all time high if the AWS numbers is good, and this is why Amazon.com is some different from Google and Microsoft. Synergy Research Group said Amazon`s AWS has a market share of 28 percent of the global cloud infrastructure market. Microsoft have 10 percent and Google 5 percent, but be aware that we are in an early stage.

Keep in mind that Amazon also can start to deliver packages at the cost of only $1! Last year, Amazon announced Prime Air which is Amazon`s company to deliver packages to the customers by a drone (UAV). If FAA say yes for this business, I think the traditional transport sector will be hit hard and shares of Amazon will fly high. Amazon shares is up 26,8% YTD, trading at $389,53.

Google and Microsoft will both report earnings on thursday, and the big question is; can Microsoft`s Nr. 2 search-engine Bing challenge the internet search giant Nr 1 Google?

Microsoft has been a Nr 2 for a while with 19,8% market share. Google is a clear winner in the U.S search market with a market share of 64,5%.

Google is still big and dominant, but Bing has become a major player in the search market. To compare; Yahoo is the third biggest in the U.S with a market share of 12,8%. AOL; 1,1%. But this is based on desktop search.

Desktop is one thing, but mobile is another. Google dominates the mobile search market with a 93% market share. Bing`s desktop market share can rise up if their Windows 10 are taking off with Bing as a major default search engine, but taking market share in the mobile market will be more difficult.

It will more difficult because Bing has no presence on Apple iOS, nor Android devices.

More exited tech reports and news is coming out. Not only on thursday, but on monday next week. I guess Apple and CEO Tim Cook will talk about Apple Watch on monday. Tim Cook`s first major product launch under his leadership.

Tim Cook is stepping out from Steve Jobs` enormous shadow and Apple Watch officially goes on sale on Friday. Apple haven`t revealed any pre-order sales data, but third-party estimates look great so far.

Any awful news for other smartwatch companies on monday?

 

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Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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by | March 17, 2015 · 5:58 pm

FedEx report on Wednesday morning

FedEx (FDX) is set to report fourth quarter earnings on Wednesday morning before the market open. Their rival UPS guided lower for its holiday period in January. According to some analysts, FedEx is in an «enviable possition» in the small package market.

Analysts say that the company`s cash levels are at an all time high, and their operations and fundamentals are extremely strong and suggest the potential for earnings and guidance upside. The company`s free cash flow has been a source of frustration for their shareholders in the past.

FedEx-Truck

Both FedEx and UPS are trading at about 4,6 percent free cash flow (FCF) yields based on 2016 estimates, but it is expected to see FedEx`s growth profile justifies the stock trading at a premium to UPS.

FedEx`s acquisition of Genco is fully funded and they can spend their $1 billion in a faster buyback or another acquisition. Growth expectations for FedEx are higher than their rival UPS, but UPS can be a better stock if you need income in the near future.

FedEx`s dividend yield is extremely low at 0,45 percent. If they continue to pay small dividends, they will have plenty of cash to buy back large amounts of its own shares and that will boost their own EPS.

I have talked about the transportation sector many times, and FedEx is one of them in this sector. The stock is up over 20 percent since last year, and the increase in price has pushed the dividend yield down to only 0,45 percent.

The street expected adjusted EPS of $1,87 on revenue of $11,79 billion. For Q4, adjusted EPS was estimated at $2,86 on revenue of $12,31 billion. Full year EPS was expected at $8,97 on revenue of $47,74 billion.

FedEx isn`t going to tell the market what they don`t already know on Wednesday. A better-than-expected earnings report could push the stock price up and above its 52-week high.

They cut costs in the express business to make up for lower volume, but that is not the way to grow. A resurgent U.S economy now affords the company a change to have its ground segment do all the heavy lifting for margins and profits.

The global economy is slow and so are China. A slower growth Chinese economy depends more on internal consumption and less on exports and that has been weighing on FedEx`s express segments for years.

Asia is slow, the U.S is picking up and the Europe is all about unfavorable foreign exchange. How will this impact the shares of FedEx? Let`s see on Wednesday. Expectations would put the company on track to reach its yearly goal of $8,50 to $9,00 in EPS. P/E is 22,48.

FedEx Corporation is now trading at $178,02. Up 0,39 percent.

 

 

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Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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by | February 4, 2015 · 6:45 pm

Twitter earnings

Twitter will report earnings after the market close tomorrow, February 5th, 2015. The stock is down since the market correction in october last year. Down about 40%. Investors are concerned about slower growth, and estimates are as low as they`ve ever been compared to the Wall Street consensus.

The estimates this time will come in-line with Wall Street expectations, rather than beat by a few cents per share as investors have gotten used to. Last quarter was not a good one for Twitter. The stock dropped down -13% as Twitter posted an earnings miss against the investors. They disappointed with MAU`s guidance.

twitter logo bird

It`s very important for a company like Twitter to have a lot of followers being active, and Twitter had 284 million monthly user accounts at the end of the third quarter. That`s 23% up year over year. By comparison, Facebook had 1,39 billion monthly active users (Q4). That`s an increase of 13%.

User activity is more important than billions of users on your platform. How many have a Facebook account, but don`t use it? This is why MAU is so important. Timeline views increased 14% YoY, but timeline views per MAU`s fell 7% last quarter, and that doesn`t matter so much as investors will watch the interaction between active users and timeline views.

Twitter are focusing more on «ad revenues per thousand timeline views» as others have different measures like revenue per user. Target marketing can be easier on Twitter than Facebook as the platform is for the pro`s, and it will be difficult to compare Facebook and Twitter on this case.

Facebook will have more appeal for the masses than Twitter. Twitter is better used for news and financial services and I`m in doubt that Twitter can build a mainstream platform like Facebook did over years. Expectations for Twitter is probably too high?

Twitter traded at $30 last summer and that`s close to its IPO price, but it have bounced and look like a growth stock right now.

Timeline views is $4,28 in the U.S and $0,84 outside the U.S, and advertising revenues per thousand timeline views increased by 83% YoY on Q3. It came in at $1,77.

The caution in the estimates this time may be a positive for Twitter than it were for Facebook last week. Small earnings beat could be a catalyst to the upside. Investors are looking for 88% revenue growth this quarter which is down from the triple digit gains Twitter has posted since its IPO. Earnings are expected to come in at 6 cents per share, which is all time high.

Twitter, tomorrow after the market close, February 5th, 2015.

 

 

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Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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