The first few weeks of every quarterly cycle lay out the broad strokes of how well U.S. companies as a group can justify another season of upside.
We know now that the bulls are back in control, but with around 850 companies reporting in the next five trading days, there are still plenty of details left to fill in — and it’s attention to detail that gives focused investors like us a market edge.
We talked recently about the earnings reports I’m watching in the coming weeks to give us clues into the economies and sectors that have struggled in the past, and today I’d like to share a few thoughts.
So here are three more upcoming reports that should provide a good pulse on telecom, tech and the online consumer.
Earnings to Watch: T-Mobile (TMUS)
First up is T-Mobile US Inc (NASDAQ:TMUS), which on Tuesday morning might be the bright spot in an otherwise stagnant telecom sector.
With most of the big carriers either in decline or actively bleeding cash, we’re looking to TMUS to prove that this is still more than a zero-sum game — or at least that subscriber revenue falling away from other networks is collecting here to support renewed dividend payments.
TMUS stated previously that it has added 2.1 million net customers, taking its total customer count to 71.5 million at the end of 2016. And if management held the bottom line steady, this might turn into one of the highlights of the season.
Earnings to Watch: Cisco (CSCO)
Cisco Systems, Inc. (NASDAQ:CSCO) needs to give shareholders at least a little hope that the network equipment business is turning around when it reports its quarterly results Wednesday night.
As of now, the Street is looking for earnings of 56 cents a share and for revenues to decrease 3.2% year-over-year to $11.55 billion. We’ve had four quarters in a row of year-over-year revenue deterioration and odds are good the trend continues, which is why the outlook is critical next week.
CSCO has coasted on ambient tech sector buzz, and it would be wonderful if this giant could start pulling its weight again and justify its valuations in the process.
Earnings to Watch: Groupon (GRPN)
Groupon Inc (NASDAQ:GRPN) is a much smaller turnaround prospect, but I’ll be watching its numbers Wednesday night for a better sense of how the consumer end of the online universe is holding up.
Wall Street needs absolute clarity here: with close to 1,300% earnings reflation now baked into the share price, even a few thousand dollars more or less profit can throw the math in wide loops. While I hope the loop will point to the stratosphere, we’ll simply have to watch and wait.
I look forward to what the next round of earnings brings us, and it may even uncover a new buying opportunity or two. We’ll just need to see how the actual results play out first.
Hilary Kramer is the editor of GameChangers, Breakout Stocks, High Octane Trader, Absolute Capital Return and Value Authority. She is an accomplished investment specialist and market strategist with more than 25 years of experience in portfolio management, equity research, trading, and risk management. She has extensive expertise in global financial management, asset allocation, investment banking and private equity ventures, and is regularly sought after to provide her analysis on Bloomberg, CNBC, Fox Business Network and other media.
