The markets have posted another solid week overall, with the S&P 500 gaining nearly 6% already this year. With regards to earnings, tech companies largely stole the spotlight, with Tesla Inc (NASDAQ:TSLA) cooling a bit after releasing fourth-quarter numbers and announcing the departure of its CFO on Thursday.
But earnings season is far from over. In addition to GDP, manufacturing and other important indicators coming out next week, there are also several earnings reports all investors should keep an eye on.
Acadia Pharmaceuticals Inc. (NASDAQ:ACAD), Priceline Group Inc (NASDAQ:PCLN) and 3D Systems Corporation (NYSE:DDD) are all blowing away the broader market with double-digit gains just two months into 2017.
Will their earnings reports add more fuel to the fire? Let’s take a look.
Earnings Reports: Priceline (PCLN)
Earnings Date: Feb. 27
Compared to the other picks on this list, Priceline is a much more traditional stock and one that’s growing slowly with acquisitions. Most recently, Priceline bought European travel company Momondo Group for $550 million in cash.
But when it comes to reporting earnings Priceline has a long string of missed earnings. In fact, PCLN hasn’t topped Wall Street’s earnings in any of the past three quarters. For the current quarter, earnings are only expected to grow by 3%. But longer-term, the five-year average is slated for 17%, which is right in line with the company’s organic growth.
That’s solid growth. Keep an eye on Wall Street’s reaction to see how much of a premium investors are willing to swallow for this internet play.
Earnings Reports: 3D Systems (DDD)
Earnings Date: Feb. 28
3D-printing play 3D Systems ran up like crazy in 2013 before plummeting in the years that followed. That drop bred opportunity for any bottom-fishers, though; DDD has gained 75% over the past 12 months, including 25% in 2017 alone.
Much like the next pick in this list, 3D Systems has largely been fueled by acquisition chatter. However, DDD has met or beat earnings expectations in each of the past four quarters, with the beats coming in 55%, 100% and 500%, respectively, better than Wall Street’s consensus.
This quarter, a slight earnings contraction is expected. But considering the wildcard nature of DDD stock, I don’t expect investors to be phased. Long-term growth is trend-driven and quarterly fluctuations aren’t as important for such plays.
Earnings Reports: Acadia Pharmaceuticals (ACAD)
Earnings Date: Feb. 28
Acadia has gained 35% since the start of 2017 and has doubled over the past 12 months. The driving factors are pretty straightforward: recent acquisition chatter and FDA approval for its first drug, Nuplazid, a treatment of hallucinations and delusions associated with Parkinson’s disease psychosis.
One thing that hasn’t been driving ACAD stock? Earnings. The company has missed Wall Street’s expectations in each of the past four quarters. And when it reports on Tuesday, Acadia is expected to lose 65 cents per share — wider than the 45-cent-per-share loss of a year ago. Still, insane sales growth is what has investors coming back, which is why the top line is where your eye should go when ACAD releases its numbers.
Keep an eye on sales growth of Nuplazid and any updates about potential future treatments.
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.
