3 Technology Earnings Reports to Watch Next Week

Advertisement

Earnings seasons continues, and 73% of S&P 500 companies that have reported second-quarter earnings have topped Wall Street’s expectations, thanks in part to a blended growth rate of 7.2%.

Source: Shutterstock

Next week, three big names — Apple Inc. (NASDAQ:AAPL), Tesla Inc (NASDAQ:TSLA), and Activision Blizzard, Inc. (NASDAQ:ATVI) — continue earnings season.

Here’s what to watch.

Tech Earnings Reports to Watch Next Week: Apple Inc (AAPL)

Apple stock has gained 43% over the last 12 months, including 30% zooming in on 2017. Next week, a catalyst for another move higher could be Apple earnings, even though the spring quarter tends to be a slow one for the company.

Apple AAPL stock

The company is expected to report earnings of $1.57 per share, good for a 10% year-over-year expansion. That’s lower than the consensus a mere three months ago, though, and isn’t all organic growth. Sales are only on tap to expand by 6%.

There have been rumors of a delay in the newest iPhone release; keep an ear to the ground to see if management nods to that possibility. And speaking of management, Apple is historically quite good at managing its own expectations. The company has beat the consensus for the past four quarters. Another earnings beat would hardly be a surprise.

Tech Earnings Reports to Watch Next Week: Tesla Inc (TSLA)

Tesla is also soaring in 2017, gaining 59% since the start of the year. But Tesla is a far cry from Apple in terms of its stage of life. For the most recent three months, Tesla is slated to lose $1.80 per share, an even wider loss than it posted a year ago. Just 90 days ago, the company was expected to lose just 70 cents per share, too. As a result, expectations for the full year’s loss have widened from $2.40 to nearly $6 per share.

Tesla Inc (TSLA)

Tesla doesn’t have quite the track record that Apple does, either, of managing expectations. It’s only beat Wall Street’s hopes in one of the last four quarters.

Still, no one has been bidding Tesla stock higher under the guise of profitability. The biggest news item from the company was the recent release of the Model 3, which is meant to be Tesla’s entrance into the mass market.

Tech Earnings Reports to Watch Next Week: Activision Blizzard, Inc. (ATVI)

Video game publisher Activision Blizzard has also been on a tear of late, gaining nearly 70%. The company is scheduled to report earnings on Aug. 3 and pretty substantial declines are on tap. Earnings are expected to come to 30 cents per share compared to 54 cents per share a year ago—a 44% decline. Meanwhile, the top line is slated to drop by 24%.

activision blizzard

Still, that’s but a blip for the overall uptrend of ATVI. Earnings over the next five years are expected to average gains of almost 20%. That’s not too far from the company’s forward P/E of 25. And the company has beat estimates handily in recent quarters—beats between 24% and 48%.

Then again, as is the case for Apple and Tesla, straight earnings aren’t the only thing to watch for in the report. Monthly active users have been declining for ATVI for the last several quarters, and another decline could have investors egging to take their profits and head for the door.

Hilary Kramer is the editor of GameChangersBreakout StocksHigh 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.


Article printed from InvestorPlace Media, https://investorplace.com/2017/07/3-technology-earnings-reports-to-watch-next-week-aapl-tsla-atvi/.

©2024 InvestorPlace Media, LLC