3 Hot Earnings Reports to Watch Next Week

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earnings reports - 3 Hot Earnings Reports to Watch Next Week

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Earnings season is in full swing and already there have been some market-moving earnings reports. Overall, the news has been good enough: On Wednesday, the S&P 500 touched its highest levels since late January.

But the news hasn’t been all good. Most notably, Facebook (NASDAQ:FB) plunged after its second-quarter report, losing a whopping $119 billion in market value. That’s an all-time record for a single stock’s loss of market value in a single session, topping a $91 billion drop for Intel (NASDAQ:INTC) during the dot-com bust. On the positive side, Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) trades at an all-time high after a big earnings beat, and Amazon (NASDAQ:AMZN) rallied in after-hours trading on Thursday.

It’s unlikely that next week’s batch of earnings reports will move the market the way Facebook did. But there are several key reports next week, including these three earnings reports to watch.

The world’s most valuable company will release its numbers. A Chinese tech giant will try to jumpstart investor optimism. And what might be the most anticipated report of the quarter, if not the year, arrives on Wednesday afternoon. Facebook’s record likely won’t be broken, but it should be an interesting week nonetheless.

Earnings Reports to Watch: Baidu (BIDU)

Earnings Reports to Watch: Baidu (BIDU)

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Earnings Report Date: Tuesday, July 31, after market close

As Baidu (NASDAQ:BIDU) heads into its Q2 release on Tuesday, BIDU stock looks like it’s in excellent position. Revenue grew 25% and Street estimates suggest a 22% increase in the second quarter. Profits are slowing — consensus estimates call for less than 4% growth — but investments in artificial intelligence are affecting margins and should have a long-term payoff.

It’s everything else that’s been a problem for BIDU, which has been mostly range-bound for about nine months now. The departure of its CEO sent the stock tumbling back in May. Concerns about a potential trade war with the U.S. have hit a number of Chinese stocks for several months now and Chinese issues, on the whole, have entered a bear market.

BIDU did set an all-time high in May, coming out of strong Q1 earnings. A repeat could be on the way next week. Another beat relative to consensus could remind investors of the fundamental value here, and perhaps make the market forget about the external risks.

Earnings Reports to Watch: Apple (AAPL)

Earnings Reports to Watch: Apple (AAPL)

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Earnings Report Date: Tuesday, July 31, after market close

Apple (NASDAQ:AAPL) shareholders will have one number on their mind next week: $1 trillion. Apple stock closed Thursday with a market capitalization of $976 billion. Just a 2.5% gain from current levels would make Apple the first company ever valued at $1 trillion-plus.

That gain isn’t guaranteed. At the moment, it seems likely that Apple will have a quiet fiscal Q3 report. The intense debate over the iPhone X has passed. Options markets actually are pricing in less than a 4% move in AAPL stock next week.

After spending time at a retail brokerage, Vince Martin has covered the financial industry for close to a decade for InvestorPlace.com and other outlets.

The Street is projecting a strong quarter, with 15%-plus revenue growth and a whopping 30% rise in earnings-per-share. Obviously, tax reform and share buybacks will help the latter figure, but expectations still look reasonably high. If Apple meets that figure, it’s likely to reach a historic milestone. If not, shareholders will have some more waiting to do.

Earnings Reports to Watch: Tesla (TSLA)

Earnings Reports to Watch: Tesla (TSLA)

Earnings Report Date: Wednesday, Aug. 1, after market close

Now, the reaction to second-quarter earnings from Tesla (NASDAQ:TSLA) is going to be anything but quiet. Options markets here are pricing in a 9% move, and that seems rather low. The market’s most intense battleground stock has seen its debate intensify to a fever pitch over the past few weeks.

First, Tesla hit its 5,000-per-week production number at the end of last month … kind of. CEO Elon Musk then insulted one of the Thai rescue divers, allegedly called a critic’s boss and faced a potential whistleblower. The noise hasn’t been good for TSLA stock, which has dropped about 18% from June (and 2018) highs.

On Wednesday, the numbers will arrive. And they will be closely watched. Bears certainly will be scrutinizing the company’s gross margin figures as it ramped Model 3 production. Bulls will be looking for a revenue beat. Management commentary on reservations, production levels, and perhaps new offerings like the Model Y could move TSLA stock. And it’s possible Musk once again will be irritated on the post-earnings call.

Whatever happens, two things are certain. First, there will be fireworks. And second, the bull/bear debate over Tesla won’t end on Thursday or any time soon.

As of this writing, Vince Martin did not hold a position in any of the aforementioned securities.


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