The week of April 17th is when we get into the very heart of earnings season, with a raft of companies disclosing quarterly reports. Let's take a look at a few of the tech heavyweights to get a sense of what the Street is expecting.
Netflix (NFLX) reports on April 17, with analysts projecting EPS of $0.37 and revenue of $2.65 billion. They are looking for NFLX to guide the 2Q'17 to revenue of about $2.76 billion. The big number to watch for is the subscriber growth. In its Q4 report, the company guided total subscriber net additions of 5.2 million, comprising 1.5 million U.S. subscribers and 3.7 million international subscribers. Shares of NFLX are up nearly 17% in 2017 so far.
Microsoft (MSFT) is expected to report results on April 27th, with analysts looking for EPS of $0.70 and revenue of $23.60 billion. The company guided the fiscal fourth quarter of 2017 to EPS of $0.69 and revenue of $24.49 billion. MSFT has seen its revenue decline over the past couple of years and has recently seen the decline stabilize.
Amazon.com (AMZN) has not scheduled its quarterly results data yet, but in 2016 it released results on April 28th. Analysts expect AMZN to report EPS of $1.13 and revenue of $35.32 billion for the first quarter of 2017. For the second quarter, analysts are looking for EPS of $1.90, and revenue of $36.91 billion. AMZN has been able to grow revenue nearly every quarter at a seeming steadily and faster rate each year. Pay attention to any details about Amazon Web Services or its Amazon Prime Streaming Video Service.
Facebook (FB) has yet to set a date for its quarterly results, but last year the company reported results on April 27th. For the first quarter 2017, analysts are looking for EPS of $1.12 and revenue of $7.82 billion. For 2Q'17, the Street is looking for EPS of $1.31 and revenue of $9.00 billion. FB is an advertising-based revenue model, pay attention to the number of new users and what parts of the world they are coming from. The US is the driving force behind FB revenue, with the average revenue per user being significantly higher in the US and Canada than any other part of the world. (See also, The Contrarian: BTIG Goes All In on Facebook.)
Alphabet (GOOG, GOOGL) is expected to report quarterly results on April 27th, with analysts looking for EPS of $9.35 and revenue of $24.15 billion. Meanwhile, for 2Q'17 analyst are expecting revenue of $25.31 billion and EPS of $10.00. Google has its hands in many different initiatives these days, but one of the more interesting ones that just undertaken was the new YouTube TV. YouTube has always been hard for GOOGL to monetize, listen for any word on YouTube and YouTube TV.
Nvidia (NVDA) was the darling of 2016, easily beating the competition as one of the best performing equities. The year 2017 has been a different story for the company, with the stock down nearly 10%. Analysts are looking for EPS of $0.81 and revenue of $1.910 billion. Meanwhile, analysts are expecting fiscal 2Q'18 guidance of EPS around $0.77 and revenue of $1.906. NVDA is a company that was having monster quarters in 2016; it will be important to see whether that continues in 2017. If not, the stock will likely have a hard time moving higher, given expectations remain high. Pay attention to growth in the company's data center unit.
Tesla (TSLA) hasn't announced its earnings date yet, but in 2016 the company reported results on May 4th. Analysts are looking for a loss per share of -$0.78 and revenue of $2.59 billion. For 2Q'17, analysts are looking for guidance of a loss per share of -$0.70 and revenue of $2.683 billion. Let's face it, the only thing that investors care about at this point is the Model 3 launch, which is still expected the second half of 2017. TSLA shares are up nearly 40% in 2017 to date.
Apple (AAPL) is expected to report quarterly results on May 2nd. Analysts are looking the company to report EPS of $2.02 on revenue of $52.96 billion. For fiscal 3Q, analysts are looking for EPS of $1.62 and revenue of $45.7 billion. iPhone and iPad sales remain the key items, although iPhone 7 is moving out of focus as investors turn their attention to the upcoming iPhone 8. It would be interesting to see if the company talks about its massive cash pile.
All data and estimates provided by YCharts.
Michael Kramer and the clients of Mott Capital Management, LLC own shares of NFLX, GOOGL, and TSLA. Mott Capital Management, LLC is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Upon request the advisor will provide a list of all recommendation made during the past twelve months. Past performance is not indicative of future performance.