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The Week Ahead: August 7
Earnings this week will begin to taper down with Disney (DIS), NVIDIA (NVDA), and Snap (SNAP), headlining, with the retailers coming in towards the end of the week. Last quarter was disastrous for most of the retailers with this quarter not expected to be much better.
Macys
For Macy’s revenue estimates for this current quarter have been trending lower for some time, and the company has had a mixed bag when it comes to hitting estimates.  Analysts estimate that fiscal second quarter results declined by nearly 15 percent to $0.46, while revenue fell almost 6 percent to $5.515 billion.
(Chart provided by YCharts)
NVIDIA
Nvidia (NVDA) shares are up by nearly 188 percent over the past 52-weeks, and expectations could not be higher going into this week’s results. Analysts estimate the fiscal second quarter EPS grew by nearly 53 percent to $0.81, while revenue increased by almost 38 percent to $1.962 billion. Â The revenue estimates going into this quarter have been steadily rising through the year. The company’s ability to beat those estimates time and time again, mean an inline will not be good enough. There will need to be a solid beat and raise.
(Chart provided by YCharts)
Disney
For Disney, there has been so much talk about ESPN and cable subscriber losses; it means it is time for Disney to change the narrative. Analysts estimate fiscal third quarter EPS declined by roughly 4 percent to $1.55, while revenue grew by only 1 percent. Revenue estimates have fallen significantly going into this quarterly report, and the focus on subscribers is now a two-year old story.
Snap
The focus on Snap, the parent company of Snapchat, has recently been on the lockup expiration that took place at the end of July. Shares of the stock are down significantly from its IPO price of $17, and the company will need to deliver solid growth this quarter if it hopes to get back to $17. Â There will need to a significant rise in Daily Active Users and Average Revenue Per User (ARPU) to get investor excited again.
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Disclaimer:
Michael Kramer and the Clients of Mott Capital own shares of DIS.
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Charts used with the permission of Bloomberg Finance L.P. This report contains independent commentary to be used for informational and educational purposes only. Michael Kramer is a member and investment adviser representative with Mott Capital Management. Mr. Kramer is not affiliated with this company and does not serve on the board of any related company that issued this stock. All opinions and analyses presented by Michael Kramer in this analysis or market report are solely Michael Kramer’s views. Readers should not treat any opinion, viewpoint, or prediction expressed by Michael Kramer as a specific solicitation or recommendation to buy or sell a particular security or follow a particular strategy. Michael Kramer’s analyses are based upon information and independent research that he considers reliable, but neither Michael Kramer nor Mott Capital Management guarantees its completeness or accuracy, and it should not be relied upon as such. Michael Kramer is not under any obligation to update or correct any information presented in his analyses. Mr. Kramer’s statements, guidance, and opinions are subject to change without notice. Past performance is not indicative of future results. Neither Michael Kramer nor Mott Capital Management guarantees any specific outcome or profit. You should be aware of the real risk of loss in following any strategy or investment commentary presented in this analysis. Strategies or investments discussed may fluctuate in price or value. Investments or strategies mentioned in this analysis may not be suitable for you. This material does not consider your particular investment objectives, financial situation, or needs and is not intended as a recommendation appropriate for you. You must make an independent decision regarding investments or strategies in this analysis. Upon request, the advisor will provide a list of all recommendations made during the past twelve months. Before acting on information in this analysis, you should consider whether it is suitable for your circumstances and strongly consider seeking advice from your own financial or investment adviser to determine the suitability of any investment.