The Week Ahead: Exploring Amazon, AMD, Alphabet, Caterpillar

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Big Week For Earnings

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Earnings kick-off in a big way this week, with plenty of the most prominent company’s results to be announced. Thursday will be the keynote event with corporations such Alphabet, Amazon, Microsoft, and Intel all going on the same day.

Amazon’s results will be the most intriguing since it is anyone’s guess as to the earnings results they will post. Remember last quarter they missed earnings results by a stunning 72 percent. We previewed the upcoming results on October 17, check it out.

Below is a calendar of some of the most significant companies and there reporting dates. Additionally, the table we complied has estimates and year-over-year growth rates calculated.

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AMD

When Advanced Micro Devices reports results on Tuesday, October 24, the company is expected to show that revenue climbed in the third quarter by nearly 15.2 percent over the same period a year ago. Analyst consensus estimates have revenue at $1.027 billion, with EPS of $0.08. Earnings are expected to grow by about 150 percent over last year’s results. Investors will be focused on guidance for the fourth quarter, which is estimated for $0.04 on revenue of $1.342 billion. Gross margins will be critical for AMD when it reports as well. Gross margin last quarter came in at 33 percent, improving margins will also be viewed positively.

AMD Gross Profit Margin (Quarterly) Chart

AMD Gross Profit Margin (Quarterly) data by YCharts

Amazon

It’s all about top-line revenue for Amazon when it reports results. Wall Street will give Amazon a free pass when it comes to earnings, because of how heavily the company invests in the future. Last quarter the company reported an R&D expense of over $5 billion, which has been growing nearly as fast as the stock price over the past years. Top-line revenue growth is the key here, as well as guidance for the fourth quarter. The revenue estimate for the fourth quarter stands at $58.51 billion and is expected to be the biggest quarter for the company in 2017.

AMZN Chart Amazon

AMZN data by YCharts

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Alphabet

Alphabet is expected to have revenue growth of nearly 21 percent when it reports third-quarter numbers. Revenue is seen growing to $27.11 billion, while EPS is expected to shrink by 8.1 percent to $8.32. Pay attention to any acceleration or deceleration in the all the click metrics; they are likely to be the key.

Thematic Growth Investment Portfolio – IB Asset Management

Mott Capital Management uses a long-term thematic growth approach to investing in equities. We search for investments that both reflect and help to shape…

Caterpillar

Caterpillar has to be the comeback story of the year, with its shares up 41 percent in 2017. It wasn’t long ago its shares, and the stock price was in the basement. It is incredible what top-line revenue can do to revive a stock. Revenue is expected to grow by nearly 17 percent this quarter to $10.7 billion, while EPS estimates stand at $1.27, growth of almost 50 percent.

CAT Chart caterpillar alphabet

CAT data by YCharts

Good Luck!
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We offer a lot of great commentaries all week talking about the major an relevant market events. Be sure to subscribe to get this all and of all free commentaries sent directly to your inbox or follow us on Twitter.

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Michael Kramer and the clients of Mott Capital own shares of GOOGL, V

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 recommendations made during the past twelve months. Past performance is not indicative of future.

 

Tags: EARNINGS, AMD, ALPHABET, AMAZON, CATERPILLAR