For Immediate Release
Chicago, IL –August 07, 2017 – Zacks.com releases the list of companies likely to issue earnings surprises. This week’s list includesNVIDIA (NASDAQ:(NVDA - Free Report) – Free Report), Disney (NYSE:(DIS - Free Report) – Free Report), Priceline (NASDAQ: – Free Report), TripAdvisor(NASDAQ:TRIP – Free Report) and Macy’s (NYSE:(M - Free Report) – Free Report).
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Q2 Earnings Season Brings Strength All Around
The bulk of the Q2 earnings season is now behind us, with results from only about 16% of the S&P 500 members still awaited. The Retail sector is the only one at this stage that has a sizable number of reports still to come, with a number of traditional retailers on deck to report results. With another 35 index members reporting results this week, the Q2 earnings season will have come to an end for 91% of S&P 500 members by the end of the week.
As we have been saying all along since the start of this reporting cycle, the Q2 earnings season has turned out to be very good. The key positives include broad-based growth reaching double-digit level for the second quarter in a row, record earnings tally, an abundance of positive surprises and favorable trends on the revisions front.
We will discuss Q2 results in greater detail below, but let’s focus on what’s coming out this week.
Key Earnings Reports for the Week of August 7th
This week brings in results from more than 700 companies, including 35 from the S&P 500 index. There is no shortage of big-name operators coming out with results this week, but we are featuring just a few here
NVIDIA (NASDAQ:NVDA – Free Report) shares have literally been on fire since the last earnings report on May 9th. The stock was down -3.5% on the year through May 9th, but has been an outstanding performer since that day. Year to date, the stock is now up +57.3%, handily outperforming the Zacks Semiconductor industry’s +17% gain and the broader Zacks Tech sector’s +17.2% gain. The stock has long history of making big moves on earnings releases, though the reaction following the May 9th report was in a league of its own. Estimates for the June quarter initially went up, but have been otherwise stable for the last two months, with the company expected to earn 69 cents on +1.96 billion in revenues, up 56% and +37.1% from the year-earlier period, respectively. NVIDIA is scheduled to report Q2 results after the market’s close on August 10th.
Disney (NYSE:DIS – Free Report) shares led the S&P 500 index through April 27th this year, but have been steady underperformers since then. The stock is currently up +3.3% in the year-to-date period, underperforming the +10.5% gain for the S&P 500 index and the Zacks Consumer Discretionary sector’s +14.5% gain. The never ending worry about Disney remains the fate of its ESPN franchise in the current cord-cutting media environment. Disney reports Q2 results after the market’s close on August 8th, with the company expected to come out with $1.53 per share in earnings (down -5.4% from the year-earlier period) on $14.4 billion in revenues (up +1.2%). Estimates have been steadily coming down since the start of the period, with the current $1.53 per share estimate down from $1.69 per share on July 1st.
Priceline(NASDAQ:PCLN – Free Report) has been a standout performer this year, with the stock up +38.5% in the year-to-date period vs. +33.7% for Expedia and +47.4% gain for the Zacks e-commerce industry. The stock always responds strongly to the earnings report; it was down big following the last earnings release on May 9th. The company is scheduled to report Q2 results after the market’s close on August 8th. The online travel leader is expected to report $14.27 in EPS on $3 billion in revenues, which represents year-over-year changes of +10.7% and +17.2%, respectively. Trends in estimate revisions have mostly been negative. TripAdvisor (NASDAQ:(TRIP - Free Report) – Free Report) will also report after the market’s close on August 8th.
Macy’s (NYSE:M – Free Report) and the broader department store space appear to be in an existential struggle. The stock is down -34.7% in the year-to-date period vs. -24.2% decline for the Zacks department store industry. This compares to +10.6% gain for the S&P 500. Driving this underperformance is the industry’s competitive landscape characterized by the secular shift of sales to the online medium that is showing up in falling traffic and same-store sales. The company has been trying to bring down its store count and we will likely hear more on that front as it reports Q2 results before the market’s open on Thursday August 10th. The company is expected to report $0.44 per share in earnings on $5.49 billion in revenues, down -18.3% and -6.4% from the year-earlier period, respectively.
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