Q2 Earnings – Week 6

 Q2 Earnings – Week 6

There are few more companies of importance reporting for Q2 left, so let’s see what they can show us:

This Week

Tuesday

Home Depot Inc – estimated EPS 1.97, +15.1% Y/Y; Revenue 26 494 mln

BHP Billiton Ltd (AU) – estimated EPS 0.11, -74.1% Y/Y; Revenue 15 619 mln

  

Wednesday

Lowe’s Cos Inc – estimated EPS 1.42, +18.0% Y/Y; Revenue 18 368 mln

Staples Inc – estimated EPS 0.12, +0.0% Y/Y; Revenue 4 767 mln

ABN AMRO Group NV (NL) – estimated EPS 0.55, …% Y/Y; Revenue 2 194 mln

QBE Insurance Group Ltd (AU) – estimated EPS 0.21, -39.1% Y/Y; Revenue 8 363 mln

Balfour Beatty PLC (GB) – estimated EPS 0.11, +155.8% Y/Y; Revenue 7 417 mln

Cisco Systems Inc – estimated EPS 0.60, +1.5% Y/Y; Revenue 12 570 mln

Thursday

Gap Inc – estimated EPS 0.59, -8.4% Y/Y; Revenue 3 842 mln

Nestle SA (CH) – estimated EPS 1.59, +6.8% Y/Y; Revenue 43 175 mln

Wal-Mart Stores Inc – estimated EPS 1.02, -5.7% Y/Y; Revenue 120 287 mln

Raiffeisen Bank International (AT) – estimated EPS 0.55, -32.3% Y/Y; Revenue 1 161 mln

In the recent EU banking stress test Raiffeisen was flagged with few others as the one that would need more capital during stress times. Let’s see what management will say about latest results, capital adequacy and future plans.

Friday

Deere & Co – estimated EPS 0.94, -38.4% Y/Y; Revenue 6 045 mln

Good luck Champs!

Mr Hawk

DISCLAIMER: This material was created for informational purposes only and represents the Land of Trading team’s view of the past and current economic and capital market environment. It is not an investment advice and should not be viewed that way at all, and the creators of this material cannot be held liable for any potential losses resulting from trading, where despite this disclaimer someone would consider this material as an investment advice. All rights reserved ©2016. Contact: landoftradingATgmail.com

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Q2 Earnings – Week 5

Q2 Earnings – Week 5

We are coming to the end of Q2 earnings season as the most of US companies have already reported while there are still some international names to come. This week will be primarily about retailers and confidence of retail consumers to spend money.

Last Week

Pfizer Inc – was out with better than expected figures but the revenue coming from drugs protected by patents disappointed

Tesla Motors Inc – published Q2 loss on the back of huge investments related to increasing the production of Model S and X cars that is still not covered by rising sales yet

For more on Tesla and SolarCity you can check our Trade idea: http://landoftrading.blogspot.sk/2016/07/trade-idea-tesla-short.html

Twenty-First Century Fox Inc – better on very good revenue from advertising

Humana Inc – smaller profit as the company is offsetting losses from Obamacare activities

Kraft Heinz Co – beating expectations and rising profit four times. Actually, the cost cutting and commodity prices being very low helped.

Manulife Financial Corp (CA) – disappointed and informed about a share buy-back and potential charge of CAD 500 mln

BCE Inc (CA) – above expectations on higher wireless subscribers

Magna International Inc (CA) – enjoying the rising demand for cars in North America and Europe, thus boosting profits

Bombardier Inc (CA) – the recent “support” from Province of Quebec and awaited alike approach from Government of Canada are still not sufficient as the demand for business jets is weak

Berkshire Hathaway Inc – profits up 25% on positive insurance and investments activities

This Week

Monday

Tyson Foods Inc – estimated EPS 1.06, +32.4% Y/Y; Revenue 9 329 mln

Are lower commodity prices and good supply still positive for business?

Allergan PLC – estimated EPS 3.34, -24.3% Y/Y; Revenue 4 086 mln

One thing are earnings, the other is the fresh USD 40.5 bln of cash from the sale of part of its business (to Teva Pharmaceuticals) sitting on company books. A potential acquisition of Biogen Inc where the company may compete with Merck & Co Inc may be a good use of funds.

Computer Sciences Corp – estimated EPS 0.45, -59.4% Y/Y; Revenue 1 909 mln

Tuesday

Bridgestone Corp (JP) – estimated EPS 89.52, -4.0% Y/Y; Revenue 929 244 mln

Charter Communications Inc – estimated EPS 0.15, +152.3% Y/Y; Revenue 9 474 mln

Walt Disney Co – estimated EPS 1.61, +10.8% Y/Y; Revenue 14 158 mln

Valeant Pharmaceuticals International Inc – estimated EPS 1.48, -42.0% Y/Y; Revenue 2 468 mln

How to handle the market confidence with falling numbers?

Dai Nipon Printing Co Ltd (JP) – estimated EPS 51.10, -3.8% Y/Y; Revenue 1 475 333 mln

Daikin Industries Ltd (JP) – estimated EPS 474.33, +1.1% Y/Y; Revenue 2 057 942 mln

SolarCity Corp – estimated EPS -2.53, -57.1% Y/Y; Revenue 147 mln

Recently, the company shareholders accepted the USD 2.6 bln take over from Tesla but the key risks in slowing demand, lower support credits or risk of potential changes to green energy support, if Republican candidate wins November presidential elections, are still present.

voestalpine AG (AT) – estimated EPS 0.56, -38.3% Y/Y; Revenue 2 748 mln

SFR Group SA (FR) – estimated EPS 1.22, -23.8% Y/Y; Revenue 10 800 mln

CEZ AS (CZ) – estimated EPS 16.79, +14.1% Y/Y; Revenue 49 083 mln

Exelon Corp – estimated EPS 0.56, -5.1% Y/Y; Revenue 6 966 mln

Wednesday

Aramark – estimated EPS 0.32, 10.0% Y/Y; Revenue 3 580 mln

Michael Kors Holdings Ltd – estimated EPS 0.74, -15.1% Y/Y; Revenue 953 mln

Ralph Lauren Corp – estimated EPS 0.89, -18.3% Y/Y; Revenue 1 530 mln

OMV AG (AT) – estimated EPS 0.51, -53.8% Y/Y; Revenue 4 356 mln

Commonwealth Bank of Australia (AU) – estimated EPS 2.70, -3.0% Y/Y; Revenue 12 535 mln

Sompo Japan Nipponkoa Holdings (JP) – estimated EPS 365.81, -7.2% Y/Y; Revenue 3 292 724 mln

Sun Life Financial Inc (CA) – estimated EPS 0.92, -8.0% Y/Y; Revenue 7 412 mln

Adecco Group AG (CH) – estimated EPS 1.91, +78.5% Y/Y; Revenue 5 687 mln

G4S PLC (GB) – estimated EPS 0.07, +50.0% Y/Y; Revenue 3 436 mln

Avnet Inc – estimated EPS 0.88, 23.8% Y/Y; Revenue 6 212 mln

Novozymes A/S (DK) – estimated EPS 2.52, +13.5% Y/Y; Revenue 3 554 mln

E.ON SE (DE) – estimated EPS 0.06, -25.9% Y/Y; Revenue … mln

Thursday

Alibaba Group Holdings Inc (CN) – estimated EPS 0.63, …% Y/Y; Revenue … mln

The market is expecting a 50% jump in revenue but the recent investments may put some pressure on profitability.

Kohl’s Inc – estimated EPS 1.04, -3.3% Y/Y; Revenue 4 165 mln

Macy’s Inc – estimated EPS 0.45, -30.2% Y/Y; Revenue 5 750 mln

Rising consumer appetite might have helped the company’s figures.

Nordstrom Inc – estimated EPS 0.56, -40.2% Y/Y; Revenue 3 660 mln

TUI AG (DE) – estimated EPS 0.25, +84.2% Y/Y; Revenue 5 060 mln

Henkel AG & Co KGaA (DE) – estimated EPS 1.31, -21.4% Y/Y; Revenue 4 710 mln

Petroleo Brasileiro SA (BR) – estimated EPS 0.44, …% Y/Y; Revenue 77 400 mln

We may see some signs of improved cash-flow and debt numbers.

Aegon NV (NL) – estimated EPS 0.06, -68.8% Y/Y; Revenue … mln

Banco do Brasil SA (BR) – estimated EPS 0.72, -32.9% Y/Y; Revenue 23 400 mln

KBC Group NV (BE) – estimated EPS 1.38, -13.8% Y/Y; Revenue 1 812 mln

Swiss Life Holding AG (CH) – estimated EPS 14.33, -7.4% Y/Y; Revenue … mln

Zurich Insurance Group AG (CH) – estimated EPS 5.06, -7.8% Y/Y; Revenue … mln

NVIDIA Corp – estimated EPS 0.48, -42.1% Y/Y; Revenue 1 353 mln

Will see how positively the re-focus from declining PC production to gaming effected company.

thyssenkrupp AG (DE) – estimated EPS 0.27, -37.7% Y/Y; Revenue 10 254 mln

China Mobile Ltd (CN) – estimated EPS 1.71, …% Y/Y; Revenue 190 828 mln

Deutsche Telecom AG (DE) – estimated EPS 0.19, -20.8% Y/Y; Revenue 17 926 mln

Telstra Corp Ltd (AU) – estimated EPS 0.21, +16.1% Y/Y; Revenue 14 136 mln

RWE AG (DE) – estimated EPS 0.99, -45.8% Y/Y; Revenue 45 224 mln

Friday

JC Penney Co Inc – estimated EPS -0.14, +65.4% Y/Y; Revenue 2 929 mln

Metro Inc (CA) – estimated EPS 0.73, +10.9% Y/Y; Revenue 3 984 mln

Brookfield Asset Management Inc (CA) – estimated EPS 0.23, -62.9% Y/Y; Revenue 4 779 mln

MS&AD Insurance Group Holdings (JP) – estimated EPS 315.71, +5.7% Y/Y; Revenue 5 288 930 mln.

Good luck Champs!

Mr Hawk

DISCLAIMER: This material was created for informational purposes only and represents the Land of Trading team’s view of the past and current economic and capital market environment. It is not an investment advice and should not be viewed that way at all, and the creators of this material cannot be held liable for any potential losses resulting from trading, where despite this disclaimer someone would consider this material as an investment advice. All rights reserved ©2016. Contact: landoftradingATgmail.com

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Stocks - Q2 Earnings note – Week 4

Q2 Earnings – Week 4

By the end of the last week 314 out of S&P 500 companies reported what gives us a pretty decent overview of how the companies and economy is doing. The overall expectations declined as more companies from real economy and consumer staples reported. A sort of mirror view of the US economy in the form of Q2 GDP miss just underscored the real situation on Friday. Actually, the worse Advance Q2 GDP figure was a bit of surprise as the US data of late would point to +2.6% growth while the actual number was +1.2% only. At the same time the final Q1 was revised down to +0.8% from +1.1%. In other words the US GDP rose less than 2% over the past three quarters. The revenue of US companies is slightly higher, EPS stay negative while their EU peers reported even gloomier picture with both revenue and EPS declines.

Last Week

Caterpillar Inc – its results pointed to lower global demand for its products, thus indicating that world economy has still some bumps ahead.

As mentioned last week, consumer names face some headwinds and despite the better headline figures from McDonald’s, the closer look revealed some issues.

Ford Motor Co – as the market was checking on North American sales that were strong in Q1 and good results from Europe, we learnt from the CEO that the US market is still under pressure and company may have difficulties to keep up with its plans and forward guidance.

The tech giants Alphabet Inc, Amazon.com Inc and Facebook Inc briefed the market on their business model Brexit resistance, cloud business and web services. All of them beat the market expectations on internet services.

Apple Inc – the lower iPhone sales translated to lower revenue already 2^nd consecutive quarter but apparently, the company is gaining optimism on new smartphone cycle. Here, we should stay very cautious as Samsung and especially Chinese manufactures can offer the same if not better devices at much lower price.

Chevron Corp & Exxon Mobil Corp – the market was not expecting any deviation from industry trend on weaker commodity prices and both companies experienced the 20% decline in revenue, while Exxon also suffered the 60% fall in profits on y/y basis.

Enbridge (pipelines) and Imperial Oil (integrated refiner and oil producer) were hurt by wildfires what was seen in the earnings reports as well.

This Week

Well, after last week’s avalanche of earnings reports from big names we keep going with smaller companies despite more summer kind of mood everywhere.

The biotech or health care names will be watched from their valuation and regulatory perspective, especially in US in the light of upcoming US presidential elections (Obamacare).

EU banks – not only Italian banks but the whole Eurozone banking system that is still under stress will catch some attention of market even after Friday’s stress results. There are also signs of some issues with USD funding of EU banking system appearing.

One would think that ECB is helping banks by providing them liquidity and buying bonds but on the other hand all the liquidity provisions are being sterilized via other channels and keeping the interest rates extremely low is not helping the banks at all as it bites into their profitability.

Let’s see how it goes….check the below:

Monday

Heineken Holding NV (NL) – estimated EPS 3.34, +15.0% Y/Y; Revenue 21 225 mln

Loews Corp – estimated EPS 0.57, +26.9% Y/Y; Revenue … mln

Veolia Environment SA (F) – estimated EPS 0.51, +9.9% Y/Y; Revenue 11 952 mln

Tuesday

BMW AG (DE) – estimated EPS 2.67, +0.6% Y/Y; Revenue 24 552 mln

In case of BMW the German precision and technology combined with Italian kind of emotions is still perfectly working. But really is? The emerging markets (especially China) are still strong as Daimler-Chrysler showed.

Ferrari NV (IT) – estimated EPS 0.44, …% Y/Y; Revenue 773 mln

Tuesday

CVS Health Corp – estimated EPS 1.30, +6.8% Y/Y; Revenue 44 281 mln

METRO AG (DE) – estimated EPS 0.19, +272.0% Y/Y; Revenue 13 816 mln

Procter & Gamble Co – estimated EPS 0.75, -25.5% Y/Y; Revenue 15 832 mln

The market will be interested in seeing how the company copes with its product portfolio vs cost cutting.

Saputo Inc (CA) – estimated EPS 0.40, +18.5% Y/Y; Revenue 2 662 mln

American International Group Inc – estimated EPS 0.92, -33.7% Y/Y; Revenue 13 217 mln

The recent market volatility and lower investments in hedge funds will definitely leave a print on earnings.

Intesa Sanpaolo SpA (IT) – estimated EPS 0.04, -39.0% Y/Y; Revenue 4 034 mln

The results may brief us on the situation in Italian banking sector coping with excessive amount of troubled loans. For those looking at having an exposure to European banks that are trading at lowest levels in more than two decades, of course after considering all the risks even after stress test results, the better option in Italy may be Unicredit.

Pfizer Inc – estimated EPS 0.62, +11.1% Y/Y; Revenue 13 005 mln

The investors will check the comments on unfinished merger with Allergan Inc and the cash flow from off patent drugs.

Deutsche Lufthansa AG (DE) – estimated EPS 0.69, -42.2% Y/Y; Revenue 8 167 mln

Mitsubishi Corp (JP) – estimated EPS 40.46, -12.6% Y/Y; Revenue 1 734 520 mln

Wednesday

Continental AG (DE) – estimated EPS 4.10, -2.7% Y/Y; Revenue 10 534 mln

Tesla Motors Inc – estimated EPS -0.56, -16.7% Y/Y; Revenue 1 647 mln

For more on Tesla and SolarCity you can check our Trade idea: http://landoftrading.blogspot.sk/2016/07/trade-idea-tesla-short.html

Twenty-First Century Fox Inc – estimated EPS 0.37, -5.4% Y/Y; Revenue 6 683 mln

Tesoro Corp – estimated EPS 1.76, -61.8% Y/Y; Revenue 6 146 mln

AXA SA (FR) – estimated EPS 1.08, -10.4% Y/Y; Revenue … mln

HSBC Holdings PLC (GB) – estimated EPS 0.13, -45.7% Y/Y; Revenue 13 602 mln

ING Groep NV (NL) – estimated EPS 0.28, -10.8% Y/Y; Revenue 4 214 mln

Komercni Banka a.s. (CZ) – estimated EPS 14.16, -15.5% Y/Y; Revenue 8 076 mln

May be a nice exposure to CEE region via bank name. Komerni Banka is a traditional retail bank from Czech Republic offering complete services to retail or corporate clients.

MetLife Inc – estimated EPS 1.35, -13.3% Y/Y; Revenue 17 266 mln

Societe Generale SA (FR) – estimated EPS 1.18, -27.9% Y/Y; Revenue 6 777 mln

Standard Chartered PLC (GB) – estimated EPS 0.29, -41.0% Y/Y; Revenue 6 697 mln

Unicredit SpA (IT) – estimated EPS 0.13, +9.6% Y/Y; Revenue 5 714 mln

Check the comment at Intesa Sanpaolo SpA above (Tuesday).

Humana Inc – estimated EPS 2.22, +33.2% Y/Y; Revenue 13 594 mln

First Solar Inc – estimated EPS 0.54, +5.1% Y/Y; Revenue 869 mln

Check the comment for more at Tesla above (Wednesday)

Rio Tinto PLC (GB) – estimated EPS 0.80, -49.6% Y/Y; Revenue 16 520 mln

Thursday

Toyota Motor Corp (JP) – estimated EPS 145.46, -29.2% Y/Y; Revenue 6 583 510 mln

Kraft Heinz Co – estimated EPS 0.72, +17.3% Y/Y; Revenue 6 802 mln

Manulife Financial Corp (CA) – estimated EPS 0.46, +4.5% Y/Y; Revenue 12 158 mln

Merck KGaA (DE) – estimated EPS 1.52, +17.2% Y/Y; Revenue 3 817 mln

LinkedIn Corp – estimated EPS 0.78, +41.82% Y/Y; Revenue 898 mln

The acquisition from Microsoft and especially rising demand for hiring services will be of interest.

Nokia OYJ (FI) – estimated EPS 0.04, -64.3% Y/Y; Revenue 5 872 mln

The company once the leader of the segment now benefits from extensive portfolio of patents that brings a steady cash flow and its corporate business.

BCE Inc (CA) – estimated EPS 0.91, +4.7% Y/Y; Revenue 5 383 mln

Bell Canada is the largest telecommunication company in Canada that will provide us with an insight on how this sector performs in maple leaf country.

Duke Energy Corp – estimated EPS 1.01, +6.2% Y/Y; Revenue 5 682 mln

Friday

Magna International Inc (CA) – estimated EPS 1.34, +4.1% Y/Y; Revenue 9 217 mln

Allianz SE (DE) – estimated EPS 3.60, -20.8% Y/Y; Revenue 28 218 mln

Power Corp of Canada (CA) – estimated EPS 0.74, -19.2% Y/Y; Revenue … mln

For those who search for a Berkshire Hathaway kind of diversified across many sectors company focussing on finding the value deals, this Canadian peer to Warren Buffet’s imperium may be a good choice.

Royal Bank of Scotland Group PLC (GB) – estimated EPS 0.05, -62.2% Y/Y; Revenue 3 055 mln

Novo Nordisk A/S (DK) – estimated EPS 3.88, +20.0% Y/Y; Revenue 28 360 mln

Bombardier Inc (CA) – estimated EPS -0.03, -153.3% Y/Y; Revenue 4 183 mln

A short of cash company that had troubles to finalize their CSeries jets will be under the scrutiny of the market especially, after receiving a hand from Province of Quebec. The green light for CS 300 jets was awarded, so let’s see how they can fly…

LafargeHolcim Ltd (CH) – estimated EPS 0.82, -46.2% Y/Y; Revenue 7 622 mln

The results of the merger company having a significant market share in producing construction materials can give us some hints on how the construction business in Europe looks like.

Good luck Champs!

Mr Hawk

DISCLAIMER: This material was created for informational purposes only and represents the Land of Trading team’s view of the past and current economic and capital market environment. It is not an investment advice and should not be viewed that way at all, and the creators of this material cannot be held liable for any potential losses resulting from trading, where despite this disclaimer someone would consider this material as an investment advice. All rights reserved ©2016. Contact: landoftradingATgmail.com

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Stocks - Q2 Earnings Note

Q2 Earnings

Traditionally, Alcoa starts on Monday after market, followed by other important names later this week. Estimated EPS 0.09 and -51.1 Y/Y, Revenue 5.271.

Yum! Brands reporting on Wednesday (estimated EPS 0.74 and 7.2 Y/Y, Revenue 2.695).

CSX Corp reporting on Wednesday after market (estimated EPS 0.44 and -20.9 Y/Y, Revenue 3.099).

Delta Airlines reporting on Thursday (estimated EPS 1.48 and 16.5 Y/Y, Revenue 10.499). Suffered from higher oil prices but check the valuation multiples, as their levels may be interesting. Also weekly chart worth of being reviewed.

BlackRock reporting on Thursday before market (estimated EPS 4.8 and -3.3 Y/Y, Revenue 2.791). The results with company guidance can shed some light on how the shift from active fund management of mutual & hedge funds to passive vehicles like ETFs or managed ETF portfolios impacts the entire wealth management sector. As Fintech is biting more and more, many wealth managers are looking at cheaper options for their clients, as some active asset managers struggle to generate enough alpha to justify their fees.

US Bancorp reporting on Friday before market (estimated EPS 0.81 and 0.8 Y/Y, Revenue 5.196)

…but those of high importance are:

JPMorgan Chase Inc reporting on Thursday (estimated EPS 1.44 and -3.7 Y/Y, Revenue 24.416). Not only earnings will be reviewed but also the impact of Brexit vote, as they have substantial operations in UK (most employees from all US banks present in UK), and any need for reshuffling the structure and/or moves some activities to continental Europe after UK exit. Definitely, a market mover for other bank stocks as well.

Wells Fargo & Co reporting on Friday (estimated EPS 1.01 and -1.5 Y/Y, Revenue 22.248). As it is the number 3 by assets in US, company results will be scrutinized from retail perspective. The mortgage and lending business can do well due to low long-term interest rates that support refinancing.

Citigroup Inc reporting on Friday (estimated EPS 1.13 and -22.3 Y/Y, Revenue 17.723). Along with JPMorgan Chase there will be some question marks related to Brexit vote and the market will also review the profitability of their global business model, as the activity in EM was not spectacular. Citigroup has the most business of US banks coming from abroad, thus is more vulnerable to international developments.

Good luck Champs!

Mr Hawk

 DISCLAIMER: This material was created for informational purposes only and represents the Land of Trading       teams view on past and current economic and capital market environment. It is not and shouldn´t been viewed   as an investment advice and the creator of this material shouldn´t been hold liable for any loss resulting from       action where despite this disclaimer someone would consider this  material  as an investment advice. 

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