Oct 18, 2016 - Q3 Earnings - Week 2

Q3 Earnings - Week 2

Would you happen to have the feeling that the academics at Fed will not raise the rates in Dec and then the markets will lose any confidence it still may have, the investors and economy will get it the same way and everything will go down the hole ending up with a new full blown recession...?

…or is it just me?

Okay, let’s focus on earnings and try to figure out what will pretty high valuations and steadily declining earnings over the last few quarters will do to stock market in the above mentioned scenario.

This Week

Goldman Sachs Group Inc – a nice jump in bond trading helped to surprise the market

Wednesday

Genuine Parts Co – estimated EPS 1.28, +3.5% Y/Y; Revenue 4 022 mln

Halliburton Co – estimated EPS -0.07, -121.9% Y/Y; Revenue 3 901 mln

American Express Co – estimated EPS 0.96, -22.5% Y/Y; Revenue 7 697 mln

China Life Insurance Co Ltd (CN) – estimated EPS 0.05, -44.1% Y/Y; Revenue … mln

Morgan Stanley – estimated EPS 0.63, +84.6% Y/Y; Revenue 8 149 mln

US Bancorp – estimated EPS 0.83, +4.3% Y/Y; Revenue 5 347 mln

Abbott Laboratories – estimated EPS 0.58, +8.0% Y/Y; Revenue 5 287 mln

Valeant Pharmaceuticals Int – estimated EPS 1.77, -35.5% Y/Y; Revenue 2 519 mln

eBay Inc – estimated EPS 0.44, +2.3% Y/Y; Revenue 2 186 mln

Thursday

Walgreens Boots Aliance Inc – estimated EPS 0.99, +12.5% Y/Y; Revenue 29 084 mln

Schlumberger Ltd – estimated EPS 0.22, -71.4% Y/Y; Revenue 7 105 mln

Bank of New York Mellon – estimated EPS 0.81, +9.3% Y/Y; Revenue 3 862 mln

China Construction Bank Corp – estimated EPS 0.23, -4.2% Y/Y; Revenue … mln

E*TRADE Financial Corp – estimated EPS 0.39, +17.6% Y/Y; Revenue 472 mln

Travelers Cos – estimated EPS 2.33, -20.6% Y/Y; Revenue 6 870 mln

American Airlines Group – estimated EPS 1.69, -39.0% Y/Y; Revenue 10 534 mln

Union Pacific Corp – estimated EPS 1.40, -6.5% Y/Y; Revenue 5 163 mln

Vinci SA (FR) – estimated EPS 2.41, +5.3% Y/Y; Revenue 20 184 mln

Microsoft Inc – estimated EPS 0.68, +1.8% Y/Y; Revenue 21 698 mln

China Mobile Ltd (CN) – estimated EPS 1.48, …% Y/Y; Revenue 189 366 mln

Rogers Communications Inc (CA) – estimated EPS 0.87, -4.1% Y/Y; Revenue 3 448 mln

Verizon Communications Inc – estimated EPS 0.99, -5.1% Y/Y; Revenue 31 128 mln

Friday

Daimler AG (GE) – estimated EPS 2.23, +3.1% Y/Y; Revenue 38 372 mln

Kia Motors Corp (KR) – estimated EPS 1 566.06, +15.4% Y/Y; Revenue 12 643 981 mln

McDonald's Corp – estimated EPS .49, +6.1% Y/Y; Revenue 6 285 mln

Whirlpool Corp – estimated EPS 3.88, +12.4% Y/Y; Revenue 5 340 mln

General Electric Co – estimated EPS 0.30, +4.1% Y/Y; Revenue 29 645 mln

Honeywell International Inc – estimated EPS 1.62, +1.4% Y/Y; Revenue 9 840 mln

SAP SE (GE) – estimated EPS 0.95, -2.7% Y/Y; Revenue 5 301 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

Read More