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
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
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