Earnings Reports Due From Alphabet, Disney, GM, Twitter

Here’s your weekly Investing Action Plan: what you need to know as an investor for the coming week. Earnings reports slow down but heavy hitters like Alphabet (GOOGL), Disney (DIS), Twitter (TWTR) and General Motors (GM) are due. Top cybersecurity, biotech and software stocks are also going to report earnings.


Stocks To Watch

Tableau (DATA), HubSpot (HUBS), Adobe (ADBE), Salesforce (CRM) and Elastic (ESTC) are five top software stocks in or near buy range with earnings on the horizon.

Tableau is 1.1% below a 131.92 buy point from an early-stage consolidation. The database software firm found support at the 50-day line has it built the base. With Tableau earnings due Tuesday, look to see if the stock can manage a heavy-volume breakout if results impress. And if the relative strength line hits new high ground, that would be a confirming indicator. The relative strength line measures price performance vs. the S&P 500.

HubSpot broke out Friday and is 0.6% above a handle entry at 158.76. The enterprise software company is also trading just below its all-time high of 162.20 reached in mid-September. Even though the stock has not yet hit a new high, the relative strength line is at fresh highs, which is bullish.

Adobe is 1.4% below a handle buy point of 250.78 within a double-bottom formation. But the handle of the design software leader is only slightly above the midpoint of the base, and recent resistance around the 200-day line isn’t positive. The stock reversed lower Friday, underscoring resistance at the 250 price level.

Salesforce is forming a handle too, but this one looks better. The stock is 1.6% above the 153.37 entry. Volume on the breakout was lighter than average, which is not ideal. But the enterprise software giant’s relative strength line is hitting a new high, even with Salesforce stock still below its all-time high reached in September. That’s a bullish sign.

October IPO Elastic, in the database software industry group, is 4.4% above an 83.94 buy point from a cup-shaped base. Elastic stock didn’t have a successful breakout from its IPO base, but shares rose nearly 12% this past week. That puts Elastic stock now 144% above its IPO price of 36.

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Alphabet Closes Out FANG Earnings Reports

The Google parent reports Q4 earnings late Monday. Analysts estimate 12% EPS growth to $10.86, with revenue jumping 20.6% to $38.98 billion. Aside from the outlook for Google’s core search-driven advertising business, analysts may seek an update on its cloud computing strategy. Google in January brought in a new leader for its cloud computing unit, which has struggled in the corporate market. Google’s traffic acquisition costs, or TAC, for internet search will be a closely-watched metric.

Disney Leads Media Earnings Reports

When the entertainment giant reports Tuesday after the close, analysts expect EPS to fall 17% to $1.57 as revenue dips 1% to $15.182 billion. Bolstering Disney’s studio segment are the holiday releases “Mary Poppins Returns,” which has grossed $319.5 million worldwide, and “Ralph Breaks The Internet,” which grossed $473.4 million. Watch for any new details on Disney’s upcoming video streaming service, Disney+, which is set to debut later this year.

Big Data Earnings Reports Worth Analyzing

Data analytics software maker Tableau Software (DATA) reports late Tuesday and is expected to swing to a loss of 8 cents a share, vs. a 12-cent per-share profit a year earlier, as revenue climbs 11% to $276 million. Tableau is transitioning to subscription revenue from license and service maintenance. Zendesk (ZEN) reports Q3 earnings late Tuesday. Analysts expect the maker of customer-support and sales-automation software to swing to a 3-cent per-share profit from a 1-cent per-share loss a year earlier. Revenue is expected to jump 34% to $165.6 million. Analysts will look for an update on the integration of recently acquired FutureSimple. NewRelic (NEWR) reports late Wednesday.

Top Cybersecurity Stocks On Deck

Fortinet (FTNT) reports late Wednesday, and EPS is seen surging 59% to 51 cents as revenue climbs 19% to $496 million. FireEye (FEYE) also reports late Wednesday, and EPS is expected to shoot up to 5 cents from 1 cent a year ago, as revenue increases 7.4% to $217 million. VeriSign (VRSN) reports late Thursday, and EPS is seen up 26% to $1.21 as revenue rises 4% to $308 million.

More Social Media Earnings Reports

Twitter reports before the market open Thursday, and Wall Street is looking for EPS to climb 32% to 25 cents, on revenue of $869.5 million up 19%. Twitter, in late October, reported better-than-expected earnings for the third quarter. Twitter stock jumped 15% that day. Snap (SNAP) reports after the market close Tuesday. The consensus is for a loss of 8 cents per share, on revenue of $375.8 million, up 31%.

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Top Health Insurer Due Up

Centene (CNC), the Medicaid and ObamaCare-focused insurer, reports before the open on Tuesday. Wall Street expects EPS to grow 37% to $1.33, as revenue expands 27% to $16.2 billion. Centene may comment on a controversial Trump administration proposal that could roil ObamaCare exchanges in 2020, raising the out-of-pocket cost for a bronze plan by as much as $1,000. Centene continues to be ranked No. 1 by IBD in the Medical-Managed Care industry group.

More Biotech Earnings Reports

Early Monday, analysts expect Alexion (ALXN) to report a 23.6% EPS gain to $1.83 as sales rise 16.5% to $1.06 billion. Late Tuesday, the consensus is for Vertex (VRTX) to earn $1.05 a share, up 72%, on $819 million in sales, up 26%. Early Wednesday, Regeneron (REGN) is expected to record an 8.8% EPS rise to $5.69 as sales grow 8% to $1.71 billion. Gilead Sciences (GILD) is set to report late Monday.

Top Workforce Stocks To Report

Cloud-based workplace-management software providers Paycom Software (PAYC) and Paylocity (PCTY) report earnings on Tuesday and Wednesday, respectively. Paycom has drawn interest from bigger customers. Paylocity in December said it was “still seeing a positive hiring environment within its client base,” a William Blair analyst said in a research note. Wall Street expects Paycom’s Q4 EPS to nearly double to 56 cents, with sales up 26% to $144 million. Analysts expect Paylocity to grow fiscal Q2 EPS by 44% to 23 cents, with revenue climbing 22% to $105 million.

GM Wraps Up Carmaker Earnings Reports

The No. 1 U.S. automaker reports Wednesday before the open, and EPS is expected to plunge 27% to $1.21 as revenue dips 3% to $36.4 billion. Automakers struggled with falling sales, higher material costs, trade wars and tariffs, and currency headwinds last year. In November, GM announced it’s cutting thousands of workers and idling five plants, drawing an angry backlash from lawmakers. The automaker now sees a profitable 2019 as its transformation strategy saves $2 billion-$2.5 billion in costs. Fiat Chrysler (FCAU) earnings follow on Thursday.

Match Results Due Amid Peak Season

The owner of mobile dating app Tinder and many online dating websites reports Q4 earnings late Wednesday, and EPS is forecast to jump 111% to 38 cents, with revenue rising 18% to $448 million. Tinder’s growth trajectory will be a key earnings call topic. One lingering concern is that Facebook (FB) could launch a competing mobile dating service. Another is that rival Bumble may launch an IPO. The period between Christmas and Valentine’s Day is typically Match Group‘s (MTCH) peak season. IAC (IAC), which owns Match and Angi Homeservices (ANGI), reports earnings late Thursday. IAC’s EPS is expected to fall 28% to $1.01, with revenue rising 12.5% to $1.07 billion. IAC’s other assets include Vimeo and search engine Ask.com.

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Restaurant Earnings Reports

Chipotle Mexican Grill (CMG) reports Q4 earnings Wednesday. Wall Street expects EPS to stay flat at $1.34 as revenue climbs 7% to $1.19 billion. KFC and Taco Bell parent Yum Brands (YUM) reports before the open Thursday. Analysts expect EPS to tick up 1% to 97 cents as revenue also swells 1% to $1.59 billion. Finally, Dunkin’ Donuts parent Dunkin’ Brands (DNKN) also reports Q4 results before the open Thursday.

Other Earnings

WWE (WWE) reports Q4 results Thursday. EPS is seen rocketing 52% to 32 cents as revenue jumps 19% to $253 million.

Boston Scientific (BSX) reports Wednesday and EPS is expected to grew 8.8% to 37 cents as sales rise 6.2% to $2.56 billion.

Microchip Technology (MCHP) reports Thursday. Wall Street sees EPS up 16% to $1.58 on sales of $1.41 billion, up 41%.

Fiserv (FISV) reports Thursday. Wall Street expects EPS up 18% to 84 cents on revenue of $1.549 billion, up 2%.

iRobot (IRBT) reports Wednesday. Analysts expect the Roomba vacuum-cleaner maker’s EPS to soar 213% to 50 cents on sales of $381 million, up 17%.

O’Reilly Automotive (ORLY) reports Wednesday, and EPS is seen up 29% to $3.75 as sales increase 6% to $2.33 billion.

Lumentum (LITE) reports fiscal Q2 earnings Tuesday. Analysts expect EPS to fall 30% to $1.16, with revenue decreasing 11% to $404.6 million.


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