Earnings season is continuing to roll on with three big names reporting this week. What should investors be looking for?
Walt Disney Co (NYSE:DIS):
The Walt Disney Company is slated to announce its second quarter 2015 earnings results on Tuesday, May 5 after market close. Analysts expect the company to post $12.25 billion in revenue and earnings of $1.11 per share, up 5.1% and falling in-line with earnings from the same quarter a year prior, respectively.
Last quarter, Disney posted $1.27 earnings per share, up 23% from the same quarter a year prior. The House of Mouse posted $13.4 billion in revenue, marking a 9% year-over-year increase. In addition, Disney raked in $2.18 billion in profit, a 19% increase year-over-year.
Revenue from Walt Disney’s TV and cable ventures, including ABC Television Group and ESPN, are expected to be impacted by the recent switch from cable to online streaming. However, revenue from its Marvel and Starwars franchises will likely make up for it, particularly in the third quarter and full-year.
With that said, Disney’s recent theatrical release of Marvel’s Avengers: Age of Ultron brought in $27.3 million on its Thursday opening night, making it the sixth highest grossing Thursday debut.
On average, the top analyst consensus for The Walt Disney Company on TipRanks is Strong Buy.
Tesla Motors Inc (NASDAQ:TSLA):
Tesla Motors will post its first quarter 2015 earnings on Wednesday, May 6 after market close. The company is expected to post a loss of ($0.50) a share and $1.04 billion in revenue, down from $0.12 earnings per share but up almost 46% in revenue from the same quarter a year ago.
Tesla estimated an early delivery of 10,030 vehicles for the first quarter. If accurate, this would mark a significant growth of 6,457 from the same quarter last year. However, the company’s revenue has faced foreign currency headwinds in recent quarters and is expected to still have an effect in Q1. As a result, Tesla’s revenue growth will likely not match the percentage growth in vehicle deliveries.
In recent Tesla news, the automobile company announced on April 30 plans to enter the energy storage business by releasing a battery, known as Powerwall, that will provide energy to homes and buildings. Tesla CEO Elon Musk described the battery, stating “that [it] charges using electricity generated from solar panels, or when utility rates are low, and powers your home in the evening. It also fortifies your home against power outages by providing a backup electricity supply.”
On average, the top analyst consensus for Tesla on TipRanks is Moderate Buy.
Alibaba Group Holding Ltd (NYSE:BABA):
Alibaba Group is set to announce its fiscal fourth quarter earnings results on Thursday, May 7 before market open. The Chinese e-commerce giant is expected to post earnings of $0.44 a share and $2.78 billion in revenue.
In the last quarter, Alibaba had a 40% increase in revenue, bringing in a total of $4.22 billion. However, the company significantly missed analysts’ estimates of $4.45 billion. The e-commerce giant posted earnings of $0.81 per share on a non-GAAP basis.
Alibaba has not had the best 2015 thus far as the company was forced to defend itself the day after they released their 3Q15 earnings against Chinese authorities. The authorities claimed the company has not taken action against the sale of fake goods, bribery, and other illegal activities.
Alibaba is currently under a hiring freeze as CEO Jack Ma believes the company grew too quickly. Additionally, the company’s stock price is only slightly above its 52-week low.
On average, the top analyst consensus for Alibaba on TipRanks is Strong Buy.