2015’s first quarter earnings season is coming to an end with only a handful of notable earnings reports slated to be announced this week. Here’s what investors should look for in Ambarella Inc (NASDAQ:AMBA), Dollar General Corp. (NYSE:DG), and Medtronic PLC (NYSE:MDT).
Ambarella Inc:
Ambarella will report its first quarter fiscal 2016 earnings results on Tuesday, June 2 after market close. The company is expected to post earnings of $0.58 a share and $67 million in revenue, up from $0.25 earnings per share and $40.92 million in revenue from the same quarter last year.
The semiconductor company has done exceptionally well in 2015, having increased 77% year-to-date. GoPro is a big reason for Ambarella’s success, as the semiconductor company is the main provider of processors in GoPro cameras, a market leading product. Ambarella’s chips allow GoPro cameras to take high-definition videos and pictures. In addition, Ambarella also provides processors for GoPro’s competitors, such as Chinese company Xiaomi.
Although Ambarella has done exceptionally well this year, the company’s shares are currently overvalued at 45 times its value, last closing at $90.21 on Friday, May 29.’
On average, the top analyst consensus for Ambarella on TipRanks is Moderate Buy.
Dollar General Corp.:
Dollar General is slated to announce its first quarter 2015 earnings results on Tuesday, June 2 before the market opens. Analysts expect the company to post earnings of $0.82 a share and revenue of $4.94 billion, up from $0.72 earnings per share and $4.52 billion in revenue the same quarter a year prior.
Dollar General recently promoted COO Todd Vasos to CEO, effective July 3. Vasos has six years of experience working at Dollar General and has a strong background in merchandise. The company is confident Vasos is the best person to take on the role of CEO.
The company warned that West Coast port disruption may negatively impact its first-quarter fiscal 2015 earnings per share. Dollar General is also facing increasing gross margin pressure from a rise in sales of low margin carrying products.
Despite this, Dollar General has assured investors of its commitment to improve price management, cost control, private label offering, inventory management, and operational initiatives.
On average, the top analyst consensus for Dollar General on TipRanks is Moderate Buy.
Medtronic PLC:
Medtronic is set to announce its fourth quarter fiscal 2015 earnings results on Tuesday, June 2 before the market opens. Wall Street expects the company to post $1.11 earnings per share and $7.3 billion in revenue, down from $1.15 earnings per share and up from $4.47 billion in revenue year-over-year.
In January of this year, Medtronic completed the acquisition of Covidien for a total of $50 billion. This merger was the largest ever in the medtech industry and many believe it will lead to a powerhouse company that combines the wide-ranging and innovative skills of both Medtronic and Covidien.
Medtronic CFO Gary Ellis recently said that foreign exchange headwinds still took a toll in the first quarter, as it did with many other companies. He noted, “While recently the U.S. dollar has weakened, it is important to note that the foreign exchange rates in our fourth quarter were below the rates assumed in the outlook we forecast on our third-quarter earnings call in February.”
On average, the top analyst consensus for Medtronic on TipRanks is Hold.
