Analysts and investors have a lot to look forward to this week as earnings season rolls on. Here’s what you need to know ahead of earnings from Paypal Holdings Inc (NASDAQ:PYPL), GoPro Inc (NASDAQ:GPRO), and Gilead Sciences, Inc. (NASDAQ:GILD):
Paypal Holdings Inc
PayPal will announce third quarter earnings on Wednesday, October 28 after market close. For its first earnings report as a stand-alone company, analysts expect it to post earnings per share of $0.29 on revenue of $2.274 billion, compared to revenue of $1.95 billion in the same quarter of last year.
Some analysts claim management has set conservative estimates to give the company some leeway as it gains its footing as an independently traded entity. However analysts are optimistic and looking to several market opportunities for the company, such as mobile phone pay-as-you-go top ups and money transfers. Furthermore, analysts will be looking for closure of PayPal’s deal with Xoom. The $890 million acquisition is expected to bolster the company’s international presence.
According to the 18 analysts polled by TipRanks in the last 3 months, 11 are bullish on the payment platform, 3 are bearish, and 4 are neutral. The average 12-month price target for the stock is $40.47, marking a 15% potential increase from where shares last closed.
GoPro will post third quarter earnings on Wednesday, October 28 after market close. Analysts expect the company to post earnings of $0.30 on quarterly revenue of $438 million, compared to the same quarter of last year in which the company posted EPS of $0.12 on revenue of $280 million.
Shares fell nearly 40% in the quarter as analysts worry that the company will be unable to keep up growth rates. Even worse, some analysts have claimed that the company is a “one-hit wonder.” The steep drop throughout the quarter was partially attributed to Ambarella’s mixed second quarter earnings and weak guidance, which resulted in a GoPro sell-off since Ambarella produces chips for GoPro’s cameras.
GoPro bulls point to the long-term prospects of the company while bears are quick to note GoPro’s new Session camera, which has posted weak sales. However, GoPro revealed the Session in the second quarter while it usually brings new products to market in the third quarter. As a result, bulls are looking forward to the holiday shopping season ahead.
According to the 16 analysts polled by TipRanks in the last 3 months, 11 are bullish on GoPro while 5 are staying on the sidelines. The average 12-month price target is $57.92, marking a 99% potential upside from where shares last closed.
Gilead Sciences, Inc.
Gilead will release third quarter earnings on Tuesday, October 27 after market close. Analysts expect the biopharmaceutical company to post earnings of $2.87 on revenue of $7.8 billion. In the same quarter of last year, the company posted earnings of $1.84 on revenue of $6.04 billion.
Investors will be looking for sales growth in Gilead’s two blockbuster hepatitis C therapies; Sovaldi and Harvoni. These two drugs historically comprise more than half of Gilead’s revenue. Furthermore, investors are looking forward to a pipeline drug that combats all strains of hepatitis C. The therapy delivered positive trial results last month and Gilead aims to submit a New Drug Application in the fourth quarter.
Biotech bears continue to point to last month when the sector fell after presidential candidate Hillary Clinton took aim at inflated drug prices, pledging to combat high prescription drug prices if elected. However most assure that volatility within the sector is normal, and may be a bit exaggerated during a campaign cycle.
According to the 14 analysts polled by TipRanks in the last 3 months, 12 are bullish on Gilead while 2 are staying on the sidelines. The average 12-month price target is $128.75, marking a 19% potential upside from where shares last closed.