Earnings season rolls on this week with several companies releasing earnings reports. Here’s what to watch for from Wal-Mart Stores, Inc. (NYSE:WMT), ReneSola Ltd. (ADR) (NYSE:SOL), JD.Com Inc (ADR) (NASDAQ:JD), and Bioline RX Ltd (NASDAQ:BLRX).
Wal-Mart Stores, Inc.
Wal-Mart is set to release its Q2 2016 earnings on Tuesday, November 17 before market open. Analysts anticipate earnings of $0.98 per share and revenues of $118 billion, a decrease from the $1.15 EPS and $119 billion in revenue the company posted in the same quarter of last year.
Analysts attribute these lower estimates to a variety of factors. First, shares of WMT plunged in October due to the company’s announcement of a $20 billion share buyback program and lower 2017 guidance due to heavy capital investment. Second, the company announced that it would invest more heavily in its staff through wage increases and better training, thus increasing costs. The company struggled with weak U.S. sales and lower e-commerce spending. Weak international sales and currency fluctuations also contributed to analysts’ weak outlook for the quarter .
The company faces stiff competition from other online retailers, as well as discount stores and local grocery stores, making it difficult for Wal-Mart to maintain its low prices. Last week, the company’s shares dropped even further when it announced a different Black Friday strategy, shortening its normal 5 day period to 1 day but offering deeper discounts.
According to TipRanks’ statistics, out of the 17 analysts who rated WMT in the past 3 months, 1 gave a Buy rating, 2 gave a Sell rating, and 14 remain on the sidelines. The average 12-month price target for WMT is $65.36, marking a 15.85% upside from where shares last closed.
ReneSola Ltd. (ADR)
ReneSola will announce its Q3 2015 earnings on Tuesday, November 17 before market open. Analysts estimate earnings of $0.02 per share and revenues of $340.2 million, beating last quarters’ loss per share of ($0.02) and $268.4 million in revenues.
The company made headlines in October for selling its UK-based 16.5 megawatt utility scale to Foresight Group, as part of the company’s strategy to move toward downstream development from original equipment manufacturing. The company has been working to decrease its global OEM capacity and increase its focus on these types of downstream projects to respond to increasing international demand for renewable energy. This strategy of developing downstream projects over 500 MW is intended to “generate cash flow and profitability in 2016 and further.”
Other highlights from this quarter include the significant decrease in short interest (2,659,396 shares in October compared to 4,287,260 shares in September) as well as the resignation of CFO Daniel Lee. Despite a 5.71% drop earlier this month, investors expect strong returns from both ReneSolar and Pristine Sun, as the two companies developed a joint venture, Baynergy. This JV will develop 300 MW of solar power plants in the U.S. Half of these plants are expected to be completed by the end of 2016.
According to TipRanks’ statistics, 1 analyst has rated ReneSola in the last 3 months with a Hold rating and a $1.16 price target, marking an 8% downside from where shares last closed.
JD.Com Inc (ADR)
JD.com is set to release Q3 2015 earnings on Monday, November 16 before market open. Analysts are expecting earnings of $0.09 per share and revenues of $44.30 billion.
Investors and analysts alike have bullish sentiments on the Chinese online retailer giant. Despite slowing Chinese economic growth, as well as a decrease in revenue gains for the past 3 quarters, some analysts believe that the company is a major competitor in the market with strong financial standing. The company’s strategy to increase long term growth, brand awareness, fulfillment capability, and merchandise volume factored into its favorable gross margins despite increased spending. Furthermore, the company has a leg up on its biggest competitor, Alibaba, due to its strong reputation from brands such as Nike, Apple, and Adidas amidst BABA’s recent counterfeit goods scandal.
Recently, the company reported record sales on China’s singles day, marking a 60% year over year increase in revenues. JD’s recent parnership with mobile company Tenecent holdings accounted for 74% of total orders on this day. These numbers prove that JD is one of the main players in China’s growing e-commerce market, and expects a large percentage of the $3 trillion dollar Chinese e-commerce industry. Overall, analysts believe that JD is one of the industry’s key players and that “robust growth should help mitigate weak macro-concerns.”
According to TipRanks’ statistics, out of the 5 analysts who have rated JD in the past 3 months, 4 have rated the stock as Buy while 1 analyst remains neutral. The average 12-month price target for JD is $34.50, marking a 29% upside from where shares last closed.
Bioline RX Ltd
Bioline RX is expected to release Q3 earnings on Monday, November 16 before market open. Analysts estimate a loss of ($0.08) per share, compared to a loss of ($0.09) last quarter. On November 5, shares spiked 6% after the company announced successful Phase 2 trials of BL-8040; a pipeline drug intended to treat relapsed or refractory acute myloid leukemia. The study showed that BL-8040, in combination with Cytarabine, was safe and well-tolerated by patients. The company also plans to continue collaborating with Novartis, an Israeli pharmaceutical company, “to co-develop a number of pre-clinical and early clinical therapeutic projects.”
According to TipRanks’ statistics, out of the 2 analysts who rated BLRX in the last 3 months, both have rated the stock as Buy. The average 12-month price target for BLRX is $4,00, marking a 207.69% upside from where shares last closed.