U.S. markets moved sharply lower in early trading Monday, putting the market on track for its second sizable loss in a row. But the show must go on and the earnings season continues this week with reports from stock giants The Coca Cola Co (NYSE:KO), FireEye Inc (NASDAQ:FEYE), and SolarCity Corp (NASDAQ:SCTY).
SolarCity is set to release its Q4:2015 earnings on February 9 after market close. Analysts are expecting revenues of $105.62 million, compared to revenues of $71.81 million for the same quarter of last year, and a loss per share of ($2.59), compared to a loss of ($1.33) per share for the same quarter of last year. Investors are worried about this company as the stock fell since December due to unfavorable regulatory developments and demand concerns. However, some analysts are hopefully about the recently indicated monetization of some of the company’s operating portfolio, which could provide a good source of capital to fund growth. Despite bullish sentiment regarding the recent ITC tax credit extension, analysts are predicting a drop in this earnings report and will be paying special attention to 2016 guidance.
According to TipRanks’ statistics, out of the 9 analysts who have rated the company in the past 3 months, 7 gave a Buy rating, 1 gave a Sell rating, and 1 remains on the sidelines. The average 12-month price target for the stock is $65.29, marking a 124% increase from current levels.
FireEye is set to release its Q4 earnings on February 11 before market open. Analysts are expecting revenues of $185.24 million, compared to revenues of $142.98 million for the same quarter of last year, and a loss per share of $0.37, compared to a loss of $0.38 per share for the same quarter of last year. In its preliminary q4 results, released a few weeks ago, the company posted revenues of $187 million and adjusted net loss per share of $0.37. The preliminary earnings also indicated high billings due to subscription, support, and professional services growth. Management also indicated that they expect 20% organic billings growth and a positive free cash flow.
Following this preliminary report, analyst Michael W. Kim of Imperial Capital maintained his outperform rating on the company though slashed his price target to $25 from $32 due to “comparable valuation” on January 22, 2016. However, he remains bullish on posted growth as “these metrics significantly exceed investor expectations….”
Similarly, analyst Shaul Eyal of Oppenheimer weighed in on the company reiterating an outperform rating on the stock with a $39 price target on February 2, 2016, believing the stock is trading at a discount. He is particularly bullish regarding the recent acquisition of security automation company Inovtas. This acquisition will help the company to better manage cyber security threats. He states, “By automating routine processes, the time required to contain and mitigate security incidents is reduced from days or weeks to minutes.”
According to TipRanks’ statistics, out of the 14 analysts who have rated the company in the past 3 months, 9 gave a Buy rating while 5 remain on the sidelines. The average 12-month price target for the stock is $27.21, marking a 120% upside from current levels.
The Coca Cola Co
Coca Cola is set to release earnings on Tuesday, February 9 before market open. Analysts are expecting revenues of $9.91 billion and earnings of $0.37 per share, compared to revenues of $10.9 billion and earnings of $0.44 per share from the same quarter of last year. For this report, analyst will be focused on the company’s continued strategic tactics and ways to cut costs, as well as advertising decisions which contributed to growth so far this fiscal year, expected to continue. Concerns include lagging carbonated soft drink sales as a result of market shift to increased health consciousness, expected to be reflected in the report. Related, analysts are looking for results regarding the company’s increased focus on juices and energy drinks.
Other concerns regarding the report include macro-economic difficulties in key emerging markets, where the company generates over half its revenue, such as Brazil, Russia, and China. Another factor impacting international profits is the strengthening U.S dollar. Finally, analysts expect a profit impact this quarter due to fewer selling days and increased marketing expenses.
According to TipRanks’ statistics, out of the 7 analysts who have rated the company in the past 3 months, 4 gave a Buy rating while 3 remain on the sidelines. The average 12-month price target for the stock is $46.50, marking an 11% upside from where shares last closed.