Wall Street is in the thick of earnings season with Facebook Inc (NASDAQ:FB), Gilead Sciences, Inc. (NASDAQ:GILD), Twitter Inc (NYSE:TWTR), and LinkedIn Corp (NYSE:LNKD) all scheduled to report earnings this week. Here’s what investors need to know before earnings are posted:
Social media giant Facebook will post second quarter earnings on Wednesday, July 29, after market close. Analysts estimate that the company will post $0.47 earnings per share on $3.97 billion in revenue, marking potential year-over-year increases of 12% and 35%, respectively.
Although these figures are impressive, they mark decelerating growth from Facebook’s last reports. If analyst estimates are correct, Facebook’s upcoming report will mark the fifth quarter of decelerating growth. Analysts hope to see an increase in monthly active users, or MAUs, to combat the decelerating trends.
Analysts and investors are also looking for increased growth in online and mobile advertising. Last quarter saw a significant jump in mobile advertising, and analysts are wondering if this trend will continue. Although Facebook is a popular advertising for small and mid-size businesses, Facebook is hoping to attract large businesses to advertise with its 30-second videos.
Furthermore, Facebook is still in the processing of monetizing Instagram, its photo sharing social media platform, and investors are eager for this unlocked potential. Facebook investors are anticipating shares reaching $100 per share in the near future as the stock currently hovers around $96.
Out of the 21 analysts polled by TipRanks in the last 3 months, 20 are bullish on Facebook and 1 is neutral. The average 12-month price target on the stock is $101.95, marking a 5% potential upside from where the stock last closed.
Gilead Sciences will release second quarter earnings on Tuesday, July 28, after market close. Analysts estimate that the biopharmaceutical company will post earnings per share of $2.70 on $7.61 billion in revenue, up from $2.36 earnings per share on $6.53 billion in revenue from the same quarter of last year.
Analysts are expecting the continued success of Sovaldi and Harvoni, the company’s blockbuster hepatitis C treatments. Together, these two drugs make up more than half of Gilead’s revenue. Although these drugs face competition from AbbVie’s Viekira Pak, Gilead’s regimens have proven to be leaders in the field. In addition, analysts are expecting continued solid performance from Gilead’s HIV therapies.
There have been recent rumors, though none have been confirmed, that Gilead will make an offer to acquire Vertex Pharmaceuticals or another biotechnology company. This comes at a time when many large biotechnology companies have been merging in an effort to consolidate the rising costs of research, development, and bringing new drugs to market.
Out of the 12 analysts polled by TipRanks in the last 3 months, 12 are bullish on Gilead and 1 is neutral. The average 12-month price target on the stock is $126.50, marking a potential 12% upside from where the stock last closed.
Twitter will post earnings on Tuesday, July 28, after market close. The social media company is expected to post non-GAAP earnings per share of $0.04 on revenue of $481 million, in-line with the company’s guidance of revenue between $470 million and $485 million. In the same quarter of last year, the company posted earnings per share of $0.02 on revenue of $312 million.
In the last quarter, Twitter lowered its full-year 2015 guidance to between $2.17 billion and $2.27 billion. Analysts are looking to ensure that Twitter will maintain this guidance and not lower it for the second time.
Analysts are eager for Twitter to name a new CEO since Dick Costolo stepped down. Investors will look to the new CEO to reignite growth and new user rates. Twitter has posted decelerating growth rates for the past eight quarters, worrying analysts that the social media giant is losing its spark. Twitter has been unrolling new initiatives to make the platform more user-friendly and to keep users active on the website. Analysts are hopeful these efforts will have a positive impact on growth rates.
Out of the 19 analysts polled by TipRanks in the last 3 months, 10 are bullish on Twitter and 19 are neutral. The average 12-month price target for Twitter is $44, marking a 26% potential upside from where the stock is currently trading.
LinkedIn will post second quarter earnings on Thursday, July 30, after market close. Analysts expect he professional social networking website to post non-GAAP earnings per share of $0.30, marking a 41% year-over-year decrease. Analysts anticipate revenue of $680 million, marking a potential 28% year-over-year increase. This estimate is slightly higher than LinkedIn’s guidance of second quarter revenue between $670 million to $675 million.
LinkedIn shares are up more than 25% in the last 12 months, though shares are down 10% since the company released its last earnings report. Analysts will be looking for LinkedIn to maintain its full-year guidance of $2.9 billion in revenue and $1.90 non-GAAP earnings per share.
Out of the 22 analysts polled by TipRanks in the last 3 months, 19 are bullish on LinkedIn and 3 are neutral. The average 12-month price target on the stock is 255, marking a 14% increase from where shares last closed.