Wall Street is in the throes of earnings season as several major companies are scheduled to release reports this week. What should investors look for in those reports?
Chipotle Mexican Grill, Inc. (NYSE:CMG)
Chipotle will be releasing 1Q15 earnings after market close on April 21. The fast-casual Mexican food chain took the country by storm this year as it pioneered the customizable and convenient dining experience. Chipotle’s food source transparency has represented a shift in consumer taste for quality over price. Customers don’t seem to mind paying more to know what they are eating. However, investors are worried that rising food prices, particularly beef, will impact shares.
Analysts estimate that Chipotle will post earnings per share of $3.61, up from $2.64 in the same quarter last year but down from $3.84 last quarter. Chipotle is expected to post $1.11 billion in sales, up from $904 million in the same quarter last year and up from $1.07 billion last quarter. Investors have been excited about Chipotle’s growth, despite share prices falling 6% in February after Chipotle’s record-breaking fourth quarter earnings.
On average, the top analyst consensus for Chipotle on TipRanks is Moderate Buy.
Facebook Inc (NASDAQ:FB)
Facebook will be releasing 1Q15 earnings after market close on April 22. The social media giant has turned into an advertising powerhouse with over 2 million active advertisers on the website. Facebook expanded its Ads Manager application to increase accessibility and has slowly been integrating native advertisements onto Instagram, a photo-sharing platform owned by Facebook. However, some analysts are concerned about decelerated Facebook user growth. Some believe the website is losing popularity among teens, while others insist that decelerated growth in inevitable since so many people already use the website.
Analysts estimate that Facebook will post non-GAAP earnings per share of $0.40 for the quarter, up from $0.34 year-over-year but down from $0.54 last quarter. The analyst consensus for Facebook’s quarterly revenue is $3.56 billion, up from $2.5 billion in the same quarter last year but down from $3.85 billion last quarter.
On average, the top analyst consensus for Facebook on TipRanks is Strong Buy.
Microsoft Corporation (NASDAQ:MSFT)
Microsoft will release third quarter earnings for fiscal year 2015 after market close on April 23. Microsoft has been transitioning from a software company into a cloud based business, though analysts expect the declining PC market to continue to take a toll on earnings. Microsoft’s last quarterly report was generally lackluster due to a strong U.S. dollar while analysts were disappointed with the company’s decision to provide a free Windows 10 upgrade to those already using Windows 7 or 8.
Analysts estimate that Microsoft will post earnings per share of $0.51, down from $0.72 year-over-year, and down from $0.71 in the last quarter. The analyst consensus for Microsoft’s quarterly revenue is $21.12 billion, down from $26.5 billion year-over-year but up from $20.5 billion sequentially.
On average, the top analyst consensus for Microsoft on TipRanks is Hold.
Google Inc (NASDAQ:GOOG)
Google will be releasing 1Q15 earnings after market close on April 23. Google has been receiving some unwanted publicity as the European Union is accusing the search engine of violating antitrust regulations. Although Google has refuted this claim, it is unclear if the lawsuit will impact shares. Furthermore, Google’s CFO Patrick Pichette announced his retirement and he will be replaced by Ruth Porat, former CFO of Morgan Stanley. Analysts are anticipating strong currency headwinds to adversely impact Google’s earnings.
Analysts estimate that Google will post earnings per share of $5.38, up from $5.04 year-over-year, but down from $6.91 last quarter. Analysts’ estimates for Google’s quarterly revenue range from $13.55 billion to $17.52 billion, compared to $15.42 billion in the same quarter last year and last quarter’s revenue of $18.10 billion.
On average, the top analyst consensus for Google on TipRanks is Moderate Buy.