Investors are anticipating this week’s expected earning releases from NVIDIA Corporation (NASDAQ:NVDA), SolarCity Corp (NASDAQ:SCTY) , Nokia Corp (ADR) (NYSE:NOK), and Walt Disney Co (NYSE:DIS). See how analysts are weighing in on these big-name stocks.
NVIDIA is set to release earnings on Thursday, May 12 after market close. For this quarter, analysts are expecting the company to post revenues of $1.27 billion and earnings of $0.32 per share, compared to revenues of $1.15 billion and earnings of $0.24 for the same quarter of last year. Although the company posted record revenues of $1.4 billion last year, this quarter could mark another earnings surprise given the launch of Facebook’s VR Oculus Rift Headset, released in late March, as well as other VR games. Although the company does not manufacture chips for the headset, it does make chips for computers which support VR, such as its NVIDIA GTX GPU, which gamers prefer over competitor’s.
For this quarter, investors are anticipating slowing growth in the company’s gaming segment, as the first 2 quarters of the year are typically slow for gaming. However, the company has over 50% market share in gaming chips. This expected slowing should be offset by the company’s data center and automotive segments, which investors expect to display impressive growth for the quarter.
Although investors are slightly concerned regarding the impact of the expiration of a licensing deal with fellow chip maker Intel in March 2017, the company’s market position and state of the art technologies are expected to attract similar deals. Related, a court decision for its patent lawsuit with Samsung could generate a new licensing deal which would offset revenue losses from Intel, although a decision has not yet been made. Investors are also expecting the company to report a reduction in free cash flow this quarter due to the $562 million worth of dividends and share buybacks between January and April.
According to TipRanks, out of all the analysts who have rated the company in the past 3 months, 41% are bullish while 59% remain on the sidelines. The average 12-month price target for the stock is $36.32, marking a 3% upside from where shares last closed.
Walt Disney Co
Walt Disney Company is expected to report Q2:16 earnings on Tuesday, May 10 after market close. The average analyst consensus for the upcoming quarter EPS is $1.39, and consensus for the current year at $5.86. For the same quarter last year, EPS was $1.27, and total earnings for the previous fiscal year was $5.08 per share. Analysts forecast the upcoming quarter revenue to be $14.8 billion, higher than the reported revenue for the same quarter last year of $13.4 billion.
Things look good for the media and entertainment enterprise giant, whose shares rose 11.5% over the course of last year. Disney released top films such as Zootopia and Jungle Book. Its latest release, Captain America: Civil War opened with $241 million before its U.S. premiere. Further, the much anticipated Star Wars: The Force Awakens, released earlier this year earned $899 million at the box office and over $1 billion internationally.
However, looking ahead, investors may be concerned regarding Disney’s cable behemoth ESPN, which has experienced decreasing subscriber counts. The company commented that higher programming costs along with the falling number of subscribers are contributing factors the 5% decline in the cable unit earnings. The user decline is not a new phenomenon for Disney, as ESPN has lost approximately 7 million out of its 99 million subscribers since 2013.
According to TipRanks, Walt Disney has a Moderate Buy consensus with 60% of analysts bullish on the stock, and 40% of analysts neutral. The average price target for DIS is $112.61 with an upside of 6.70%.
Nokia Corp (ADR)
Nokia Corporation is expected to report its Q1:2016 earnings on Tuesday, May 10 before market open. Analysts are expecting the newly combined company to post revenues of $6.24 billion compared to $3.60 billion for the same quarter of last year. The analyst forecast consensus for the company is an EPS of $0.04 for the upcoming quarter compared to earnings of $0.06 for the same quarter of last year.
The multinational communications and information technology company seems to be improving in its quarterly earnings. However, sales are expected to be rather modest in key markets such as China during the anticipated quarter due to currency fluctuations, which may impact the top line. Further, investors are speculating the Nokia Networks Segment will be subject to headwinds, likely leading to additional below-par sales.Investors are also pivoting their focus towards the company’s acquisition of Alcatel-Lucent in January, emphasizing the companies’ integration process and will be watching for other acquisition updates. Last month, the company indicated they would acquire Withing S.A for 170 million Euros in an attempt to enter the digital health market. The deal is expected to close later this year.
Investors are anticipating updates on the company’s key financial metrics such as its relatively favorable debt positioning, cash flow, and operating margins.
According to TipRanks, the average analyst consensus for NOK was Moderate Buy, with 58% of analysts offering a Buy recommendation and 42% offering a Hold recommendation on the stock. The average price target is $7.86 with a 38.62% upside.
Solar City Corporation is expected to report Q1:16 earnings on Monday, May 9 after market close. Analysts are expecting the company to post revenues of $108 million for the quarter and a net loss per share of $(2.31), compared to revenues of $67.48 million and a loss per share of $(0.22) for the same quarter of last year
The company is a well known provider of energy services dealing with solar power systems. SolarCity expects to grow its installations 18% year over year, but decrease 34% y/y to 180 megawatt. The decline is expected due to seasonal slowdown that was higher than usual, and the company’s decision to end its Nevada operations in December.
J.P. Morgan analyst Paul Coster forecasted the upcoming quarterly results noting, “The stock has rebounded from its mid-February lows, as the company demonstrated its ability to raise capital to fund growth, though not yet by enough to provide visibility in support of the 2016 MW guidance. We believe the earnings call will likely focus on the cost and availability of financing, including yesterday’s announced asset- monetization, but also on policy initiatives, including the company’s collaboration with utilities in NY regarding net metering. With the stock trading near our $29 price target, we believe risk-reward is balanced.” The analyst further mentioned he expects “volatility in the stock to remain elevated.” Coster reiterated a Hold rating on SCTY on May 5, 2016 with a $29.00 price target estimate.
Paul Coster has a 40% success rate with an average return of –7.9%.
According to TipRanks, SolarCity is ranked a Moderate Buy, with 57% of analysts bullish, 36% of analysts neutral, and only 7% of analysts bearish on the stock. The average price target for SCTY is $48.82 with a 123.53% upside.