Earnings season is beginning to slow down, but Wall Street still has a busy week ahead as Alibaba Group Holding Ltd (NYSE:BABA), MannKind Corporation (NASDAQ:MNKD), Shake Shack Inc (NYSE:SHAK), and Cisco Systems, Inc. (NASDAQ:CSCO) are all slated to post their quarterly financial results. Here is what investors should look for.
Alibaba Group Holding Ltd
Alibaba will announce first quarter fiscal 2016 earnings results on Wednesday, August 12, before the market opens. The Street expects the company to post earnings of $0.58 per share on $3.4 billion in revenue.
The Chinese e-commerce giant has faced a variety of challenges recently that have narrowed the company’s margins, including accusations of selling fake merchandise. Alibaba has also been making large investments in entertainment, mobile platforms, and cloud computing. Lastly, Alibaba has suffered from the deteriorating Chinese economy.
Despite Alibaba’s recent struggles, Wall Street analysts have been trying to assure investors that there is nothing to worry about as the company has been investing in areas that will promote future growth.
Additionally, Alibaba recently announced that it will sell its U.S. e-commerce website, 11 Main, to rival e-commerce website, OpenSky, in exchange for 37.6% equity ownership. The company also revealed that it will feature 11 additional countries on Tmall Global, including the U.S., New Zealand, Australia, Switzerland, France, Britain, and Spain in an effort to expand its international e-commerce initiatives.
Out of 9 analysts polled by TipRanks within the past 3 months, all 9 are bullish on Alibaba. The average 12-month price target for Alibaba is $111.50, marking a 41.47% potential upside from where the stock last closed. On average, the all-analyst consensus for Alibaba is Strong Buy.
Biopharmaceutical company MannKind Corporation is slated to announce second quarter 2015 earnings results on Monday, August 10, before the market opens. The Street estimates the company will post a loss of ($0.08) per share on $250,000 in revenue. MannKind posted a loss of ($0.19) per share the same quarter a year prior.
MannKind’s earnings report will likely focus less on numbers and more on its pipeline drug, Afrezza, a rapid-acting inhalable insulin for adults with diabetes. Afrezza had a commercial launch earlier this year, which only raked in approximately $3 million.
Despite the poor numbers, investors are looking for updates associated with Afrezza. Many are curious if a change in the drug is the reason MannKind tripled its production capacity. With that said, there has been speculation that Afrezza has been approved by the European Medicines Agency, which will lead to a big increase in sales.
Out of 5 analysts polled by TipRanks within the past 3 months, 2 are bullish on MannKind, 2 are neutral, and 1 is bearish. The average 12-month price target for MannKind is $6.30, marking a 58.29% potential upside from where the stock last closed. On average, the all-analyst consensus for MannKind is Hold.
Shake Shack Inc
Famous hamburger chain Shake Shack is set to announce second quarter 2015 earnings on Monday, August 10, after market close. The street expects the company to post earnings of $0.03 per share on $42.8 million in revenue.
While Shake Shack has a very loyal following, strong brand recognition, and has exceeded earnings expectations over the past several quarters, its stock’s valuation has become increasingly high. As such, many investors have deemed Shake Shack shares to be too expensive.
Furthermore, Shake Shack is currently in its growth stage with the goal of opening 10 new locations in the United States, as well as more international locations. Many investors have questioned this growth strategy and have shied away from the stock as a result.
In more recent Shake Shack news, the hamburger chain recently announced a secondary offering in which the company will sell up to four million shares. Shake Shack says it will not receive any of the proceeds from the offering.
Out of 5 analysts polled by TipRanks within the past 3 months, 2 analysts are bearish on Shake Shack and 3 are neutral. The average 12-month price target for Shake Shack is $44.25, marking a 38.23% potential downside from where the stock last closed. On average, the all-analyst consensus for Shake Shack is Moderate Sell.
Cisco Systems, Inc.
Cisco Systems is scheduled to announce fourth quarter fiscal 2015 earnings results on Wednesday, August 12, after market close. The Street expects the company to post earnings of $0.56 per share on $12.65 billion in revenue, up from $0.55 earnings per share and $12.36 billion in revenue year-over-year.
Cisco’s earnings report will mark the first since Chuck Robbins took over the role of CEO from John Chambers. Chambers will remain on the board as executive chairman.
Additionally, investors expect Cisco to provide updates on cyber-security, its Invicta technology EoL (end of life), revenue from its set-top box business to Technicolor, and how it can be the leader in the Internet of Everything (IOE) market.
Cisco is also known to reward investors with a dividend of $0.21 per quarter for an annualized yield of 3%.
Out of 17 analysts polled by TipRanks in the last 3 months, 11 analysts are bullish on Cisco, 5 are neutral, and 1 is bearish. The average 12-month price target for Cisco is $32.72, marking a 16.23% potential upside from where the stock last closed. On average, the all-analyst consensus for Cisco Systems is Moderate Buy.