Wall Street has a busy week ahead with earnings from some of the most popular technology and entertainment stocks, including Tesla Motors Inc (NASDAQ:TSLA), Facebook Inc (NASDAQ:FB), Fitbit Inc (NYSE:FIT), and Walt Disney Co (NYSE:DIS). Find out what to watch for in each earnings report.
Tesla Motors Inc
Tesla will post third quarter earnings on Tuesday, November 3 after market close. Analysts estimate that the electric car company will post a loss of ($0.48) per share on revenue of $1.26 billion. This will mark a decrease in earnings from the $0.02 per share the company posted in the same quarter of last year due to heavy investments in the Model X, but a 36% year-over-year increase in revenue.
Analysts and investors will be looking for an updated figure on the Model X; Tesla’s new SUV. After several delays, the new model was revealed at the end of September though few have been delivered to customers. Many are concerned that the car’s intricacies, such as its falcon doors, make it hard to mass produce and difficult for consumers to become accustomed to. Analysts will also be looking for an update on Tesla’s Gigafactory; a lithium battery factory being constructed in Nevada that will enable Tesla to ramp production.
Tesla’s most recent estimates point to 50,000-55,000 car deliveries in 2015. The latest figures show that just over 33,000 have already been delivered, leaving management to account for how the remaining 17,000 vehicles will be delivered in the last quarter to reach the ambitious target.
Although Tesla is one of the most widely written and spoken about stocks, analysts have mixed views. According to the 19 analysts polled by TipRanks in the last 3 months, 8 analysts are bullish on Tesla, 4 are bearish, and 7 are staying on the sidelines. The average 12-month price target is $298.77, marking a 44% potential upside from where shares last closed.
Facebook will post third quarter results on Wednesday, November 4 after market close. Analysts expect the social media giant to post non-GAAP earnings per share of $0.52 on revenue of $4.36 billion, marking year-over-year increases of 21% and 36%, respectively.
Investors and analysts will be looking at growth in terms of MAUs, or monthly average users. In the previous quarter, Facebook posted a 13% growth in MAUs but analysts will not be surprised if this figure decelerates due to the law of large numbers as Facebook has more than 968 monthly active users. Analysts will also be looking for an increase in advertising revenue, specifically revenue derived from Instagram native advertising.
Aside from the metrics, analysts will also be looking for an update on Facebook’s enterprise segment, Facebook at Work, which recently added Royal Bank of Scotland to its platform. Lastly, keep an eye out for an update on Oculus; Facebook’s investment in virtual reality.
All 20 analysts polled by TipRanks in the last 3 months are bullish on Facebook; none are neutral or bearish. The average 12-month price target on the stock is $117.68, marking a 15% potential upside from where shares last closed.
Fitbit will post third quarter earnings on Monday, November 2 after market close. Analysts are expecting earnings of $0.10 per share on quarterly revenue of $350.97 million, marking a 130% year-over-year revenue increase.
The company pleasantly surprised investors in the previous quarter with strong earnings. This time around, investors hope to be surprised again with strong international growth. However, all are keeping an eye on rising competition from the likes of the Apple Watch and Jawbone. Furthermore, investors will likely be more interested in the company’s fourth quarter guidance as Fitbit aims to make itself to the top of everyone’s holidays shopping list. Wearable technology is quickly gaining popularity and investors hope that Fitbit will maintain its lead in the area.
According to the 14 analysts polled by TipRanks in the last 3 months, 10 are bullish on Fitbit and 4 are hanging on the sidelines. The average 12-month price target for the stock is $52, marking a 28% potential upside from current levels.
Walt Disney Co
Disney will post fiscal fourth quarter earnings on Thursday, November 5 after market close. Analysts expect the company to post earnings per share of $1.17, compared to $0.89 in the same quarter of last year.
Analysts will be looking at ESPN, the entertainment company’s largest media network. Though the network has strong margins, analysts worry about falling subscriber rates as consumers shift to bundle television packages, or drop large cable packages altogether. Disney’s second largest segment, Parks and Resorts, is also expected to perform well as the amusement parks continue to draw large crowds. Lastly, excitement surrounding the newest Star Wars film continues to build as the third movie in the trilogy is set to hit theaters next month.
According to the 19 analysts polled by TipRanks in the last 3 months, 10 are bullish on Disney while 9 are on the sidelines. The average 12-month price target for Disney is $117.53, marking only a 3% potential upside from where shares last closed.