As we enter the second week of August 2024, investors are gearing up for a busy earnings season. This week features reports from major players across various sectors, including technology, entertainment, healthcare, and real estate. Here's a breakdown of some notable companies reporting and what investors should keep an eye on:
Monday, August 5th
Hims & Hers (HERS) - ★★★★
Ranked #15 in Q3 2024 SMID Cap Equity Rankings
Earnings per share (EPS) estimate: $0.04
Key Things To Watch: Look for user growth and retention rates in their telehealth services.
Innovative Industrial Properties (IIPR) - ★★★★
Ranked #21 in Q3 2024 SMID Cap Equity Rankings
Earnings per share (EPS) estimate: $2.02
Key Things To Watch: Focus on occupancy rates and new property acquisitions in the cannabis real estate sector.
Simon Property Group (SPG) - ★★★★
Ranked #26 in Q3 2024 Large Cap Equity Rankings
Earnings per share (EPS) estimate: $2.95
Key Things To Watch: Pay attention to mall occupancy rates and rental income trends.
Carlyle Group (CG) - ★★★★
Ranked #34 in Q3 2024 SMID Cap Equity Rankings
Earnings per share (EPS) estimate: $0.83
Key Things To Watch: Assets under management, fee related revenue and investment performance
Tuesday, August 6th
Fox Corporation (FOXA) - ★★★
Ranked #54 in Q3 2024 SMID Cap Equity Rankings
Earnings per share (EPS) estimate: $0.81
Key Things To Watch: Ad revenue trends, especially in news and sports segments, Streaming subscriber growth for Tubi, Impact of cord-cutting on cable network revenues
TPG (TPG) - ★★★★★
Ranked #4 in Q3 2024 SMID Cap Equity Rankings
Earnings per share (EPS) estimate: $0.43
Key Things To Watch: Assets Under Management (AUM) growth, Fund performance metrics (IRR, MOIC), New fund launches and capital raised
Uber Technologies (UBER) - ★★★
Ranked #82 in Q3 2024 Large Cap Equity Rankings
Earnings per share (EPS) estimate: $0.31
Key Things To Watch: Gross bookings and trips growth, Profitability metrics for ride-sharing and Uber Eats, Updates on autonomous vehicle initiatives
Instacart (CART) - ★★
Ranked #80 in Q3 2024 SMID Cap Equity Rankings
Earnings per share (EPS) estimate: $0.13
Key Things To Watch: Gross Merchandise Value (GMV) growth, Active user metrics and customer retention rates, Progress in advertising revenue
Rivian (RIVN) - ★★
Ranked #70 in Q3 2024 SMID Cap Equity Rankings
Earnings per share (EPS) estimate: -$1.24
Key Things To Watch: Vehicle production and delivery numbers, Updates on new model launches, Progress towards profitability
Toast (TOST) - ★★★★
Ranked #23 in Q3 2024 SMID Cap Equity Rankings
Earnings per share (EPS) estimate: $0.11
Key Things To Watch: Gross Payment Volume (GPV) growth, Net revenue retention rate, New customer acquisition in the restaurant industry
Wynn Resorts (WYNN) - ★★★★
Ranked #22 in Q3 2024 SMID Cap Equity Rankings
Earnings per share (EPS) estimate: $1.14
Key Things To Watch: Macau operations recovery, Las Vegas property performance, Updates on potential online gaming initiatives
Wednesday, August 7th
Disney (DIS) - ★★★★
Ranked #49 in Q3 2024 Large Cap Equity Rankings
Earnings per share (EPS) estimate: $1.19
Key Things To Watch: Disney+ subscriber growth and churn rates, Theme park attendance and revenue, Box office performance and upcoming film slate.
CVS Health (CVS) - ★★★
Ranked #78 in Q3 2024 Large Cap Equity Rankings
Earnings per share (EPS) estimate: $1.73
Key Things To Watch: Pharmacy sales trends, Progress in healthcare services expansion, Impact of drug pricing reforms
Lyft (LYFT) - ★★★
Ranked #52 in Q3 2024 SMID Cap Equity Rankings
Earnings per share (EPS) estimate: $0.16
Key Things To Watch: Active riders and revenue per active rider, Driver supply and incentive costs, Progress towards profitability goals
New York Times (NYT) - ★★★★
Ranked #17 in Q3 2024 SMID Cap Equity Rankings
Earnings per share (EPS) estimate: $0.41
Key Things To Watch: Digital subscription growth, Advertising revenue trends, Progress in diversification efforts (e.g., games, audio)
Shopify (SHOP) - ★★★★
Ranked #10 in Q3 2024 Large Cap Equity Rankings
Earnings per share (EPS) estimate: $0.20
Key Things To Watch: Gross Merchandise Volume (GMV) growth, Merchant acquisition and retention rates, Updates on fulfillment network expansion
Wix.com (WIX) - ★★★★★
Ranked #3 in Q3 2024 SMID Cap Equity Rankings
Earnings per share (EPS) estimate: $1.35
Key Things To Watch: Premium subscriptions growth, Average Revenue Per User (ARPU), Progress in e-commerce and business solutions
Warner Music Group (WMG) - ★★
Ranked #75 in Q3 2024 SMID Cap Equity Rankings
Earnings per share (EPS) estimate: $0.27
Key Things To Watch: Streaming revenue growth, Performance of top artists and releases, Progress in emerging markets and new revenue streams
Robinhood Markets (HOOD) - ★★★★
Ranked #27 in Q3 2024 SMID Cap Equity Rankings
Earnings per share (EPS) estimate: $0.15
Key Things To Watch: Monthly Active Users (MAU) and Assets Under Custody, Cryptocurrency trading volume and revenue, New product launches and user engagement metrics
Bumble (BMBL) - ★★
Ranked #77 in Q3 2024 SMID Cap Equity Rankings
Earnings per share (EPS) estimate: $0.15
Key Things To Watch: Paying user growth across Bumble and Badoo apps, Average Revenue Per Paying User (ARPPU), Geographic expansion updates
Dolby Laboratories (DLB) - ★★★★
Ranked #33 in Q3 2024 SMID Cap Equity Rankings
Earnings per share (EPS) estimate: $0.30
Key Things To Watch: Licensing revenue growth, Adoption rates for new technologies, Progress in cinema and consumer electronics markets
Duolingo (DUOL) - ★★★★
Ranked #5 in Q3 2024 SMID Cap Equity Rankings
Earnings per share (EPS) estimate: $0.32
Key Things To Watch: Daily and Monthly Active Users (DAU/MAU), Paid subscriber growth and retention, New language course launches and engagement metrics
Topgolf Callaway (MODG) - ★★★
Ranked #43 in Q3 2024 SMID Cap Equity Rankings
Earnings per share (EPS) estimate: $0.28
Key Things To Watch: Golf equipment sales trends, Topgolf venue performance and expansion plans, Progress in integrating Topgolf with core golf business
Warner Bros. Discovery (WBD) - ★★
Ranked #82 in Q3 2024 SMID Cap Equity Rankings
Earnings per share (EPS) estimate: $-0.27
Key Things To Watch: Streaming subscriber growth (Max/Discovery+), Advertising revenue trends, Progress on merger synergies and debt reduction
Zillow Group (ZG) - ★★★★
Ranked #6 in Q3 2024 SMID Cap Equity Rankings
Earnings per share (EPS) estimate: $0.25
Key Things To Watch: Traffic to mobile apps and websites, Premier Agent revenue trends, Progress in Zillow Offers wind-down and new growth initiatives
Thursday, August 8th
Eli Lilly (LLY) - ★★★★★
Ranked #1 in Q3 2024 Large Cap Equity Rankings
Earnings per share (EPS) estimate: $2.75
Key Things To Watch: Sales growth of key drugs (e.g., Mounjaro, Trulicity), Updates on drug pipeline, especially in diabetes and obesity, Guidance on potential impacts from drug pricing legislation
TKO Group (TKO) - ★★
Ranked #72 in Q3 2024 SMID Cap Equity Rankings
Earnings per share (EPS) estimate: $0.83
Key Things To Watch: WWE and UFC viewership numbers, Live event attendance and ticket sales, Progress on international expansion and media rights deals
Dropbox (DBX) - ★★★
Ranked #53 in Q3 2024 SMID Cap Equity Rankings
Earnings per share (EPS) estimate: $0.52
Key Things To Watch: Paying user growth and ARPU trends, Progress in upselling to higher-tier plans, Updates on AI integration and new features
Expedia (EXPE) - ★★★★
Ranked #25 in Q3 2024 SMID Cap Equity Rankings
Earnings per share (EPS) estimate: $3.18
Key Things To Watch: Gross bookings and room night growth, Trends in international vs. domestic travel, Performance of Vrbo in the alternative accommodations market
News Corp (NWSA) - ★★★★
Ranked #9 in Q3 2024 SMID Cap Equity Rankings
Earnings per share (EPS) estimate: $0.15
Key Things To Watch: Digital subscription growth across properties, Real estate services performance (REA Group, Realtor.com), Book publishing trends (HarperCollins)
Paramount Global (PARA) - ★★★
Ranked #64 in Q3 2024 SMID Cap Equity Rankings
Earnings per share (EPS) estimate: $0.12
Key Things To Watch: Paramount+ subscriber growth and content performance, advertising revenue trends across TV and streaming, Film studio performance and upcoming releases
Sweetgreen (SG) - ★★
Ranked #73 in Q3 2024 SMID Cap Equity Rankings
Earnings per share (EPS) estimate: $-0.09
Key Things To Watch: Same-store sales growth, Digital order percentage and average order value, New store opening plans and performance.
A Look Back
Snapchat Takes Another Dive: A Rollercoaster for Traders
Snapchat (SNAP) - ★★★★★
Ranked #1 in our Q3 2024 SMID Cap Equity Rankings
Snap Inc., the parent company of popular social media platform Snapchat, saw its stock plummet 25% during intraday trading following the release of its second-quarter earnings report. This marks the third instance in the past year where the stock has experienced a significant decline of 20% or more, highlighting its notorious volatility.
The latest drop comes as Snap reported revenue slightly below analyst expectations and provided a cautious outlook for the third quarter. Despite the company's revenue growing 16% year-over-year to $1.24 billion, it fell short of the anticipated $1.25 billion. Snap also posted an operating loss of $253 million, though it managed to meet expectations with adjusted earnings of two cents per share.
Looking ahead, Snap's third-quarter revenue guidance of $1.335 billion to $1.375 billion, representing a 12% to 16% year-over-year increase, disappointed investors as it came in below the average analyst forecast of $1.364 billion.
However, it's not all doom and gloom for the social media giant. Snapchat's user base continues to grow, with daily active users increasing 9% to 432 million, slightly surpassing expectations. Moreover, the platform reported over 850 million monthly active users, exceeding analyst estimates of 843 million.
While the stock's current decline may seem alarming, seasoned Snap investors have seen this pattern before. In the past year, similar steep drops have been followed by impressive rebounds, with the stock gaining 70% and 100% within one to three months after previous selloffs.
This pattern of sharp declines followed by rapid recoveries has made Snap stock an attractive vehicle for traders who specialize in options or rely on technical indicators. The stock's volatility presents opportunities for substantial gains, albeit with significant risk.
As Snap navigates challenges in the digital advertising market and works to improve its financial performance, investors will be watching closely to see if the stock can stage another remarkable comeback. For now, the company's growing user base provides a silver lining amidst the current stock market turbulence.
MGM Resorts Stock Tumbles on Soft Formula 1 Bookings
MGM Resorts International (MGM) - ★★★
Ranked #36 in our Q3 SMID Cap Equity Rankings
MGM Resorts International (NYSE: MGM) saw its stock plummet 12% today, closing at around $37 per share, following the company's cautionary remarks about room bookings for the upcoming Formula 1 race in Las Vegas.
During an analyst call, CEO William Joseph Hornbuckle revealed that room rates for the highly anticipated November event are "showing some softness." This disclosure has raised concerns among investors about the potential impact on the company's fourth-quarter performance.
The Las Vegas-based hotel and casino operator emphasized that its Q4 room revenues will heavily depend on the Formula 1 race's success. Hornbuckle expressed hope that bookings will improve, stating, "We are hoping and believing that this race will continue to pace up." However, he acknowledged that current trends suggest it could be a "potential headwind" for the fourth quarter.
This latest setback adds to MGM Resorts' challenging year, with the stock now down 16% year-to-date and 24% over the past 12 months.
The company's performance has been under scrutiny as the hospitality industry continues to navigate post-pandemic recovery and shifting consumer trends.
Tinder's Turnaround: Match Group Shares Soar on Promising Q2 Results
Match Group (MTCH) - ★★
Ranked #74 in Q3 2024 SMID Cap Equity Rankings
Match Group (MTCH) stock soared 12% during intraday trading on Wednesday, reaching approximately $37 per share. This surge comes on the heels of the company's latest quarterly results, which revealed encouraging signs of progress at its flagship app, Tinder.
The stock's performance has significantly exceeded our earlier projections. Earlier this month, we issued a note indicating a twelve-month price target of $34 for MTCH, when the stock was trading at $30. With today's 12% gain, the stock is now trading around $37, representing an impressive 20%+ increase since our initial assessment.
Key Highlights from Match Group's Latest Results:
Tinder's Performance: While Tinder saw a decline in paying users, it managed to increase revenue per payer. Monthly active users decreased by 9% year-over-year in the second quarter, matching the previous quarter's decline. However, the company views this stabilization as a crucial indicator of improved performance.
Positive Outlook: Match Group expressed optimism for the current quarter, anticipating strong sequential additions of paying users. Gary Swidler, the company's Chief Financial Officer, shared expectations for Tinder to add approximately 250,000 paying users sequentially in the third quarter. This growth would mark the end of five consecutive quarters of declining payers for Tinder.
Year-over-Year Comparison: Despite the projected sequential growth, Swidler noted that payers are still expected to decline around 5% year-over-year in the current quarter.
The market's enthusiastic response to these results suggests renewed confidence in Match Group's ability to navigate challenges and capitalize on growth opportunities in the online dating space. As the company continues to focus on improving its core offerings and expanding its user base, investors will be closely watching for sustained positive trends in the coming quarters.
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The information provided in this report is for general informational purposes only and does not constitute investment advice or a recommendation to buy or sell any securities. The opinions expressed in the report are our own and are subject to change without notice. We may have a position in the securities mentioned in the report, and we may buy or sell such securities without notice. Any investment decisions made based on the information in this report are solely the responsibility of the recipient. We do not accept any liability for any direct, indirect, or consequential loss arising from any use of this report or its contents.
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