Credit: Shutterstock photoHere's your weekly Investing Action Plan: what you need to know as an investor for the coming week.
[ibd-display-video id=3151711 width=50 float=left autostart=true] The focus of earnings season in the coming, holiday-shortened week shifts away from the tech sector and pivots toward retail heavyweights like Walmart ( WMT ) and Home Depot ( HD ), restaurant chains, and shale producers like Continental Resources ( CLR ). Still, some notable tech companies will also report, including Roku ( ROKU ) and Universal Display ( OLED ).
Walmart: Goliath Vs. Goliath
When the largest brick-and-mortar retailer reports Q4 results Tuesday morning, analysts expect a 4.6% EPS increase to $1.36 on 3% revenue growth to $135.01 billion. Walmart has been plowing money into online and delivery efforts as it bolsters its digital defenses against Amazon (AMZN) and other e-commerce players. Walmart is also reportedly revamping its private-label apparel offerings as Amazon gains market share in that category and as consumers shift away from pricier name-brand clothing labels.
Home Depot
The home improvement retailer reports Q4 numbers early Tuesday, and analysts see EPS shooting up to $1.62 from 11 cents a year ago, as revenue climbs 6.6% to $23.67 billion. The report comes during a pivotal period in the housing market. Mortgage rates are climbing, and costs for labor and materials continue to pressure homebuilders' margins. But demand is being helped by millennials finally shifting to homeownership and away from rentals, and confidence among builders remains high. Housing starts also surged in January with permits hitting the highest level since 2007.
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Roku Report To Focus On User Numbers
The streaming video platform is scheduled to report Q4 results after the market close on Wednesday. Analysts expect Roku to post an adjusted loss of 11 cents a share on sales of $183 million. Key for investors will be growth metrics such as the company's active user base, streaming hours and average revenue per user. In the September quarter, Roku said active accounts increased 48% year over year to 16.7 million, streaming hours grew 58% to 3.8 billion hours, and average revenue per user climbed 37% to $12.68.
Universal Display To Shed Light On Q4
The provider of technology and materials for OLED displays and lighting is set to announce Q4 results after the close Thursday. Analysts expect Universal Display to earn 82 cents a share, up 49%, on sales of $98 million, up 31%. A big overhang on the company was removed when Universal Display announced new long-term supply and license agreements with major customer Samsung on Feb. 14.
Shale Earnings
Continental Resources and Parsley Energy (PE) will report Q4 results after the market closes Wednesday. Analysts expect Continental to swing to a profit of 28 cents per share vs. a loss of 7 cents per share in the year-ago quarter. Revenue is seen climbing 70% to $935 million. Parsley's EPS is expected to jump 200% to 18 cents with revenue up 91% to $298 million. Cabot Oil & Gas 's (COG) EPS is seen soaring 1,100% to 12 cents when it reports results Friday. Revenue is expected to rise 35% to $426 million. Concho Resources (CXO) and Devon Energy (DVN) are scheduled to report quarterly results after the market closes Tuesday.
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Sprouts Farmers Market
The natural foods grocery chain reports Thursday, and the consensus is for Q4 EPS to rise 25% to 15 cents, with revenue up 16% to $1.14 billion. The grocery space is heating up as supermarkets dive into the online delivery arena, with Amazon now promising Whole Foods Market deliveries in two hours in four markets. Kroger (KR), Walmart and others are similarly exploring home delivery. But for now, Sprouts Farmers Market 's (SFM) results don't seem to have been hit since Amazon's takeover of Whole Foods last summer.
U.S. Casino Leaders On Deck
MGM Resorts International (MGM), whose casinos dominate the Las Vegas Strip, reports Q4 results early Tuesday. Wall Street expects a 36% drop in EPS to 7 cents, as revenue creeps up 1.5%. The earnings will follow a mass shooting in October, in which a gunman killed nearly 60 people after firing on them from a window at MGM's Mandalay Bay hotel. Penn National Gaming (PENN) said the shooting left business at its Tropicana resort "very challenged." MGM this month also opened its second resort in Macau, the world's largest gaming market. Boyd Gaming (BYD) also reports on Tuesday. Pinnacle Entertainment (PNK), which Penn plans to buy, reports on Friday.
Restaurant Earnings Sandwich
Domino's Pizza (DPZ), which reports Q4 results on Tuesday, is expected to show EPS of $1.94, a 31% jump. Revenue is seen climbing 10% to $903 million. Also set to report Tuesday is Texas Roadhouse (TXRH). Analysts expect a 24% pop in EPS to 36 cents, as revenue increases 12% to $544 million. Wingstop (WING) is set to report Thursday, with Wall Street expecting a 6% EPS gain to 16 cents on revenue of $28 million, up 12%. Wendy's (WEN), Cheesecake Factory (CAKE), BJ's Restaurants (BJRI) and Bloomin' Brands (BLMN) also report.
First Solar
The solar technology leader reports Q4 earnings after the market close Thursday, during a disruptive time in the solar power industry. Analysts expect a loss of 31 cents per share, compared with a profit of $1.24 a share in the year-ago period. The consensus on revenue is $434 million, a drop of 9.5%. First Solar[ ticker symb=FSLR] has recently launched new solar-panel technology, known as Series 6, which has several competitive advantages, but the industry overall is facing declining prices for solar panels and overproduction.
'Free Market'
Argentina-based e-commerce company MercadoLibre (MELI) reports Q4 earnings on Thursday, after the market close. The consensus estimate is for EPS of 51 cents, down 56%, while revenue is seen surging 58% to $405 million. The Latin American e-commerce market is becoming more competitive, with Amazon reportedly planning to increase its presence in Brazil.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
