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Earnings

Q3 company earnings results: will Walmart, Nvidia and Cisco's share prices soar?

Company earnings season continues with updates in tech, cannabis and China’s second-biggest coffee seller.

 

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Walmart's [WMT] share price is trading near year highs and if the company’s earnings results come out strong, then a fresh high could be on the cards.

Tech investors will be looking out for updates from Cisco [CSCO] and Nvidia [NVDA]. Cisco's share price is currently range-bound and needs a boost for it to break out. While Nvidia's share price could gain after strong numbers from Intel showed that it has been a profitable quarter for chipmakers.

Cannabis stocks Tilray [TLRY] and Cronos [CRON] both report company earnings this week. Shareholders will be hoping that the results will light up both share prices after fizzling for much of the year. While in China, Luckin Coffee [LK] will be releasing their second company earnings results after going public earlier this year. 

 

Walmart

When are they reporting?

14 November

Why traders should care

Walmart's share price is up 28% this year, trading just under its 52-week high. Last quarter, Walmart beat analyst expectations with solid financials and increased profitability. How its digital business is coping alongside competition from Amazon is one to watch.

Key metric

Revenue from digital business

Analyst expectation/outlook

Walmart's company earnings have beat expectations in the past four quarters. Forecasts this time are for earnings per share of $1.09, up from the $1.08 seen in Q2. Revenue is forecast to come in at $128.5 billion.

 

 

Nvidia

When are they reporting?

14 November

Why traders should care

Nvidia's share price is trading near its year high, having shot up 53% so far in 2019. Demand in supercomputers, gaming and data centers have seen Nvidia take market share from rivals. Chipmakers have delivered stellar results this earnings season. Investors will be hoping for more of the same when Nvidia updates the market. 

Key metric

Earnings per share

Analyst expectation/outlook

Expectations are for $1.58 earnings per share, down from $1.84 in the same quarter last year. Revenue expectations are for $2.92 billion down from $3.18 billion. Nvidia itself expects revenue to decline 8.8% in Q3. Analysts are bullish on Nvidia's share price right now. In October, Bank of America raised its price target on Nvidia stock from $225 to $250.  

 

 

Cisco

When are they reporting?

13 November

Why traders should care

Cisco's share price has tanked since July following disappointing earning numbers. In the results, earnings growth dropped 42%. Since then, the stock has been trapped between the $45 and $50 range. Traders will be hoping that Q1 numbers will help the stock break out of this range and head back to July’s highs. 

Key metric

Earnings growth

Analyst expectation/outlook

Wall Street is expecting $0.81 a share for the third quarter, up 8% since the same quarter last year, while revenue expectations are flat at $13.08 billion.  Cisco has beaten expectations in the last four quarters, so another beat could be in store. 

 

 

Cronos

When are they reporting?

12 November

Why traders should care

Cronos’s share price has dropped 27% in 2019, in what has been a bumpy year for cannabis stocks. A shortage of legal stores and tighter regulation have extinguished trader appetite. Then there are ongoing concerns over profitability. 

Key metric

Revenue growth rate

Analyst expectation/outlook

Expectations are that Cronos will report an EPS loss of $0.03, flat from last year. Revenue is set to come in at $11.08 million, up 292.2%. While this growth might be sky-high, there's speculation that Cronos's growth rate is slowing.

 

 

Tilray

When are they reporting?

12 November

Why traders should care

Like fellow cannabis supplier Cronos, Tilray's stock has plummeted 67% this year. The reasons are much the same: regulation and product over-supply. But, news of Tilray's purchase of the world's largest hemp-based food company, Manitoba Harvest, and a $100 million partnership with brewer Anheuser-Busch could help boost Tilray's share price.

Key metric

Partnership revenue

Analyst expectation/outlook

Wall Street expects Tilray to post earnings per share of -$0.3, down from -$0.2 seen last year. However, expectations are for $49.59 million in revenue, up 393.6%. Yet, traders should be aware that Tilray has consistently missed earnings expectations.

 

 

Luckin Coffee

When are they reporting?

13 November

Why traders should care

Luckin Coffee’s share price has fallen 9% since it IPO’d earlier this year. Trying to overtake Starbucks in China hasn’t come cheap. Having opened 3,000 stores since being founded 2 years ago, Luckin’s first quarterly results left a bitter taste in the mouth of early investors as losses topped analyst expectations.

Key metric

Earnings per share

Analyst expectation/outlook

Expectations are for losses to continue, coming in at -$0.37 a share, down from the -$0.48 seen last quarter. Revenue is expected to come in at $211.46 million, up from $132.4 million. Whether hitting this is enough for traders to wake up and smell the coffee remains to be seen.

 

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