You Don’t Want To Get Caught Shorting Lendingtree, Facebook, Hasbro, Intuitive Surgical, Priceline This Earnings Season by Estimize
As the door closes on another earnings season, investors can relax for a few weeks until the next one begins. Fourth quarter earnings were largely disappointing with far and few names able to make a splash. However, it hasn’t been so bad for everyone and ahead of Q1 earnings a number of companies are poised to impress investors. They include, Lending Tree (TREE), Facebook (FB), Hasbro (HAS), Intuitive Surgical (ISRG) and Priceline (PCLN). According to the Estimize data these names have been on the move, as witnessed by consistent year over year growth, heavy upward revisions and a history of beating expectations.The combination of these factors have typically led to subtantial outperformances.
ValueWalk's Raul Panganiban interviews William Burckart, The Investment Integration Project’s President and COO, and discuss his recent book that he co-authored, “21st Century Investing: Redirecting Financial Strategies to Drive System Change”. Q1 2021 hedge fund letters, conferences and more The following is a computer generated transcript and may contain some errors.
Lendingtree (TREE) Financials – Thrifts & Mortgage Finance
One of the early adopters in the recent wave of financial technology, Lending Tree has successfully expanded to the point where it has now been trading on the market for 7 years. In this time shares have skyrocketed from their $10 IPO in 2009 to $94, where they are today. Lending Tree has been on a spree of strong earnings, beating on the bottom line in each of the past 4 quarters. Revenue has been just as good if not better, trumping expectations in 5 consecutive quarter. The Feds move to raise interest rates at the start of the year, gave the lending company a nice boost heading into its fiscal 2016. The Estimize community has been bullish on Lending Tree, increasing EPS estimates 7% and revenue 14% in the past month. As a result, the data is calling for EPS of $0.67, 2% higher than Wall Street and revenue of $85.60 million, right in line with the Street. Compared to the year prior, this predicts as a YoY increase in earnings of 53% while sales are looking to grow 68%. Lending Tree consistently beats Estimize and Wall Street, trumping on the top line 50% and 90% of reported quarter, respectively.
Facebook (FB) Information Technology – Internet Software & Services
The current darling of Wall Street, Facebook has lived up and even passed its astronomical expectations. Last quarter Facebook crushed its earnings by a wide margin thanks in large part to its growing user base, increasing ad revenue and profitable acquisitions in WhatsApp and Instagram. Estimize is high on Facebook to open fiscal 2016 strong, calling for EPS of $0.67, 5 cents higher than the Street, and revenue expectations of 5.32 billion, roughly $130 million above Wall Street. The social media company has witnessed favorable revisions activity lately with EPS rising 13% and revenue up 4% in the past 3 months. Compared to Q1 2015, this represents a projected YoY increase on earnings of 57% and revenue of 49%. Unsurprisingly, Facebook beats Estimize in 75% of recorded quarters and Wall Street a resounding 84% of the time.
Hasbro (HAS) Consumer Discretionary – Leisure Equipment & Products
American toy and board game maker, Hasbro is coming off a tremendous fourth quarter thanks to the overwhelming success of the blockbuster movie, Star Wars: The Force Awakens. Star Wars related toys propelled Hasbro to a 9 cent beat last quarter, while revenue topped expectations by $100 million. It won’t be surprising if movie related products continue to boost sales throughout 2016. This quarter, Estimize expects Hasbro to post earnings of $0.22 on $780.03 million in revenue, $17 million higher than Wall Street in sales. Compared to the year prior, EPS is projected to grow 5% while revenue is looking to grow 9%. Hasbro is seeing marginal upward revisions activity lately with EPS increasing 4% in the past 30 days.
Intuitive Surgical (ISRG) Health Care – Health Care Equipment & Supplies
While most health care companies have suffered through the current market volatility, Intuitive Surgical has done the exact opposite. In the past 12 months, shares of the surgical robotics company rose 15% thanks to 3 consecutive earnings beats. The success of the Da Vinci and other surgical systems have propelled EPS estimates 5% over the past month. This quarter, the Estimize Select Consensus is looking for EPS of $4.46 on revenue expectations of 597.93, 18 cents higher than Wall Street on the bottom line and $14 million higher on the top. If all goes as planned, profitability is expected to grow 21% on a 10% increase in revenue, year over year.
Priceline (PCLN) Consumer Discretionary – Internet & Catalog Retail
The travel industry is one of the hottest industries and Priceline is reaping the rewards. In the past 12 months, shares of the hospitality company skyrocketed 16.6% on a series of blockbuster earning reports. Robust booking growth and strategic investments, particularly in Ctrip, should continue to pay off throughout 2016. To start fiscal 2016, the Estimize consensus is calling for EPS of $9.92, 21 cents higher than Wall Street, and revenue expectations of $2.12 billion, right in line with the Street. Compared to Q4 2015, this predicts as a 22% increase on the bottom line while sales are expected to grow 15%. Given Priceline’s track record, its not surprising they beat Estimize and Wall Street in 88% and 91% of reporter recorded, respectively.
How do you think these names will report this week? Be included in the Estimize consensus by contributing your estimates here!