Investing

The Top Tech, Media, Telecom Earnings This Coming Week

The initial wave of companies reporting earnings was not as bad as previously thought, which gives at least somewhat of an optimistic tone for the first full trading week of May. As a result, this earnings season is likely to be all about guidance, as far as most companies are concerned.

24/7 Wall St. has put together a preview of some of the larger companies in tech, media and telecom that are reporting their quarterly results at the beginning of May. We have reviewed the consensus earnings estimates from Thomson Reuters and the stock price and trading history, as well as added some additional color on each.

The companies scheduled to report this week include Comcast Corp. (NASDAQ: CMCSA), DirecTV (NASDAQ: DTV), Walt Disney Co. (NYSE: DIS), Electronic Arts Inc. (NASDAQ: EA), Groupon Inc. (NASDAQ: GRPN), Sprint Corp. (NYSE: S), 3D Systems Corp. (NYSE: DDD), Alibaba Group Holding Ltd. (NYSE: BABA), Windstream Holdings Inc. (NASDAQ: WIN), Zynga Inc. (NASDAQ: ZNGA) and AOL Inc. (NYSE: AOL).

Comcast

The cable giant is scheduled to release its most recent quarterly results on Monday. The consensus estimates are $0.74 in earnings per share (EPS) on $17.41 billion in revenue.

The merger between Comcast and Time Warner Cable is considered dead under the weight of regulators. According to Benzinga, analysts are saying that these cable companies might have to wait until the next presidential election before any merger hopes are renewed.

Comcast shares were trading at $58.41 on Friday’s close. The consensus analyst price target is $66.92, and the stock has a 52-week trading range of $49.16 to $60.85.

ALSO READ: 13 Analyst Stock Picks Under $10 With Massive Upside Targets

DirecTV

When DirecTV reports its first-quarter results on Tuesday, the analysts’ consensus estimates call for $1.53 in EPS and $8.47 billion in revenue.

Credit Suisse expects AT&T to close its acquisition of DirecTV at some point in 2015, while AT&T’s management appears more ambitious, thinking that it can close within the first half of 2015. Ultimately this acquisition would give AT&T the top position in the U.S. pay-TV market.

DirecTV shares closed trading at $90.40 on Friday. The consensus price target is $93.35, and the stock has a 52-week trading range of $77.50 to $91.79.

Disney

The Mouse House is scheduled to report its fiscal second-quarter earnings on Tuesday. The consensus estimates call for EPS of $1.10 and $12.25 billion in revenue.

Disney filed suit last week against Verizon Communications for allegedly violating the contract that Verizon has with ESPN for distributing the network’s sports programming. If Disney prevails, then it retains control over the content it has created, and the streaming digital world will very likely look a lot like the existing pay-TV world.

Disney shares were at $110.52 on Friday’s close. The consensus price target is $110.23. The 52-week trading range is $78.54 to $111.66.Electronic Arts

This video game designer is set to post its fiscal fourth-quarter results Tuesday, and the consensus estimates call for per-share earnings of $0.25 and $849.24 million in revenue.

This is leading game developer that should benefit from not only the continuing rise in new console sales, but the rising trend of mobile gaming. The company produces top-selling games and related content and services under the EA brand in various categories, including action-adventure, role-playing, racing and first-person shooter games. It is very well-known for its EA sports games like Madden Football. Electronic Arts has made the move into mobile play by adapting many of the top franchise titles, which have been popular for years, into the mobile arena.

EA shares were trading at $59.33 as the week came to a close, in a 52-week trading range of $28.03 to $60.63. The stock has a consensus analyst price target of $58.70.

Groupon

Groupon is scheduled to report its first-quarter results on Tuesday. The consensus estimates call for just $0.01 in EPS, as well as $817.46 million in revenue.

The company was reiterated as Buy with a $12 price target at Sterne Agee in late April. This call was on the heels of the company’s Ticket Monster stake sale and its $300 million stock buyback announcement.

Groupon shares ended the week at $6.79. The consensus price target is $8.89. The stock has a 52-week trading range of $5.18 to $8.43.

ALSO READ: 5 Oil and Gas Stocks Analysts Want You to Buy

Sprint

Set to release its most recent quarterly results on Tuesday, Sprint has consensus estimates of EPS at -$0.28 on $8.69 billion in revenue.

Wireless carrier Sprint more than doubled its retail footprint recently with the opening of 1,435 Sprint-RadioShack co-branded stores. Not all the RadioShack locations will sport the new co-branding look from the start, but Sprint expects to have the switch completed in the second half of this year.

Shares were trading at $5.22 as Friday’s session came to a close. The consensus price target is $7.28, and the stock has a 52-week trading range of $3.79 to $9.76.

3D Systems

The 3D printer will post its quarterly results on Wednesday. Consensus estimates call for EPS of $0.05 and revenue of $163.32 million.

Citing lower oil prices and a strong dollar, among other “economic weaknesses,” 3D Systems lowered its revenue and earnings guidance for the first quarter. It is worth noting that unless sales improve by about 50% per quarter for the next three quarters, 3D System’s full-year guidance has no chance of being met.

3D Systems shares were trading at $24.92 on Friday’s close, in a 52-week trading range of $24.76 to $69.56. The consensus price target is only $29.53.

ALSO READ: 5 Big Stocks Expected to Outperform AppleAlibaba

When Alibaba reports its fiscal fourth-quarter results on Thursday, the consensus estimates call for $0.43 in EPS and $2.78 billion in revenue.

This Chinese giant is in the midst of a hiring freeze, and according to CEO Jack Ma, the company has grown much too quickly. Unfortunately this comes at a time when Alibaba is just above its 52-week low.

Alibaba shares ended trading at $81.17 on Friday. The consensus price target is $106.90, and the stock has a 52-week trading range of $80.03 to $120.00.

Windstream

Windstream is scheduled to report its first-quarter earnings on Thursday. The consensus estimates call for a net loss of $0.04 per share and $1.43 billion in revenue.

The firm has completed the spin-off its fiber, copper and other assets into a public real estate investment trust (REIT). It said that the implied value for Communications Sales & Leasing means investors are getting the Windstream opco at or nearly free.

Windstream shares ended the week at $11.52. The consensus price target is $48.12. The 52-week trading range is $10.09 to $20.84.

ALSO READ: 15 Companies Losing the Most Money

Zynga

This mobile gaming giant is set to reveal its first-quarter results on Thursday. Consensus estimates call for a net loss of $0.02 per share, but on revenue of $147.72 million.

In this quarter, Don Mattrick left Microsoft to join the social game maker as its CEO. Now it turns out that Mattrick will be leaving Zynga as well. The company said in a press release that founder and chairman Mark Pincus would return to Zynga as the company’s chief executive officer.

Zynga shares were trading at $2.47 as the week came to a close, in a 52-week trading range of $2.20 to $4.00. The stock has a consensus analyst price target of $3.05.

AOL

AOL is scheduled to report its first-quarter results on Friday before the opening bell. The consensus estimates call for $0.32 in EPS and $594.85 million in revenue.

AOL made the Deutsche Bank list as a top pick Internet stock to buy. The stock has pulled back handily from the high printed in January, to the point that it may be offering investors a very solid entry point. Activist investor Starboard Value, which had pressed for a potential merger of the company with Yahoo, seems to have backed away from the idea, which as recently as two months ago they were very big on. The Deutsche Bank team hosted CEO Tim Armstrong at the MIT conference, and he was very positive on the strategy around content and ad technology initiatives.

Shares of AOL changing hands at $40.60 as Friday trading concluded. The consensus price target is $47.00. The stock has a 52-week trading range of $32.31 to $49.86.

ALSO READ: Are Social Media Stocks Now Grossly Oversold?

 

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.