This week brings another slew of earnings reports for investors to get through. Here are the top 5 you should be watching.
There are a significant number of industry leaders reporting earnings this week, many of which have battled the harsh effects of the COVID-19 pandemic.
Walt Disney (NYSE: DIS) experienced COVID hardship in 2020 due to theme park closures, box office delays, and cancelled cruises. However, the media giant’s streaming service, Disney+, was the magic spell that saved the company.
The media company also made the important decision to forego issuing dividends and redirect the capital towards investing in its streaming services. In doing so, Disney will have several billion that can be put towards creating new content to help it compete with Netflix, which spent around $17 billion on content in 2020.
The entertainment giant will need to propose a strong long-term strategy in order to keep Disney stock, which has increased more than 40% over the past six months, from plunging back to earth. Wall Street is looking forward to Disney giving more information about the future growth of Disney+, its plans for its parks reopening when vaccines are administered widely, and details about when movies might be released to the big screen. If the company expects cinemas and parks to remain closed for much longer, Disney will need to have a strong plan for growing Disney+, backed up with investment plans to avoid shareholder disappointment.
The House of Mouse is expected to lose $0.42 per share on revenue of $15.91 billion in Q4, down from $1.53 per share on revenue of $20.86 billion in the year-ago quarter.
When is Disney’s earnings call?
Disney reports earnings on Thursday, February 11 after the bell at 5:00 PM Eastern Time. To listen to Disney’s earnings call, visit the company’s investor relations page here.
If the leading robotic manufacturers’ Q3 earnings are anything to go by, iRobot (NASDAQ: IRBT) should breeze past analyst expectations this week. Prime Day will have been an important revenue stream for iRobot in Q4 as investors expect the company’s earnings to have gained from robust demand for its Braava and Roomba products.
However, iRobot’s gross margins might come under pressure due to promotional initiatives that were used to increase sales, alongside heavy development expenses and logistical challenges caused by the pandemic. The company planned to increase its operating expenses to $194 million for the fourth quarter. iRobot stock also got caught up with the recent short-squeeze chaos which caused shares to jump almost 30% in one day in late January.
Wall Street is expecting iRobot to report $0.31 per share on revenue of $494.07 million in the company’s fourth-quarter report.
When is iRobots’s earnings call?
iRobot reports earnings on Wednesday, February 10 after the bell at 5:00 PM Eastern Time. To listen to iRobot’s earnings call, visit the company’s investor relations page here.
The social media app that notoriously booted former-President Donald Trump is experiencing a resurgence in digital ad spending. Twitter’s (NYSE: TWTR) advertising revenue is said to have improved despite taking a huge hit during COVID-19 as small businesses returned to the social media platforms to buy ads. In the most recently reported period, Twitter generated more than $2.99 billion in advertising services, up from $2.6 billion in the previous year.
Furthermore, Twitter’s recent initiatives to add features to focus on tackling abuse on the platform should help it expand the monetized user base in the future and promote further ad spending. Shareholders will also be keen to hear about Twitter’s plans to offer a paid subscription service to generate further revenue. The company also recently acquired newsletter service Revue.
The microblogging site is expected to report $0.29 per share on revenue of $1.18 billion in Q4, up 16% YoY.
When is Twitter’s earnings call?
Twitter reports earnings on Tuesday, February 9 after the bell at 5:00 PM Eastern Time. To listen to Twitter’s earnings call, visit the company’s investor relations page here.
Coca-Cola’s (NYSE: KO) is yet another company that has suffered due to the pandemic. The company’s Q3 sales declined 6% as events and venues were canceled or closed globally. The stock has regained around 75% of its losses from the pandemic-driven sell-off last year but has still witnessed a 10% decline so far in 2021.
Shareholders will be keen to hear the company’s thoughts on the health of the restaurant industry as a whole. Around 50% of Coke’s revenue is generated from on-premise sales, so this side of the business should indicate restaurant traffic.
Analysts predict Coca-cola to record earnings of $0.41 per share in Q4, representing a decline of 6.% YoY. Revenues are expected to be $8.74 billion, down 3.6% YoY.
When is Coca-cola’s earnings call?
Coca-cola reports earnings on Wednesday, February 10 before the bell at 9:00 AM Eastern Time. To listen to Coca-cola’s earnings call, visit the company’s investor relations page here.
General Motors (NYSE: GM) grew vehicle sales 5% in the U.S. and 14% in China in Q4 as the market bounced back to pre-pandemic levels. However, as the Detroit-based company shifts to electric vehicles, it is faced with a new challenge: global chip shortages. This issue has resulted in four General Motors assembly plants in the U.S., Canada, Mexico, and Korea lying idle starting on Monday for an undisclosed amount of time.
General Motors is expected to report earnings of $1.64 in the fourth quarter, representing growth of 3,000% YoY. The company announced that its average transaction price in 2020 set a new record at $39,229 and for Q4 it averaged at $41,886. General Motors sales were up 4.8% YoY in the December period too as retail sales for the company returned to their pre-pandemic levels. Fueled by pickup truck sales, revenues of $36.9 billion are estimated, up 20% from the year-ago quarter.
When is General Motors’ earnings call?
General Motors reports earnings on Wednesday, February 10 before the bell at 9:00 AM Eastern Time. To listen to General Motors’ earnings call, visit the company’s investor relations page here.
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