Mr Price Action/ February 6, 2017/ Earnings Season/ 0 comments

Q4 Earnings – Week 4

As we are in the middle of earnings season with US companies doing well, it is going to be interesting to see how their European counterparts will respond. Just by looking at underlying trends in revenue and EBITDA growth we can see that after two years of negative growth we are back to black numbers. For Europe, the picture is similar and European companies should be able to turn negative in 2017. Likely the Q1 earnings should prove the underlying trend.

BNP Paribas – the financial landscape is changing in Europe and more and more bank are becoming more optimistic about the future. All of that comes on the back of lower loan provisions, loan growth and increased client trading activity, what was clearly seen in in Q4 over and after US presidential elections. The banks are desperate for higher interest rates to improve their profitable margins and avoid painful cost cutting, layoffs or charging their client interest on negative cash balances. The possibility of rising interest rates not only in US but in EZ too, will have a positive effect on bank and pension manager share prices.

General Motors – readying to report top results

Rio Tinto – as the global mining industry keeps recovering form the slump over the recent years, the results of Rio Tinto will be closely watched by market participants. There are many investors who do not fully realize how well diversified activities the company has. For example, the revenue is split as follows:

42% iron ore

28% aluminium

13% copper

10% diamonds & minerals

7% energy

As the market is expecting a 100% rise in profits on y/y basis, the revenue should be up 50% y/y, thus the company performance will definitely be a good indicator of global growth.

Coca-Cola – investors expect decline in profits as company is witnessing steady declines of sales of its soda drinks despite diversifying away to vitamin or coconut waters. It is not anything new, the trend is in place for quite some time. Definitely, the stronger USD is not helping the profits either.

NVIDIA – seems to be another fast-growing company as the market is expecting the 80% y/y rise in profits and 50% rise in revenue. The company is thriving on strong trend shifts within auto self-driving, virtual reality, data center and gaming.

Time Warner – investors are eager to see better results coming from higher cable and box office revenue. What will also be of interest is the ongoing acquisition from AT&T and its impact on overall business.

Twitter – to report better profits but market is curious about the plans to sell the company

Name

Exchange Date Estimated EPS EPS growth y/y

Estimated Revenue

BNP Paribas FR Tuesday 1.38 8.6% 10,561
Statoil NO Tuesday 0.18 200.2% 13,848
BP UK Tuesday 0.03 163.6% 48,868
General Motors US Tuesday 1.17 -15.8% 41,197
Gilead Sciences US Tuesday 2.55 -23.1% 7,154
Walt Disney US Tuesday 1.50
Rio Tinto UK Wednesday 1.79 99.9% 18,688
SoftBank Group JP Wednesday 101.28 2,301,065
Sanofi FR Wednesday 1.24 -5.1% 9,260
GlaxoSmithKline UK Wednesday 0.25 38.1% 7,485
Alergan US Wednesday 3.75 3,810
Suncor Energy CA Wednesday 0.30 1420.0% 7,692
Prudential Financial US Wednesday 2.31 19.1% 12,107
Time Warner US Wednesday 1.19 7,710
TOTAL FR Thursday 0.84 4.7% 31,588
Zurich Insurance Group CH Thursday 5.49 353.0%
Coca-Cola US Thursday 0.37 -3.4% 9,156
CVS Health Corp US Thursday 1.67 9.0% 46,514
NVIDIA US Thursday 0.94 80.0% 2,105
L’Oreal FR Thursday 2.85 6,731
Societe Generale FR Thursday
Manulife CA Thursday 0.51 16,240
Twitter US Thursday 0.12 151
Vestas Wind System DK Friday

 

Good luck Champs!

Mr Hawk

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