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U.S. Earnings Analysis – Projections & Insights: Apple, Starbucks, Chevron & many more will announce their earnings this week

By  Takao Hirose (Contextual Investments, LLC)   30 October 2018  |  News
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Apple, Starbucks, Chevron & many more will announce their earnings this week. How do you think they went? Pay close attention to these insights…

Summary for this report:

1.  DowDuPont Inc. (NYSE: DWDP) is going to release it Q3 earnings before market open on November 1st, Thursday.

2.  Apple Inc. (NASDAQ: AAPL) is going to report its earnings for fiscal year 2018 after market close on November 1st, Thursday.

3.  Shake Shack (NYSE: SHAK) is going to release its Q3 earnings after market close on November 1st, Thursday.

4.  Starbucks Corporation (NASDAQ: SBUX) is going to report earnings for fiscal year 2018 after market close on November 1st, Thursday.

5.  Chevron Corporation (NYSE: CVX)  is going to release it Q3 earnings before market open on November 2nd, Friday

6.  Exxon Mobil Corporation (NYSE: XOM) is going to report Q3 earnings before market open on November 2nd, Friday.


1. DowDuPont Inc.

DowDuPont Inc. (NYSE: DWDP) is going to release it Q3 earnings before market open on November 1st, Thursday.

Consensus EPS is 72¢, and consensus revenue is $20.22 billion.

The company reported better than expectation Q2 earnings in August as below:

Actual EPS: $1.37 v.s Expected EPS: $1.29

Actual revenue: $24.25 billion v.s Expected revenue: $23.71 billion, revenue growth was +75.3% year-over-year. But the revenue was surged up by M&A activities.

The company raised guidance of revenue for Q3 from $19.5 billion to $20.1 billion.

(DowDuPont one year price chart as of Oct. 30, source from yahoo finance)


2. Apple Inc.

Apple Inc. (NASDAQ: AAPL) is going to report its earnings for fiscal year 2018 after market close on November 1st, Thursday.

Consensus EPS for Q4 is $2.78 and consensus revenue is $61.49 billion for Q4.

Apple reported they beat expectations in Q3 earnings in August as below:

Actual EPS: $2.34 v.s Expected EPS: $2.18

Actual revenue: $53.3 billion v.s Expected revenue: $52.43 billion, revenue growth was +17.3% than the same period last year.

Actual gross margin: 38.3% v.s Expected gross margin: 38.3%, it was 38.5% for the same period last year.

iPhone sales: Actual sales of 41.3 million v.s Expected sales of 42.0 million, it was 41.0 million the same period last year.

Average selling price (ASP): Actual ASP of $724 v.s Expected ASP of $694

iPad Sales: Actual sales of 115 million v.s Expected sales of 112 million, it was 114 million the same period last year.

Mac sales: Actual sales of 37 million v.s Expected of 43 million, it was 43 million the same period last year.

Actual Services Revenue: $9.55 billion v.s Expected Services Revenue: $9.21 billion

Revenue growth by region year-over-year: US: +20%, Europe: +14%, China: +19%, Japan: +7%, Asia Pacific ex Japan: +16%

Apple raised its Q4 revenue expectation in August from a range of $60 billion to $62 billion from previous expectation of $59.4 billion.

Also, the management forecasted gross margin in a range of 38%-38.5% while the previous expectation was 38.2%. Gross margin for the same period last year was 37.9%.

(Apple year to date price chart as of Oct. 30, source from yahoo finance)


3. Shake Shack

Shake Shack (NYSE: SHAK) is going to release its Q3 earnings after market close on November 1st, Thursday.

Consensus EPS is 13¢, and consensus revenue is $117 million for Q3.

Shake Shack’s Q2 earnings surpassed estimation in August as below:

Actual EPS: 29¢ v.s Expected EPS: 18¢

Actual revenue: $116 million v.s Expected revenue: $111 million, revenue growth was +27.4% year-over-year.

Same-store-revenue growth was +1.1%.

The company insisted to the original guidance of revenue in a range of $446-$450 million for fiscal year 2018, against the estimation of $452 million.

Also, the management forecasted same-store-revenue growth as of 0%-1%. 

Shake Shack is said to open 32-35 company-owned new stores and 16-18 licensed stores in U.S within this fiscal year.

(Shake Shack year to date price chart as of Oct. 30, source from yahoo finance)


4. Starbucks Corporation

Starbucks Corporation (NASDAQ: SBUX) is going to report earnings for fiscal year 2018 after market close on November 1st, Thursday.

Consensus EPS is 60¢, and consensus revenue is $6.27 billion for Q4.

The company reported better than expectation Q3 earnings in July as below:

Actual EPS: 62¢ v.s Expected EPS: 60¢

Actual revenue: $6.31 billion v.s Expected revenue: $6.25 billion, revenue growth was +11.5% year-over-year. 

Global comparable store revenue increased 1%, driven by a 3% increase in average ticket, but offset by 2% decrease of customer numbers.

Q3 America segment revenue increased 1%, driven by a 4% increase in average ticket but offset by 2% decrease of customer numbers. Revenue in China/Asia pacific segment was 1% down, although average ticket increased 2%, customer numbers was 3% down than the same period last year. Net revenues for the EMEA segment grew 0%, because of 3% increase in average ticket but 2% decrease in customer numbers.

Starbucks raised Q4 EPS guidance from 63¢ to 68¢.

The company keeps sales revenue unchanged, and it expects full year global comparable store sales growth to be just below the 3-5% targeted range.

(Starbucks year to date price chart as of Oct. 30, source from yahoo finance)


5. Chevron Corporation

Chevron Corporation (NYSE: CVX) is going to release it Q3 earnings before market open on November 2nd, Friday.

Consensus EPS is $2.09, and consensus revenue is $47.17 billion for Q3.

Chevron released disappointed Q2 earnings in August as below:

Actual EPS: $1.78 v.s Expected EPS: $2.09

Actual revenue: $42.24 billion v.s Expected revenue: $46.62 billion, revenue growth was +22.5% than the same period last year.

Q2 production rose slightly to 2.83 million barrels of oil (boe) day from 2.78 million boe/day in the year-earlier period, driven by incremental production from new project.

U.S. upstream operations earned US$838 million in Q2 2018, compared with a loss of US$102 million a year earlier, mainly boosted by the higher oil prices and impairment loss on assets.

International upstream operations earned $2.46 billion while $955 million in last year's Q2, mostly due to higher crude oil price and higher natural gas production.

U.S. downstream operations earned $657 million, compared with $634 million of revenue the same period last year.

International downstream earned $181 million compare with $561 million of the same period last year, which was largely due to lower margins on refined product sales.

(Chevron year to date price chart as of Oct. 30, source from yahoo finance)


6. Exxon Mobil Corporation

Exxon Mobil Corporation (NYSE: XOM) is going to report Q3 earnings before market open on November 2nd, Friday.

Consensus EPS is $1.22, and consensus revenue is $72.91 billion for Q3.

ExxonMobil reported Q2 earnings in July. Reported EPS of 92¢ fell short of expectation of $1.27. Q2 revenue was $73.5 billion compared with expectation of $71.66 billion, and revenue growth was +26.6% year-over-year.

Production during Q2 was 3.6 million boe/day, and fell 7% from the same period last year.

Oil production growth in the Permian and Bakken continued, reaching over 250,000 oil-equivalent barrels per day in the second quarter, an increase of 30% from the same period last year.

Global refining margins strengthened during Q2, due to increased petroleum product demand and industry refinery maintenance activity.

ExxonMobil continued to make significant progress in the Chemical business. New volumes in Singapore and the U.S. contributed 530,000 metric tons of sales during Q2.

(Exxon Mobil year to date price chart as of Oct. 30, source from yahoo finance)




This report was contributed by Takao Hirose, Contextual Investments, LLC., published on 29/10/2018.


The content of this article is given for general information only. As general information, no consideration or evaluation is given to the investment objectives or financial situation of any particular person. Trading and investing involve substantial financial risk. All readers of this article should make their own evaluation of the merits and suitability of any financial products and/or advice or seek specific personal advice as to the appropriateness of engaging in any activity referred to in this article in light of their own particular financial circumstances and objectives. 



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