Deep into earnings season, we’ll get several hard-hitting first-quarter results next week, including from the largest mall operator in the United States, a leading automaker and the largest entertainment company in the world. Their results could help calm volatile markets that have been swinging between gains and losses in recent days after a sharp sell-off throughout April.
- Simon Real Estate Group (NYSE:GPS)
- electronic arts (NASDAQ:EA)
- Coinbase (NASDAQ:PIECE OF MONEY)
- Roblox (NYSE:RBLX)
- Toyota (NYSE:MT)
- waltz disney (NYSE:SAY)
- Ali Baba (NYSE:BABA)
While news that the Federal Reserve raised interest rates by half a percentage point led to a big one-day rally on May 4, most of the gains were wiped out by the next day as investors were pulling back amid growing uncertainty about a possible global recession and the escalating war in Ukraine.
Volatility was fueled, in part, by mixed first quarter results. For every business that seems knock it out of the parkas Advanced micro-systems (NASDAQ:AMD), there seems to be another one, like Amazon (NASDAQ:AMZN) that struck.
With just over half (55%) of S&P500 80% of companies reporting Q1 results reported earnings per share (EPS) above expectations and 72% reported earnings above expectations, according to FactSet data.
Here are seven stocks reporting profits the week of May 9.
|GPS||Simon Real Estate Group||$122.34|
|PIECE OF MONEY||Coinbase||$114.25|
Stock reporting earnings: Simon Property (SPG)
Indianapolis-based Simon Property Group is the largest shopping center operator in the United States. A real estate investment trust (REIT), it owns 232 properties which, combined, provide nearly 250,000 square feet of retail space. While the bulk of its malls and outlets are located in America, the company also has operations in Asia.
Over the past six months, SPG stock has slumped along with the broader market, having fallen 28% to $122.37 per share. The decline essentially wiped out the stock’s gains over the past year, leaving the stock price up just 1% over the past 12 months. Analysts remain optimistic on Simon Property shares as they expect the return to in-person shopping to accelerate throughout this year as Covid-19 recedes.
For the first trimester, analysts expect Simon Property Group reports EPS of $1.29 on revenue of $1.19 billion.
Electronic Arts (EA)
Shares of Electronic Arts, a video game maker based in Redwood City, Calif., outperformed the market so far in 2022. Year-to-date, EA stock is down 10% to $120 per share. That’s less than half of the 21% drop in heavy tech Nasdaq hint. The company is behind popular game franchises such as Mass Effect, The Simsand many sports titles such as Madden Football NFL and FIFA Soccer.
Currently, Electronic Arts is involved in negotiations to renew its licensing agreement with FIFA, the non-profit governing body that organizes the FIFA World Cup every four years. Reports indicate that FIFA wants to increase its annual licensing fees to $250 million per year from $150 million. Electronic Arts is applying to use the FIFA name and logo for new ventures such as video game tournaments and non-fungible tokens (NFTs). The talks are said to be deadlocked.
Analyst forecasts that Electronic Arts will report EPS of $1.43 and revenue of $1.77 billion for the first quarter.
Earnings Stocks: Coinbase (COIN)
Cryptocurrency exchange Coinbase has had a rough time over the past six months. Since November 2021, COIN stock has fallen 65% to recently trade around $116.64 per share. This decline includes a decline of 54% this year. The selloff comes amid weakness across the cryptocurrency sector. The price of Bitcoin (BTC-USD), the largest cryptocurrency, is down 45% from its all-time high of $68,000 reached last November.
Statistics from Google Trends show that, based on internet searches, interest in cryptocurrencies is declining. Internet searches for information about Bitcoin and cryptocurrencies as a whole have plummeted since peaking in May 2021, according to Google. Of course, Coinbase is doing what it can to try to reverse the downturn. Recently, the exchange opened a new non-fungible tokens (NFT) market open and accessible to all users of its platform. We will see if this and other initiatives can reverse the fortunes of COIN stocks.
For Q1, analysts call on Coinbase to report EPS of $0.17 on revenue of $1.48 billion.
Another video game developer, albeit smaller, is announcing earnings next week. Roblox, based in San Mateo, Calif., released its latest numbers on May 10. The Company operates the “Roblox” online gaming platform and game creation system that allows users to program their own video games and play games created by other users. It’s a unique approach to video games, and one that has had mixed results.
For the first trimester, analysts expect Roblox reports EPS loss of -$0.22 on revenue of $640 million. Anything better than that and the stock RBLX could be improved. The stock could definitely use it. Year-to-date, the company’s stock price has fallen 70% to $30.16. The stock is now 80% below its 52-week high of $141.60.
The sharp drop was blamed on concerns about slowing user growth on the Roblox platform now that people everywhere are emerging from Covid-19 hibernation.
Stocks Reporting Earnings: Toyota (TM)
Japanese automaker Toyota released its first-quarter results on May 11. And, as is always the case, financial statements should serve as indicator for the global automotive industry. The manufacturer behind popular vehicles such as the Tacoma pickup truck and Sienna minivan has seen its stock price hold up better than most in the current environment. This year, TM stock is down 8% at $170 per share, versus a 13% decline in the benchmark S&P 500. Over the past year, the stock has gained 12%.
Like all car manufacturers, Toyota is in the process of electrifying its fleet of vehicles. And, like all automakers, Toyota is grappling with a global semiconductor shortage and supply constraints that have made it difficult for the company to meet production targets. The Japanese company recently downgraded his outlook for new vehicle sales this year to 15.5 million units from 16.5 million previously due to global chip shortages.
Wall Street appeals Toyota will report EPS of $2.46 and revenue of $63.7 billion for the first quarter of this year.
There’s a lot to do about Walt Disney’s upcoming revenue. The Mouse House has seen its share price go completely crushing after its previous earnings showed slowing growth for the company’s Disney+ streaming service.
Adding to misery has been a political fight in Florida, causing the state to change Disney’s tax status and privileges. Disney has operated as a special district in Florida for 55 years. Other theme parks and resorts located in Florida do not operate under the same status as Disney, which is the state’s largest private employer.
The political hubbub did nothing for DIS inventory helpwhich is down 36% in the past six months, including a 29% pullback this year, to $112.09 per share.
Analysts who cover the business are looking Disney to report EPS of $1.07 and revenue of $18.93 billion when first-quarter numbers were released on May 11.
Stocks Reporting Earnings: Alibaba (BABA)
Finally, we’ll hear from Chinese tech giant Alibaba on May 12. The e-commerce company often compared to rival Amazon has seen its stock badly damaged over the past year, but for different reasons than other tech names. . the woes for BABA shares are due to a continuous crackdown on the company by the Chinese authorities.
Save antitrust fines and threats to delist BABA shares have shaken investor confidence. As a result, Alibaba shares have fallen 58% over the past year to recently trade at $95. It was a steep fall from grace for a stock that many analysts had named best of breed among Chinese stocks. However, there have been some encouraging signs in recent weeks that China’s crackdown on its tech sector may be coming to an end. Crossed fingers.
Analysts predict that Alibaba will report EPS of $1.12 on revenue of $30.15 billion for the first quarter.
Disclosure: As of the date of publication, Joel Baglole held a long position in DIS. The opinions expressed in this article are those of the author, subject to InvestorPlace.com publishing guidelines.