Earnings Preview
In this weeks earning preview we have a few big names looking to report earnings that are worth keeping an eye on. Tilray, Alibaba, Nvidia and Canopy Growth all report this week.
Marijuana stocks have had a tough year so far, but with recent earnings from Aphria and Cronos Group posting strong numbers that could be indicative of further positive earnings.
Tilray
Ticker: $TLRY
Earnings Time: Tuesday, August 13 after market close
Expectations: EPS estimate -$0.27, Revenue estimate $40.25 million
Brief Overview: Tilray, like most marijuana stocks this year, has been falling most of 2019 with shares down almost 40% YTD. Earnings on Tuesday could help give this stock a boost, and the sector as a whole, if they can surprise everyone and post a beat.
Unfortunately, last quarter earnings were a miss by $0.02 but revenue beat expectations by $2.77 million. Prices were little changed following this report.
Profile: Tilray, headquartered in Nanaimo, Canada cultivates and sells medical and recreational cannabis through a portfolio of brands that include Canaca, Dubon, and Manitoba Harvest. The bulk of Tilray’s sales are in Canada, but the company also sells CBD Products in the U.S. through a partnership with Authentic Brands Group and exports medical cannabis globally from its production facilities in Canada and Portugal. Tilray also has a partnership with AB InBev to develop cannabis-infused drinks.
Nvidia
Ticker: $NVDA
Earnings Time: Thursday, August 15 after market close
Expectations: EPS estimate $1.14, Revenue estimate $2.55 billion
Brief Overview: Nvidia is another big name to watch closely this week. They topped expectations last quarter but share prices still slid lower.
Nvidia has been in a bit of a pickle since demand for their cryptocurrency mining processors and gaming GPUs has fallen off significantly. However, the company is optimistic in their strategies and growth opportunities especially if demand picks back up.
Shares of Nvidia are slightly up on the year so this could play a large role on whether or not the company can stay in the green for the year or not.
Profile: Nvidia is a leading designer of graphics chips that enhance the experience on computing platforms. The firm’s chips are used in a variety of end markets, including high-end PCs for gaming, data centers, and automotive infotainment systems. In recent years, the firm has broadened its focus from traditional PC graphics applications such as gaming to more complex and favorable opportunities, including artificial intelligence and autonomous driving, which leverage the high-performance capabilities of the firm’s graphics processing units.
Canopy Growth
Ticker: $CGC
Earnings Time: Wednesday, August 14 after market close
Expectations: EPS estimate -$0.31, Revenue estimate $84.6 million
Brief Overview: Canopy Growth is in the same boat as Tilray with shares taking a beating the past few months, but they are slightly up on the year. They report earnings on Wednesday so we will see if they are able to surprise investors and give a much needed boost to their share price.
Last quarter they missed on earnings per share by $0.59 but topped revenue expectations by $11.94 million. Aphria and Cronos Group both posted strong quarters so that could bode well for Canopy Growth. We’ll have to wait and see!
Profile: Canopy Growth, headquartered in Smiths Falls, Canada, cultivates and sells medicinal and recreational cannabis, and hemp, through a portfolio of brands that include Tweed, Spectrum Therapeutics, and CraftGrow. Although it primarily operates in Canada, Canopy has distribution and production licenses in more than a dozen countries to drive expansion in global medical cannabis and also holds an option to acquire Acreage Holdings upon U.S. federal cannabis legalization.
Alibaba
Ticker: $BABA
Earnings Time: Thursday, August 15 before market opens
Expectations: EPS estimate $1.49, Revenue estimate $15.8 billion
Brief Overview: Alibaba reports on Thursday before the market opens and will be an interesting one to watch with China and U.S. tensions at extremes. The impact is unknown so far, so analysts will be digging through post-earnings commentary for clues that could guide future decisions.
If BABA can post a surprise earnings beat, we could see shares surge. The main thing to watch here is the impact trade tensions have had on the companies ability to conduct business.
Profile: Alibaba is the world’s largest online and mobile commerce company, measured by GMV (CNY 5.7 trillion/$846 billion for the fiscal year ended March 2019). It operates China’s most-visited online marketplaces, including Taobao (consumer-to-consumer) and Tmall (business-to-consumer). Alibaba’s China marketplaces accounted for 68% of revenue in fiscal 2019, with Taobao generating revenue through advertising and other merchant data services and Tmall deriving revenue from commissions. Additional revenue sources include international retail/wholesale marketplaces (7%), cloud computing (7%), digital media and entertainment platforms (6%), Cainiao logistics services (4%), and innovation initiatives/other (1%). Mobile GMV accounted for roughly 85% of consolidated GMV in fiscal 2018.
