We’re only halfway through the week and the biggest earnings aren’t even happening until tomorrow. With 180 S&P 500 (NYSEARCA: VOO) companies reporting this week alone, including the ‘Big Four’: Apple (NASDAQ: AAPL), Amazon (NASDAQ: AMZN), Alphabet (NASDAQ: GOOG), and Facebook (NASDAQ: FB).
However, that lot is tomorrow’s problem. Today we have a whole host of earnings to look forward to, and while the likes of PayPal (NASDAQ: PYPL) and Spotify (NYSE: SPOT) didn’t make the cut for this list, they are still worth keeping an eye on.
This is the big one for the airline and manufacturing industry as Boeing (NYSE: BA) is among the biggest employers and exporters in the U.S. However, there is no hiding from the damage caused by COVID-19 to the travel sector, where Boeing makes 42% of its total revenue — its largest segment.
After United Airlines (NYSE: UAL) reported a $2 billion loss in Q2 last week, and with other airlines following a similar trend, things were always going to be rough for Boeing. Analysts expect the aerospace giant to report a loss of $2.93 per share on $13.89 billion in revenue, down from its loss per share in Q1 of $1.11 on revenue of $16.9 billion.
The roughly $100 billion-valued company is prone to big swings following an earnings report, so investors should be wary of how turbulent it will get depending on the results of its earnings call, and more importantly, its guidance. As such an important standalone business in the travel and manufacturing industry, Boeing’s results can give investors some idea as to how things will look for travel going forward.
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The first of the big e-commerce winners to report will be Shopify (NYSE: SHOP) when it shows us its books before the market opens today. Along with Amazon, Etsy (NASDAQ: ETSY), MercadoLibre (NYSE: MELI), Shopify has enjoyed a boom in e-commerce business thanks to stay-at-home orders, with its stock soaring 141% year-to-date (YTD).
Just by looking at its pre-market performance this morning — up 2.23% as of the time of writing — it’s obvious that investors are anticipating a strong Q2 report and expect its stock to soar. Shopify is prone to volatility following an earnings call, and is actually down more than 8% from its all-time high from June, so there could be some room to make up today.
Analysts are expecting Shopify to break even with $0.00 per share on revenue of $455.95 million, which is less than its Q1 revenue of $470 million, reportedly due to a decline in online shopping growth near the end of the quarter. It will be interesting to see how the company has dealt with the closure-risk to its primary audience of small to medium-sized businesses, and will give us a good indication of how e-commerce trends have performed in Q2 before Amazon reports tomorrow.
Finally, we have a company that is expected to hold the mantle of ‘the future of medicine’, Teladoc (NYSE: TDOC) will reveal its Q2 report after market close tonight. There is a lot of bullish sentiment behind this stock: over the last 3 months, EPS estimates have seen 9 upward revisions and 1 downward, while revenue estimates have seen 21 upward revisions and 0 downward.
With its stock price up 155% YTD, analysts are expecting revenue to grow almost 70% to $220.49 million, with losses per share to be around $0.22. This is after its knockout Q1 earnings back in April which saw revenue top $180 million with loss per share coming in at $0.40.
Teladoc has beaten revenue estimates in every single quarter over the past 3 years, but has only surprised on EPS 63% of the time, so today’s earnings call will be one to watch for anyone looking to get a glimpse into the future of remote medicine.
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Jamie is the Content Editor here at MyWallSt. His favorite stock is Apple, which is also the first stock he ever bought. Jamie is not only a big fan of its products, but he believes that the tech giant has a whole lot more to give the world, and hasn't even scraped the surface of its potential.