This is shaping up to be an interesting week, with more than 1000 companies expected to report quarterly results, including the latest cult/fad stock Beyond Meat Apple (BYND) (Monday), Apple (AAPL) (Tuesday), and General Electric (GE) (Wednesday). I of course will be focusing attention on the reports of some lesser known and followed names including Fitbit (FIT) and Bloomin' Brands (BLMN) (Wednesday), Kulicke & Soffa (KLIC) (Thursday), and Newell Brands (NWL) (Friday).
Expectations are not all that high for Fitbit, with consensus estimates calling for an 18 cent loss on revenue of $312 million. The markets continue to remain skeptical of the name, which has posted positive earnings surprises for the past five consecutive quarters, and eight of the last nine. FIT, which closed at $4.35 on Friday, ended last quarter with $644 million or $2.55 per share in cash and short-term investments, is down 20% over the past year. While I am not one to focus too much on quarterly results, FIT has to show something to entice back some of the growth investors that pushed shares into the high $40's in 2015, not that I believe FIT will see those levels again.
Bloomin' Brands, whose brands include Outback Steakhouse, Bonefish Grill, and Carrabba's Italian Grill, is expected to earn 35 cents on revenue of $1.04 billion. Currently one of the cheaper restaurant names trading at just under 10.5x next year's consensus estimates, BLMN has beaten bottom line estimates six of the past seven quarters. Shares have done little over the past year performance-wise, and currently yield 2.2%. BLMN has been the target of activist investors in recent years, not surprising given the stocks tepid performance since its August 2012 IPO.
Kulicke & Soffa, which has been a double-net in the past, and currently trades at 2.42x net current asset value, is expected to earn four cents/share on revenue of $128.7 million. The company has exceeded earnings estimates for the past four consecutive quarters, and six of the past seven. The cash-rich name ended last quarter with $627 million or $9.50 per share in cash and short-term investments. Currently yielding 2.1%, KLIC initiated a dividend in 2018, and has been buying back stock as well. Over the past year, the company has reduced shares outstanding by more than 6%. KLIC currently trades at about 14.5x next year's consensus estimates, but the range in estimates is wide, from a high of $2.49 to a low of $1.22.
Reclamation project Newell Brands, which has been reshaping itself by selling off businesses, paying down debt, and buying back stock, is expected to earn 36 cents/share on revenue of $2.12 billion. It's been a rough ride for the stock, which is down about 50% over the past year. Currently yielding 6.5%, NWL trades at just under 10x next year's consensus estimates. The company has reduced debt by about $3.1 billion over the past year, to last quarter's $7.3 billion, and reduced shares outstanding by 15% over the same time frame. I, for one, am looking forward to seeing further progress on both fronts.
Welcome to what should be a very exciting week.
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