This is an exciting week for earnings releases, because for the first time this season smaller stocks get a chance to shine. The reason for this is simple: the biggest US companies always report their results early in the quarter. As a consequence, most of them have announced their earnings by now. The stage for the most part belongs to the players who are merely large and mid-size.
Unsurprisingly, earnings announcements of smaller companies mean more, not fewer trading opportunities. For every 100 investors who research Apple and Microsoft there may only be 1 who focuses on Wendy’s earnings. Like a fisherman who goes fishing away from big crowds, this investor has a big potential gain all to themselves.
Winners and laggards
It is no wonder that our AI expects most companies to beat their consensus estimates. After all, most companies do beat their so-called consensus numbers quarter after quarter. However, this makes situations where our models forecast a miss all the more noteworthy. There several such companies this week (see all of them in our spreadsheet). Here we highlight just two: we expect AMC Entertainment (AMC) to miss the EPS by about $0.10, and Sysco (SYY) to miss its revenue numbers by $126 million.
Below is a rundown of our AI’s EPS estimates for this week.
- Walt Disney (DIS): $0.71 Proximilar AI forecast vs. $0.55 Wall St analyst estimate consensus vs. $0.91 whisper number
- eBay (EBAY): $1.04 our AI estimate vs. $0.97 consensus vs. $0.98 whisper
- AMC Entertainment (AMC): -$1.03 our forecast vs. -$0.94 consensus estimate
- Nautilus (NLS): $0.36 ours vs. $0.30 consensus
- 3D Systems (DDD): $0.08 ours vs. $0.05 consensus
- Daqo New Energy (DQ): $3.15 ours vs. $3.05 consensus
- Wendy’s (WEN): $0.20 ours vs. $0.18 consensus
- Callaway Golf (ELY): $0.07 ours vs. $0 consensus
- Omeros (OMER): -$0.55 ours vs. -$0.58 consensus
- Sonos (SONO): -$0.07 ours vs. -$0.17 consensus
- Cara Therapeutics (CARA): -$0.50 ours vs. -$0.55 consensus
- Cyberark Software (CYBR): $0.12 ours vs. $0.02 consensus
Looking ahead to next week
The week of August 16 promises to be a bit quieter with fewer earnings releases than the last few weeks. The big theme of that week will be Retail: Walmart (WMT), Home Depot (HD), Lowes (LOW) and Target (TGT) will all be in the spotlight. We expect them all to outperform analyst estimates. In the case of Walmart and Target our models anticipate particularly impressive revenue numbers. See our latest forecasts for details.
Two big tech names whose earnings are worth highlighting are NVIDIA (NVDA) and Cisco (CSCO). We expect both of them to outperform the Wall Street EPS consensus moderately, by $0.11 and $0.03, respectively.