5 Stocks To Watch This Week 11-24-14


Monday - Palo Alto Networks

Network security company Palo Alto Networks (PANW) is set to report earnings on Monday after the market closes. Contributing analysts on Estimize are expecting Palo Alto Networks to top the Wall Street EPS consensus by a penny per share on the bottom line and slightly over $4 million (2.4%) in revenue.


Over the past 2 years Palo Alto has consistently reported in-line or a 1 cent above the EPS consensus from the Street. 6 of the previous 8 reports have been 1 cent better, and 2 came in-line.

Coincidentally the 2 periods in which Palo Alto failed to maintain its quarter of quarter sequential earnings growth were both in its 4th fiscal quarter of the year. On Monday the Estimize community expects Palo Alto to shake of its 1 quarter stretch of flat earnings and get back to increasing profits by 1 cent per share. 

Tuesday-Hewlett Packard Company

Last quarter HP (HPQ) announced that it will be dividing itself into two separate companies in one of the biggest tech breakups all time. One of the two companies will be dedicated to enterprise technology including servers and data storage equipment, the other will focus on selling printers and personal computers.

The split up is expected to be wrapped up by October of 2015 and the optimistic hope that by narrowing the two sides’ focus they may be able reinvigorate expansion after a long period of stagnation. image

In the past couple of years HP has struggled with earnings, only reporting an advancement in the 3 most recent quarters while going up against soft comparable quarters caused by drops in 2013. Again this quarter the Estimize community expects earnings per share that are higher than last year’s results, but lower than the same quarter EPS reported in 2012.

Tuesday - Tiffany and Co.

Jewelry retailer Tiffany’s (TIF) has put up 2 impressive earnings beats in a row now and contributing analysts on Estimize are expecting another 5 cent beat on Tuesday.  


Last quarter worldwide net sales were up 7% and same store sales increased by 3% which the company cited as due to strength in the Americas and Asia-Pacific regions. Same store sales in the Americas were up 9% last period which helped the company insulate itself from the strong US dollar which hindered profits from international sales at other retailers due to the high cost of repatriating currency.

This quarter the Estimize community is looking for Tiffany’s to report 14% year over year earnings growth and 7% sales growth. This compares to 16% yoy earnings growth last quarter and consistent revenue revenue growth of 7%.

Tuesday - Ctrip.com

Chinese internet company Ctrip.com (CTRP) is set to announce earnings Tuesday. It’s been a huge year for Chinese internet companies including massive IPOs from Alibaba (BABA) and JD.com (JD). Those big names have already made huge returns, but many of the smaller companies are performing even better. It’s been a volatile year for Ctrip, but year to date the stock has climbed 19%.


(Graph from ChartIQ Visual Earnings)

CTrip is a mainland China focused online travel company which serves the world’s most populous nation’s emerging middle class. Over the past 4 quarters the company’s’ revenues have increased between of 35% and 37% each quarter on a year over year basis.

Profits have been up and down as the company has spent aggressively on advertising. Last quarter CTrip set aside $77 million for sales and marketing.


Although costs are higher and earnings have slid in the past 2 quarters, reservation volume was up 64% compared to the same quarter of last year, signaling healthy growth. On Tuesday the Estimize community is looking for continued sales growth of 35% while earnings drop 40% year over year, but still beat the Street’s view by 2 cents per share.

Wednesday - Deere and Co.

The morning before Thanksgiving the John Deere (DE) tractor company will announce its quarterly earnings. So far this quarter, the industrials have been doing great increasing earnings by an average of 12.5%. However, Deere is not expected to follow suit by crushing last year’s numbers.  


Deere and Co. has surpassed the Estimize consensus in each of the previous 5 quarters and often by large margins. On Wednesday the Estimize community is setting the bar 9 cents higher than Wall Street is. If recent memory serves as an accurate guide, Deere shouldn’t have a problem beating those estimates.

The Estimize community is forecasting earnings of $1.68 per share which would represent a 20% decline compared to the company’s fourth fiscal quarter of last year. Over the past 2 quarters earnings have decreased 4% and 9% respectively and Estimize contributors expect the rate of decline to accelerate on Wednesday. Shares of Deere are down about 5% on the year.

Disclosure: There can be no assurance that the information we considered is accurate or complete, nor can there be any assurance that our assumptions are correct.

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