Michael Kors & Alibaba Come In Strong, TripAdvisor Reports Tonight
Before today’s opening bell, we got reports from a couple of highly anticipated companies. Alibaba (BABA) released its first quarterly results since its record IPO in September. The company reported EPS of $0.45, beating the Street’s expectation by $0.02 but missing the Estimize consensus. The stock was briefly punished in pre-market trading, dropping 1%, but since has rebounded to 2.5%. The Chinese internet behemoth saw the number of annual active buyers grow to 307 million, gaining 105 million users from the same time last year, an increase of 52%. Merchandise volume was also a bright spot.
Impressive results were also seen from Michael Kors Holdings (KORS) this morning. Earnings per share came in at $1.00, beating the Wall Street consensus by $0.12 and the Estimize consensus by $0.09, representing growth of 41% from the year-ago quarter. Revenues also squashed expectations, reporting $1.06B, higher than our estimate of $981.7M and up 43% year-over-year. The company gave aggressive EPS guidance, expecting it to fall in a range of $1.31 - $1.34 for Q4, and $4.13 - $4.18 for the full year. Revenues for the next quarter are expected to be in the range of $1.27B - $1.30B, assuming same store sales posts a low double digit increase, with the full-year outlook for $4.3B - $4.4B.
After the bell, the final internet retailer in the S&P 500 will release results. TripAdvisor (TRIP) is looking for EPS of $0.61 and revenues of $347M. The overall industry has done incredibly well this season, with profits growing 26% and sales up 22% year-over-year.
How Are We Doing?
Expectations for S&P 500 earnings growth for the third quarter stand at 12.0%. Revenues are anticipated to come in with 4.6% growth. All 10 sectors are anticipated to post positive YoY growth on both the earnings and revenue front.
Leaders
Earnings:
Energy (14.8%). Notable industry: Oil, Gas and Consumable Fuels (15.1%)
Health Care (14.4%). Notable industry: Biotechnology (45.1%)
Consumer Discretionary (14.1%). Notable industry: Internet Retailers (26.0%).
Revenues:
Health Care (12.1%). Notable industry: Biotech (38.9%).
Information Technology (7.4%). Notable industry: Software (15.7%)
Laggards
Earnings:
Utilities (4.1%). Notable industry: Electric Utilities (1.5%).
Telecommunication Services (2.3%): All five companies are within Diversified Telecom Services. Only Verizon posted yoy growth.
Revenues:
Energy (0.1%). Notable industry: Oil, Gas and Consumable Fuels (-0.7%).
Materials (2.4%). Notable industry: Paper & Forest Products (-18.3%).
Beat/Miss/Match
Earnings: 372 companies have reported thus far, 56% have beaten the Estimize consensus, 33% have missed and 11% have met. This is compared to Wall Street estimates, of which 73% of companies have beat on the bottom-line, 20% have missed and 7% have met.
Revenue: 52% have beaten the Estimize consensus, 48% have missed, and 0% have met. For revenues, 59% of companies have beat the Wall Street estimate, while 41% have missed.
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.