Although first-quarter earnings season is winding down, a handful of major companies is reporting their earnings results this week. Some of the most eagerly anticipated ones are Airbnb (NASDAQ: ABNB), Walt Disney Corporation (NYSE: DIS), Roblox Corporation (NYSE: RBLX) and Bumble Inc (NASDAQ: BMBL).
Monday – travel, space travel and gaming
Just week after Expedia (NASDAQ: EXPE) told us that pleasure trips are filling hotels, but business excursions haven’t come back much at all because everybody’s still using Zoom, the largest US hospitality company, Marriott International Inc (NASDAQ: MAR) reported a loss of 3 cents per share or net loss of $million today before the market opened.
Virgin Galactic Holdings (NYSE: SPCE) will need its report to alleviate cash burning concerns.
A gaming platform geared toward pre-teens that made its IPO roughly two months ago, Roblox Corporation. Roblox has been a prime beneficiary of the pandemic that kept kids indoors but how players respond when alternate activities outside of the home are permitted will have a big say in the company’s future.
Tuesday – Palantir
Palantir Technologies (NYSE: PLTR) needs to give investors any kind of good news on Tuesday as there are big questions that still surround this company, including exactly what kind of company it is – a software company or a consulting firm? Although it is not ‘new’, the company is fresh to the public markets as it only executed its direct listing at the end of September and this earnings release is its third so far.
Wednesday – dating and cannabis
With vaccine rollouts and eased restrictions, analysts have high projections for the women-centric app company that rewrote the rules of the online dating game. When it smashed expectations last March, Wall Street started paying attention on Bumble Inc, but this report will be a true test as it attempts to beat estimates again.
Unlike many retailers, GrowGeneration Corporation (NASDAQ: GRWG) has expanded its guidance as the country reopens, estimating it can earn $415 million to $430 million in revenue this year, more than double 2020 levels. As a reminder, its 2020 revenue of $193 million soared 143% compared to 2019 levels thanks mainly to robust same-store sales growth. With 53 locations and an e-commerce site while expanding its selection of private label products, GrowGeneration is doing all the right things to lead the way as the cannabis industry rapidly continues to expand. With the addressable market and its product selection, it aims to have 100 stores by 2023 and operate in all 50 states. Although it has many competitors, even larger retailers such as Home Depot (NYSE: HD) cannot match its selection or its private label products.
Thursday – Chinese e-commerce giant and global entertainment giant star along food delivery and online marketplace for lodging
Alibaba (NYSE: BABA) continues to trade at a discount despite the fact that the company has demonstrated high-growth and high-profitability characteristics that are consistent with its American FAANG peers which enjoy premium valuations. Before markets open on Thursday, investors will want to know what it takes to revive the shares. With the Chinese economy on a path towards revitalization, Alibaba profits will also continue its rapid growth, given that the company controls about two-thirds of China’s e-commerce market through Taobao and Tmall.
Disney’s got the best story going forward. In March, management announced the record-breaking Disney Plus is expected to have 230 million and 260 million global subscribers by the end of fiscal 2024. While that goal would be impressive, if achieved, it will require significant investment which may impact profits so investors will want to hear more about the long-term growth strategy as the direct-to-consumer business segment is expected to become profitable by that year as well whereas it lost $2.8 billion in fiscal 2020.
DoorDash Inc (NYSE: DASH) might have been a big winner from the pandemic but being a cost-intensive business, its margins will likely be squeezed by elevated marketing and R&D expenses. Also, there will be pricing pressure as regulators have capped the fee restauranters can pay to delivery service providers. The market reopening, encouraged by the vaccination drive, is directly reducing the consumer’s reliance on digital platforms for ordering food, which can affect revenue performance in the future. However, the food delivery service company is seeing stable order volumes in certain markets where COVID restrictions have been eased which is a good sign.
A newly public vacation rental company Airbnb’s results are closely tied to the pace of the economic recovery. Airbnb might tell a terrific story as it’s story isn’t about business travel but about pleasure and pleasureis booming. With more individuals now vaccinated and itching for getaways, its recovery prospects should be brighter at the very least.
The recently listed Coinbase Global Inc (NASDAQ: COIN) is set to hold its first-quarter earnings conference call after it posted stellar earnings. With a total revenue of approximately $1.8 billion and net income of roughly $730 million to $800 million, Coinbase also announced a big milestone in regulated cryptocurrency trading with the inclusion of PayPal (NASDAQ: PYPL) as a payment method for its US customer base. The crypto businesses is booming but this world remains a mystery we’re still unraveling.
Friday- ending the week with retail sales.
One of the key reports investors will be watching this week will be the April retail sales report from the Commerce Department due out Friday that will reveal the strength of consumer spending. Most pundits are expecting some payback after an exceptionally strong March report, when spending had been boosted by the latest round of stimulus checks.
So far, companies have been smashing expectations this earnings season. Corporate profits easily exceededestimates as demand rebounded from the worst points of the pandemic last year. On Friday, FactSet revealed that about nine in 10 S&P 500 companies had reported first-quarter results, and 86% of them topped expectations. This week, we’ll see if this chapter can end on the same positive note.
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