Earnings Report 7/29-8/2

Zynga Inc.
Zynga Inc (ZNGA) reports earnings Jul 31 after market close.

 

 

There has been little activity with insiders regarding insider buying/selling. Zynga COO, Matthew Bromberg, exercised three of his option contracts. On 5/16 Bromberg exercised $253k, on 6/18 he exercised $252k, and on 7/16 he exercised $261k. The only other activity was from Chief People Officer, Jeffrey Ryan, sold $224k worth of stock. http://openinsider.com/screener?s=znga

 

Zynga has received two upgrades since last earnings, on May 2nd, Robert Baird upgraded ZNGA from Neutral to Outperform and increased the target from $5 to $8. On May 30th, Stephens upgraded ZNGA from equal weight to overweight. https://elite.finviz.com/quote.ashx?t=ZNGA

 

Nearly 10,000 August call buyers of ZNGA ahead of earnings, stock has reacted to it and moved, but could be bullish with the report next week.

 

 

Electronic Arts Inc.
Electronic Arts Inc. (EA) reports earnings on July 30 after market close.

 

 

There has been some recent insider selling of EA stock. CEO, Andrew Wilson, exercised an option contract worth almost $3 million on 7/2. There were many other sellers on 7/2 as well consisting of Chief People Officer, Chief Studios Officer, EVP of Strategic Growth, and CMO who all sold stock for a total amount of $1.7 million of stock. http://openinsider.com/screener?s=EA

 

With the current stock price at $88.85 taking a look at ratings many institutions see positive for the stocks future. On 7/2 BMO Capital Markets reiterated its rating of outperforming the market and have a price target from $116 to $130. Citigroup also initiated a neutral rating with a price target of $102. Nomura and the Benchmark Company both have buy ratings with price targets of $120. https://elite.finviz.com/quote.ashx?t=ea&ty=c&ta=1&p=d

 

The market expects EA to deliver a year over year decline in earnings on lower revenues when it reports results for Q2. The biggest affect on the stock price will be whether it beats or meets these poor estimates. EA is expected to post EPS of .01 which represents a year over year change of -96.2 %. Revenues are also expected to decline 9.2% to $725 million. https://finance.yahoo.com/news/earnings-preview-electronic-arts-ea-143202687.html

 

 

Altria Group, Inc.
Altria Group, Inc (MO) reports earnings July 30 before market open. 

 

 

There were two recent insiders selling shares of MO. On 5/6, SVP of Tobacco Products, Jody Begley sold $175k of shares. There was also a VP, Hildebrandt Surgner, who sold $105k of shares. http://openinsider.com/screener?s=mo

 

Altria has earned a recent upgrade from Goldman Sachs from a Neutral to a Buy rating as well as a target price of $59 a share. https://elite.finviz.com/quote.ashx?t=mo&ty=c&ta=1&p=d

 

Altria, who owns JUUL, is getting blasted by lawmakers for being responsible for the recent teen vaping “epidemic”.  This negative news shouldnt affect stock price unless there are lawsuits and fines to be paid by Altria. There are accusations of targeted marketing to teens and could be possible problems for the products future. https://www.cnbc.com/2019/07/24/juul-on-blast-in-congressional-hearing-over-alleged-role-in-teen-vaping-epidemic.html

 

 

Apple Inc.
Apple Inc (AAPL) reports earnings July 30 after market close. 

 

 

Apples (AAPL) insiders have been quiet on the buying/selling. There have only been two recent sellers. Arthur Levinson, an Apple director, exercised an option to sell $7.4 million on 5.7. On 5/6, Apple COO, Jeffrey Williams, sold $11.9 million in stock which is a large sale. http://openinsider.com/screener?s=AAPL

 

AAPL has been under watch with the tensions between China and the US and hoping that Iphone sales has remained up through everything. Many other companies that have reported, who deal with China trade, have lowered guidance so this is possible for Apple. However, Apple did recently announce a $1 billion purchase of Intel’s INTC smartphone modem business that included 2,200 intel employees. https://finance.yahoo.com/news/buy-apple-aapl-stock-earnings-234011942.html

 

A major part of the Apple brand is loyalty. Apple has counted on users returning to buy each new IPhone every year. A recent survey found that only 73% of current iPhone users who will  be upgrading their device in 2019 will get another iPhone. This is the lowest rate since 2011. Last quarter earnings report, over 50% of Apples earnings came from iPhone sales. https://investorplace.com/2019/07/iphone-loyalty-trends-are-bad-news-for-apple-stock/

 

 

Sprint Corporation
Sprint Corporation (S) reports earnings on July 31 after market close.

 

 

There hasn’t been much recent activity in the buying/selling of Sprint stock from Insiders. The only activity has been from Sprint CTO, John Saw, who has sold and exercised four times through the month of May. Saw exercised an option worth $1.3 million, and sold about $370k worth of stock shortly after. http://openinsider.com/search?q=s

 

Sprint (S) and T-Mobile US (TMUS) have been all over the news because of the big merger deal between them. The justice department is set announce a settlement that will require to sell assets to Dish Network Corp to keep competition in the market. There could be mentioning on this news in the earnings report that could move the stock. This deal has been in the making for over a year and is finally coming to a close.  https://finance.yahoo.com/news/t-mobile-said-poised-win-034259488.html

 

 

Spotify Technology S.A.
Spotify Technologies (SPOT) reports earnings July 31 before market open.

 

 

Macquarie has raised Spotify (SPOT) target price from $170 to $200 with thoughts that the stocks short term performance is underestimated. With SPOT’s international expansion as well, Gibson Salati, an Analyst, believes that the long term benefits are undervalued. Salati also believes that SPOT has a much better business model when it comes to comparing the global streaming platforms.  https://seekingalpha.com/news/3480115-spotifys-target-raised-undervalued-position

 

While Macquarie believes in the upside, Evercore ISI thinks otherwise. Analyst Kevin Rippey downgraded the stock this week and believes that Spotify wont be able to generate the level of gross profit demanded by Wall St. https://www.hypebot.com/hypebot/2019/07/top-analysts-totally-disagree-on-the-future-of-spotify.html?asset_id=6a00d83451b36c69e20240a499c788200d