Earnings Week For My Investment Portfolio

It’s time for earnings!!

  1. Apple (AAPL)… Jul 21st
  2. Starbucks (SBUX)… Jul 23rd
  3. UA (Under Armour)… Jul 23rd
  4. BWLD (Buffalo Wild Wings)… Jul 28th

Some of the articles I read on earnings expectations mention companies will feel the pressure of forex during this quarter. Something for investors to be prepared for… regardless of how the market reacts, we need to review earnings as an indicator of how the business has performed and whether it is still on track for continued growth.

We need to remain disciplined investors no matter.

Apple – Q3 2015

Apple is set to report Q3 2015 financial results on Tues Jul 21, 2015 after markets close.

This earnings release will give us official sales on the Apple Watch… Apple’s 1st new product launch in a long time. While the Apple Watch is not expected to significantly increase Apple’s top and bottom line, it will be interesting to see how the product sold.

Apple has guided revenues of $46 to $48 billion (and gross margins of 38.5% to 39.5%). The market will likely expect continued strength in iPhone 6 sales. The larger screen iPhone 6 has proved to be a hit setting records upon its product launch. There will be lots of eyes on sales across China as it recently overtook the US for iPhone sales. As China continues to develop its infrastructure (mobile and high-speed networks), it could prove to be an even bigger market for Apple.

The market will be watching the numbers for the Apple Watch to see if the company can continue to innovate and launch products that the market goes crazy for. There was lots of anticipation prior to the product launch, and while the Apple Watch isn’t expected to move the needle on Apple’s bottom line, it will probably be more of a reflection on the company’s ability (and possibly even Tim Cook’s ability) to successfully launch a new and innovative product. Some might fear that sales are not as high as hoped, but I’m sure Apple is learning from the product launch and thinking about enhancements to the Apple Watch to increase its value.

You can visit Apple’s investor relations for more info.

Starbucks – Q3 2015

Starbucks is set to report Q3 2015 financial results on Thurs Jul 23, 2015 after markets close.

Picking apart Starbucks’ Q2 2015 earnings release, here’s what was reaffirmed:

  • Full year revenue growth 16-18%
  • Global comparable store sales growth of mid-single digits
  • Total of 1,650 net new store openings
    • Americas ~ 600 (half licensed)
    • EMEA ~ 200 (primarily licensed)
    • China / Asia Pacific ~ 850 (about 2/3 licensed)

GAAP forecasts:

  • Full year EPS $1.77 to $1.79
  • Q3 2015 EPS $0.39 to $0.40
  • Q4 2015 EPS $0.40 to $0.41

Non-GAAP forecasts:

  • Full year EPS $1.55 to $1.57
  • Q3 2015 EPS $0.40 to $0.41
  • Q4 2015 EPS $0.42 to $0.43

If you’d like some more info on how this company has done you can read my posts on Starbucks’ Q1 2015 and Q2 2015 results. Starbucks has really proven itself over the past year as a dominant player in the market with a continued focus on innovation and growth and its share price has definitely reflected that.

You can visit Starbucks’ investor relations for more info.

Under Armour – Q2 2015

Under Armour is set to report Q2 2015 financial results on Thurs Jul 23, 2015 before markets open.

Under Armour has been on a hot streak lately with sponsored NBA athlete Stephen Curry winning the season’s MVP award and sponsored golfer Jordan Spieth at the top of the scoreboards.

Hopefully Under Armour’s recent success with Stephen Curry will translate into a nice bump to their basketball shoe sales, a market Under Armour is looking to significantly expand. Basketball footwear is currently dominated by Nike but since when has that ever stopped Under Armour. Nike was a dominant footwear and apparel market leader and Under Armour has still managed to continue growing.

Another question out there could be how big can the golf business get for Under Armour? It seems like Under Armour got it right with sponsoring Jordan Spieth.

You should read CEO Kevin Plank’s Q1 2015 transcript opening comments on Under Armour’s recent performance and the compelling arguments for continued success.

In Q1 2015, Under Armour reaffirmed 2015 forecasts:

  • Full year revenues of $3.78 billion which is + 23% over 2014 (previous forecast was $3.76 billion or + 22% over 2014)
  • Full year operating income of $400-408 million or 13-15% over 2014 (previous forecast was $397-408 million)

In my post on why I added Under Armour to my investment portfolio, I include a comparison between Nike and Under Armour.

You can visit Under Armour’s investor relations for more info.

Buffalo Wild Wings – Q2 2015

Buffalo Wild Wings is set to report Q2 2015 financial results on Tues Jul 28, 2015 after markets close.

I recently added Buffalo Wild Wings to my portfolio on a huge market drop from its previous highs. Call it luck, perfect timing, or both… I simply looked at the charts and saw the market punishing a strong business. The only thing that made sense to me was to invest in BWLD. I’ve been fortunate already for the stock to be up nearly 10% from where I purchased it. While I expected a move higher from where I purchased the stock, I am hopeful for much more and I think BWLD has the potential to deliver.

My post on why I added BWLD to my investment portfolio includes a breakdown of:

  • Buffalo Wild Wings’ YOY financial performance
  • Initiatives to drive business growth
  • Reasons for the recent market selloff and what the company is doing about it

You can visit Buffalo Wild Wings’ investor relations and earnings estimates for more info.

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