Trade earnings of Google, Disney & GM

Trade earnings of Google, Disney & GM

2022-03-28 • Actualizada

The earnings season continues in the United States. Every week we tell you which large American companies are going to release their earnings reports. You can trade stocks of each of these companies with FBS. To learn more, please check this info.

Google

Date: February 4, 23:00 MT time

EPS forecast: $10.88

Revenue forecast: $38.91B

Google is expected to show solid growth in earnings and revenue. The company has done well in 2018 but the stock is trading close to the levels at which it started last year. As a result, a solid report may give it the strength to get higher.

If you want to get a deeper insight into how much Google will cost in the future, visit the “Investor Relations” section of Alphabet website (Alphabet is Google’s parent company) after the report is published. Check the entire report for this info:

  • Revenue growth for Google’s own sites and apps (mobile search and YouTube). Forecast: +20%.
  • Paid ad clicks and average advertisement prices (i.e. cost per click, or CPC) the higher, the better.
  • Revenue growth in other sectors (Google and Nest-branded hardware, Google Play transactions, the G Suite, and the Google Cloud Platform). Forecast: +37%.
  • Trends in Traffic Acquisition Cost (TAC). TAC is an important income source for Google, so the bigger the numbers, the better. Forecast: +18%.
  • Capital spending: how much is Google investing in infrastructure? Forecast: +31% y/y. Higher spending is an important element of the company’s success in the long run.
  • The negative impact of the strong dollar in Q4.

The stock needs to overcome resistance at 1116 (50-week MA), to get a chance to rise to 1136 and 1160/1170. Support is at 1095 and 1086 (100-day MA) ahead of 1056 (50-day MA).

google.png

Disney

Date: February 5

EPS forecast: $1.54

Revenue forecast: $15.07B

The market doesn’t expect any spectacular numbers from Disney’s earnings report. The reason is that the company’s earnings will be compared with the results of the same period last year when it reported record revenue and earnings thanks to the timing of major movie releases and the favorable tax reform impact.

The stock’s dynamics upon the release of the report will depend largely on the company’s outlook for 2019. If it's optimistic (and it might be as it’s getting ready to the acquisition of Fox and the launch of Disney Plus streaming service), the price can test higher levels. At the same time, costs will likely increase and this will have a negative impact on future revenue.

Notice that the current value of Disney’s stock isn’t low. Resistance is at 113.25 (100-day MA), while support is at the weekly MAs (108.55 and 107.40). The 50-day MA is about to fall below the 200-day MA a negative sign.

disney.png

GM

Date: February 6

EPS forecast: $1.24

Revenue forecast: $36B

Most analysts see the potential for a positive surprise. The company’s sales declined in Q4. Nevertheless, the largest US automaker is trying to shift its sales towards more profitable cars an expand its presence in China.

Advance above 39.60 will open the way up to 40.85. On the downside, support is at 37.70 and 37.00.

gm.png

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