As the earnings season begins to heat up, this week includes reports of a handful of closely watched tech darlings. Three companies to watch are electric car makers You’re here (NASDAQ: TSLA), social media giant Facebook (NASDAQ: FB)and iPhone maker Apple (NASDAQ: AAPL).
All three growth stocks have seen their stocks skyrocket over the past 12 months. Can the three Wall Street darlings meet the high expectations?
We already know that Tesla had a good first quarter when it comes to vehicle deliveries. The company delivered a record 184,800 vehicles during the period, up 109% year-over-year. The big question for investors, however, is how these strong sales translated into the electric car maker’s bottom line.
Analysts on average expect Tesla to report 72% revenue growth and non-GAAP earnings per share of $ 0.79, down from $ 0.23 the year before.
Tesla is expected to release its first quarter results after market close on Monday April 26.
The report a few days later, Wednesday April 28, is Facebook. Shareholders will seek strong growth in the company’s revenue as advertisers increase spending to capitalize on the reopening of the economy.
In Facebook’s fourth quarter of 2020, revenue grew 33% year-over-year, an acceleration from 22% growth in the previous quarter. Facebook’s management said in its fourth-quarter earnings call that it expects its first-quarter revenue growth rate to stay at around 33% or even accelerate slightly.
On average, analysts expect Facebook to grow revenue by about 33% year-over-year, with earnings per share dropping from $ 1.71 a year ago to $ 2.36.
Apple’s growth expectations in the company’s second quarter of fiscal 2021 are high. But much of that expected growth is simply due to the iPhone maker’s easy comparison a year ago. In the first three months of 2020, Apple’s business faced supply and demand issues when COVID-19 hit China. Revenue during the period only grew 1% year-over-year and earnings per share increased only 4%.
Given Apple’s easy comparison a year ago and the company’s overall business dynamics across all product segments and geographies, the consensus analysts estimate models revenue and profit by Apple stock in the second quarter of the fiscal year to increase 32% and 53% respectively.
Another key area that Apple investors should check out is the business services segment, which becomes increasingly important as it grows as a percentage of Apple’s total revenue. The segment, which includes App Store revenue, Apple’s subscription services like Apple Music and Apple TV +, and other recurring revenue streams, saw revenue increase 16% year on year on the other. Investors should look for equally strong (if not stronger) growth in this key segment in the second quarter of the year.
Apple releases its second quarter tax results the same day as Facebook after the market closes on Wednesday April 28.
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