Upcoming Earnings Reports to Watch: ATVI, KO, CSCO

The market’s remarkable New Year momentum cooled this week, but major indexes managed to notch a rally into the green on Friday afternoon, easing some concerns about fresh trade uncertainties ahead of the weekend.

Wall Street is also over the hump of Q4 earnings season, as more than half of the S&P 500’s member companies have now filed their latest results. Returns have been impressive during earnings season despite mixed numbers and shaky guidance in certain industries, but there certainly feels like enough marquee reports yet to come that could paint a clearer picture of this season’s overarching theme.

With that said, investors should remember to use the Zacks Earnings Calendar to plan out their schedules for earnings, dividend announcements, and other important financial releases. This handy tool is your perfect one-stop-shop to properly prepare for the market events that will have an impact on your own portfolio.

Today, we’re going to take a look at a few of the upcoming week’s most important reports. This is an incomplete list, no doubt. The companies below, in our view, simply carry the heaviest narratives into their reports, and they should serve as great indicators for their broader industries.

Check out our top earnings reports to watch for the week of February 11:

1. Activision Blizzard, Inc. (ATVI)

Activision Blizzard was battered this week amid weak results from industry rivals EA EA and Take-Two TTWO, which both cited continued pressure from free-to-play games such as Fortnite as headwinds for their businesses. Moreover, ATVI has lost about half its value in the past four months as investors have grown more skeptical about traditional video game publishers.

The maker of Call of Duty will try to revert that trend with a better report of its own next week. Analysts are expecting adjusted earnings of $1.29 per share, according to our latest Zacks Consensus Estimate. This consensus, which represents year-over-year growth of 37%, has moved a penny lower in the past 60 days as some downward estimate revisions have been published. Revenue is expected to be $3.1 billion, up nearly 16% from the year-ago quarter.

 

2. Cisco Systems, Inc. (CSCO)

Cisco shares have rallied more than 15% from their Christmas Eve lows and are heading into the report date with impressive momentum. The IT giant will publish its report after the market closes on Wednesday. It has met or surpassed earnings estimates in every quarter we have on record, dating back to late 2015.

Cisco will look to continue that streak by outperforming a consensus estimate of $0.72 in earnings per share. This consensus has moved a penny higher over the past quarter and would mark growth of 14% from the prior-year period. Revenue estimates are calling for net sales of $12.4 billion, up about 4% year over year.

 

3. The Coca-Cola Company (KO)

Coca-Cola is scheduled to report its latest results before the opening bell on February 14. KO shares are up about 5% in the past month but are just about flat in the past 12 weeks. The soft beverage icon’s annual dividend is yielding 3.2% right now. The company has a multi-year history of raising its payout and could be set to do so again.

Based on our latest Zacks Consensus Estimates, it looks like analysts are expecting earnings of $0.43 per share and revenue of $7.1 billion. These results would represent year-over-year growth rates of 10% and -6%. The earnings consensus has moved a penny higher in the past 60 days.

 

 

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