Earnings to watch next week: Marriott, Electronic Arts, Alibaba and Walt Disney in focus

fXEmpire.com –

Earnings calendar for the week of May 10th

Monday (May 10)

IN THE SPOTLIGHT: MARRIOTT

Marriott International, an American multinational, diversified hospitality company, is expected to report earnings of $0.03 per share for the first quarter, down over 88% from a year ago of $0.26 per share in the same quarter of the previous year.

The US hotel operator’s revenue would plummet by about 50% to $2.36 billion. In the most recent quarter, however, the company delivered an earnings surprise of over 20%.

“The world’s largest hotel brand is creating economies of scale, but the spread of COVID-19 will put pressure on unit growth. With the stock trading near its historical average multiple, we see too much risk/reward to warrant a recommendation, with upside/downside action dependent on how severe and fast post-COVID-19 business trends return to normal ‘ noted Thomas Allen, equities analyst at MorganStanley.

Tuesday (May 11)

IN THE SPOTLIGHT: ELECTRONIC ART

Electronic Arts, one of the world’s largest video game publishers, is expected to report fourth-quarter earnings of $1.04 per share, down more than 3% from a year earlier of $1.08 per share in the same quarter, a equals one year ago.

The world’s largest video game publishers would see revenue growth of about 15% to about $1.39 billion. However, over the past four quarters, the company has delivered an earnings surprise of over 500%.

“For the fourth quarter of fiscal 2021, EA expects GAAP revenue of $1.317 billion, cost of sales of $302 million and operating expenses of $837 million. EA expects a loss of 7 cents per share for the fourth quarter. Net bookings are expected to be $1.375 billion, up $75 million from the previous forecast. For fiscal 2021, EA expects revenue of $5.6 billion, cost of sales of $1.477 billion and earnings per share of $2.54,” according to analysts at ZACKS Research.

Wednesday (May 12)

Thursday (May 13)

IN THE SPOTLIGHT: ALIBABA, WALT DISNEY

ALIBABA: China’s Alibaba Group Holding, the world’s largest online and mobile e-commerce company, is expected to report fourth-quarter earnings per share of $1.82, up over 40% from the year-ago quarter is equivalent to. China’s largest online retailer’s revenue jumps more than 70% to $27.7 billion.

“Increased investment in Taobao Deal and Grocery for user acquisition in less affluent regions in China should support long-term growth in core e-commerce business. Merchant marketing budgets will continue to shift online as reliance on e-commerce increases and better conversion occurs. Alibaba’s advertising resources remain under-monetized,” noted Gary Yu, equities analyst at Morgan Stanley.

“The digitization trend in China will also support the growth potential of AliCloud. The gradual margin expansion will be a long-term profit driver. We see limited short-term catalyst, but F22e’s P/E valuation remains attractive. We also see further downside support from additional disclosures to separate losses from new investments from core profitable e-commerce businesses.”

WALT DISNEY: The world’s leading entertainment and information producers and distributors are expected to report second quarter earnings per share of $0.27, down over 50% year over year. The Chicago, Illinois-based family entertainment company’s revenue would plummet by over 10% to $16.1 billion.

“Disney is building content assets that will enable it to capitalize on the significant direct-to-consumer streaming opportunities that lie ahead. Disney’s underlying intellectual property remains best-in-class and supports long-term content monetization opportunities,” noted Benjamin Swinburne, equities analyst at Morgan Stanley.

“During this period of FCF pressure from park closures, ESPN’s FCF generation is key to de-leveraging. Historical cycles point to a possible return to revenue above previous US parks peak in FY23.”

CHECK OUR WIN CALENDAR FOR THE FULL RELEASES FOR MAY 13TH

Friday (May 14)

This article was originally published on FX Empire

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