Full earnings preview: Brace for more quarterly losses at Uber
Newly public RealReal Inc. /zigman2/quotes/212846592/composite REAL -7.29% will also report Monday afternoon, while Cloudflare Inc. /zigman2/quotes/214109260/composite NET -0.77% reports earnings for the first time since its September IPO.
How healthy is the health sector?
One of the busiest sectors of the week will be health care and pharmaceuticals, highlighted by CVS Health Corp. /zigman2/quotes/209664499/composite CVS -5.30% , which continues to find its footing after the transformational acquisition of insurer Aetna Inc. After spooking investors with a downbeat forecast early in the year, CVS has managed to perform better than its projections, and the stock is up more than 21% in the past three months after strong quarterly results released in August. The company rolled out its CarePass membership program during the calendar third quarter, so early results from that Amazon Prime-like offering will be watched closely.
Other health and drug companies reporting in the coming week include Humana Inc. /zigman2/quotes/203095337/composite HUM -4.36% , Mylan NV /zigman2/quotes/209413137/composite MYL -4.40% , Allergan PLC /zigman2/quotes/206377386/composite AGN -1.90% , Tenet Healthcare Corp. /zigman2/quotes/207964487/composite THC -3.81% and Bausch Health Cos. Inc. /zigman2/quotes/207248436/composite BHC -7.86%
Thursday promises dueling videogame earnings, with Take-Two Interactive Software Inc. /zigman2/quotes/204008930/composite TTWO -1.49% and Activision Blizzard Inc. /zigman2/quotes/200717283/composite ATVI -1.75% scheduled to report. Activision recently disclosed that its “Call of Duty: Modern Warfare” title had more than $600 million in sell-through during its first three days of availability, marking the best performance for a “Call of Duty” game in the current console generation. Cowen & Co. analysts caution that “launch window upside” doesn’t necessarily indicate that a title will keep up the strong momentum going forward, so Activision’s sales outlook on its Thursday afternoon call will be a focal point. Take-Two will start selling its biggest game of the year, “Red Dead Redemption 2,” for personal computers next week, a couple of days before its earnings report, so expect to hear more about what that move could bring.
- Paying up: Square Inc.’s /zigman2/quotes/205989440/composite SQ +3.55% investment strategy will be an area of focus when the payments company reports on Wednesday afternoon, now that the company’s acquisition of Caviar has closed. Investors will also be looking for more commentary on the company’s recent move to add stock trading on its Cash app. Other payments names on the docket include Fiserv Inc. /zigman2/quotes/204817680/composite FISV -3.84% and Fidelity National Information Services Inc. /zigman2/quotes/207166559/composite FIS -3.50% , two of the three fintech companies that conducted megamergers this year. Their reports come after the third of the “deal stocks,” Global Payments Inc. /zigman2/quotes/201234787/composite GPN -3.11% , raised its synergy targets around its own acquisition.
- Who’s on top at Under Armor? : Under Armour Inc.’s /zigman2/quotes/208967132/composite UA -3.76% Monday morning report will be the first since the company announced that Chief Executive Kevin Plank will step down at the end of the year. Pivotal Research Group is looking for “some discussion of succession” during Under Armour’s earnings call, which comes amid doubts about the company’s brand strength. Revenue is expected to drop for the third quarter, though Pivotal says the company admittedly faces a “low sales bar.”
- On the web: Travel websites will detail their hopes for the holiday season, as Booking Holdings Inc. /zigman2/quotes/203576210/composite BKNG -1.09% , Expedia Group Inc. /zigman2/quotes/202291990/composite EXPE -2.45% , TripAdvisor Inc. /zigman2/quotes/206118480/composite TRIP -3.77% and Trivago NV /zigman2/quotes/205613957/composite TRVG -2.08% all report. Zillow Inc. /zigman2/quotes/204413973/composite Z -4.31% and Redfin Inc. /zigman2/quotes/203726414/composite RDFN -5.37% will detail how real-estate is working online, while Stamps.com Inc. /zigman2/quotes/202777086/composite STMP -2.95% will continue to try to battle back from its loss of an exclusive deal with the U.S. Postal Service. Match Group Inc. /zigman2/quotes/207178501/composite MTCH -1.88% will report for the first time since Facebook Inc. launched its online-dating service, along with the rest of the IAC/Interactive Corp. /zigman2/quotes/205118493/composite IAC -3.34% menagerie. Yelp Inc. /zigman2/quotes/201334325/composite YELP -4.68% , Dropbox Inc. /zigman2/quotes/205896836/composite DBX -2.77% , Baidu Inc. /zigman2/quotes/209050136/composite BIDU -2.94% and Groupon Inc. /zigman2/quotes/207356672/composite GRPN -5.71% are also expected to report.
- More chips : After reports from Advanced Micro Devices Inc. /zigman2/quotes/208144392/composite AMD -7.33% and chip-equipment suppliers buoyed hopes for a semiconductor turnaround, Qualcomm Corp. /zigman2/quotes/206679220/composite QCOM -4.67% and Microchip Technology Inc. /zigman2/quotes/208326291/composite MCHP -5.16% will report earnings.