Mixed bag and a Slam Dunk
“The best way to teach your kids about taxes is by eating 30% of their ice cream.”
― Bill Murray
The Portfolio
Our blog portfolio continues to perform well and volatility remains low. Year-To-Date the portfolio is up +17.84%. While the markets had a little sell off today ahead of the Feds decision, the blogs portfolio remained relatively calm.
Earnings Season Continues
Today MasterCard and Sony reported earnings. MasterCard was a terrific call while Sony presented a mixed bag that required some deep looking through blurry glass.
MA 7-30-2019
EXPECTED: Mastercard Incorporated is expected* to report earnings on 07/30/2019 before market open. The report will be for the fiscal Quarter ending Jun 2019.
The consensus EPS forecast for the quarter is $1.83. Earnings range is range is $1.73 to $1.91.
The consensus revenue forecast for the quarter is $4.09B, Revenue range is $4.01B - $4.18B.
REPORTED: MasterCard reported earnings of $1.89 per share, beating consensus estimate of $1.83. Better-than-expected results were primarily backed by higher switched transactions, increase in cross-border volume and gross dollar volume, and gains from acquisitions. An increase in rebates and incentives year over year was a partial dampener. MasterCard’s revenues of $4.1 billion were in line and were up 15% year over year. Overall MasterCard appears to be hitting on all cylinders and I'm happy to continue owning the stock.
SNE 7-30-2019
EXPECTED: Sony Corp Ord is expected* to report earnings on 07/30/2019 before market open. The report will be for the fiscal Quarter ending Jun 2019.
The consensus EPS forecast for the quarter is $0.78. Earnings range is range is $0.78 to $0.78.
The consensus revenue forecast for the quarter is $18.79B, Revenue range is $18.79B - $18.79B.
REPORTED: Sony’s net income was down 32.8% year over year but came in at $1.08 per share beating estimates. Total quarterly sales were down 1.4% year over year to $17,518.1 million. The top line was below the estimate of $18,205 million.
Sony reported a less than stellar quarter with top and bottom line numbers decreasing year-over-year. Sony has climbed nearly 80% over the past five years as the incredible growth of its gaming business overshadowed the weaker performance of Sony's other business segments. This quarters results indicate that the growth engine may be pulled over for a pit stop. Of the eight business segments only the financial services operation is expected to grow its revenue and operating profits this year as higher premiums at Sony Life offset its weaker investments. I'm going to spare everyone the deep dive into every segment of the business. The bottom line is with all of the business segments on shaky ground and the stock trading at just 15 times forward earnings, I have to admit that Sony is facing significant headwinds. The only catalyst on the horizon appears to be the PS5 gaming station that won't arrive until next year, which could mean a loss of market share during the all important Christmas shopping season. In addition Sony has activity investors pushing for changes, that so far management has managed to rebuff.
While there is a lot to be concerned about, investors looked through this quarter and saw the value in Sony. This is a company with long term view and has more irons in the fire than a gaming console. Sony is a conglomerate with robust businesses in game and network services, Sony Music, Sony Pictures, home entertainment and sound, imaging products and solutions, mobile communications, semiconductors, and financial services.
Shares are up $2.40 (4.39%), closing at $57.10. My long term outlook still holds with a $63 price target.
MPWR 7-31-2019
EXPECTED: Monolithic Power Systems is estimated to report earnings on 07/24/2019.
The consensus EPS forecast for the quarter is $0.92. Earnings range is range is $0.91 to $0.93.
The consensus revenue forecast for the quarter is $150.68M, Revenue range is $150.16M - $150.7.
RCL 8-1-2019
EXPECTED: Royal Caribbean Cruises Ltd. is estimated to report earnings on 08/01/2019.
The consensus EPS forecast for the quarter is $2.47. Earnings range is range is $2.34 to $2.53.
The consensus revenue forecast for the quarter is $2.8B, Revenue range is $2.76B - $2.84B.
XYL 8-1-2019
EXPECTED: Xylem Inc. is expected* to report earnings on 08/01/2019 before market open. The report will be for the fiscal Quarter ending Jun 2019.
The consensus EPS forecast for the quarter is $0.79. Earnings range is range is $0.76 to $0.80.
The consensus revenue forecast for the quarter is $1.35B, Revenue range is $1.32B - $1.40B.
MIXT 8-1-2019
EXPECTED: MiX Telematics Limited is estimated to report earnings on 08/01/2019.
The consensus EPS forecast for the quarter is $0.18. Earnings range is range is $0.18 to $0.18.
The consensus revenue forecast for the quarter is $35.46M, Revenue range is $34.36M - $36.25M.
AWR 8-5-2019
EXPECTED: American States Water Company is estimated to report earnings on 08/05/2019.
The consensus EPS forecast for the quarter is $0.51. Earnings range is range is $0.50 to $0.53.
The consensus revenue forecast for the quarter is $115.2M, Revenue range is $110.5M - $122.31M.
FOXF 8-7-2019
EXPECTED: Fox Factory is estimated to report earnings on 08/07/2019.
The consensus EPS forecast for the quarter is $0.66. Earnings range is range is $0.65 to $0.67.
The consensus revenue forecast for the quarter is $187.94M, Revenue range is $185.12M - $190.3M.
CCMP 8-7-2019
EXPECTED: Cabot Microelectronics is expected* to report earnings on 08/07/2019 after market close. The report will be for the fiscal Quarter ending Jun 2019.
The consensus EPS forecast for the quarter is $1.57. Earnings range is range is $1.50 to $1.65.
The consensus revenue forecast for the quarter is $267.13M, Revenue range is $263M - $270M.
NSP 8-7-2019
EXPECTED: Insperity, Inc. is estimated to report earnings on 08/07/2019.
The consensus EPS forecast for the quarter is $0.83. Earnings range is range is $0.83 to $0.84.
The consensus revenue forecast for the quarter is $1.04B, Revenue range is $1.02B - $1.05B.
CVS 8-7-2019
EXPECTED: CVS Health Corporation is expected* to report earnings on 08/07/2019 before market open. The report will be for the fiscal Quarter ending Jun 2019.
The consensus EPS forecast for the quarter is $1.69. Earnings range is range is $1.65 to $1.72.
The consensus revenue forecast for the quarter is $62.71B, Revenue range is $61.66B - $63.28B.
BDSI 8-8-2019
EXPECTED: BioDelivery Sciences is estimated to report earnings on 08/08/2019.
The consensus EPS forecast for the quarter is $-0.06. Earnings range is range is $-0.25 to $-0.01.
The consensus revenue forecast for the quarter is $24.59M, Revenue range is $23.07M - $27.3M.
NBRV 8-8-2019
EXPECTED: Nabriva Therapeutics is estimated to report earnings on 08/08/2019.
The consensus EPS forecast for the quarter is $-0.33. Earnings range is range is $-0.34 to $-0.33.
The consensus revenue forecast for the quarter is $790K, Revenue range is $500K - $1.25M.
BSTC 8-8-2019
EXPECTED: BioSpecifics Technologies Corp is estimated to report earnings on 08/08/2019.
The consensus EPS forecast for the quarter is $0.72. Earnings range is range is $0.72 to $0.72.
The consensus revenue forecast for the quarter is $8.98M, Revenue range is $8.98M - $8.98M.
NVDA 8-15-2019
EXPECTED: NVIDIA Corporation is estimated to report earnings on 08/15/2019.
The consensus EPS forecast for the quarter is $1.14. Earnings range is range is $1.07 to $1.24.
The consensus revenue forecast for the quarter is $2.54B, Revenue range is $2.41B - $2.57B.
VEEV 8-22-2019
EXPECTED: Veeva Systems Inc. is estimated to report earnings on 08/22/2019.
The consensus EPS forecast for the quarter is $0.49. Earnings range is range is $0.48 to $0.51.
The consensus revenue forecast for the quarter is $259.37M, Revenue range is $254.17M - $262.6M.
HEI 8-26-2019
EXPECTED: Heico Corporation is estimated to report earnings on 08/26/2019.
The consensus EPS forecast for the quarter is $0.54. Earnings range is range is $0.50 to $0.56.
The consensus revenue forecast for the quarter is $510.16M, Revenue range is $503.4M - $521.53M.
"Markets don't go to zero, Portfolio's do.
Buy quality, be patient...and look twice for motorcyclists"
- Clay Baker
Stay Invested,
Clay
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Keep Me Honest
S&P 500 declines to 2,350 or more (1-3-2019)
Healthcare and Biotech sectors outperform (1-3-2019)
S&P reaches 3,000 by year end (1-11-2019)
CSCO reaches $60/share (1-18-2019)
VEEV reaches $145/share (2-14-2019) (achieved $145.23 on 5-10-2019)
CVS reaches $91.50 (2-27-2019)
Bull market takes another leg up (4-7-2019)
The Fed will lower rates 1-2 times (5-13-2019)
Clay's Rules
Rule #1: Don't lose money
Rule #2: See Rule #1
Rule #3: Portfolios go to zero, markets don't, Stay Invested
Rule #4: When a good stock you own drops 10% below your cost basis, add shares
Rule #5: Bull markets aren't sustained without the Transports
Rule #6: When Forward P/E is lower than TTM P/E, expect earnings to increase
Disclosure: I am personally invested long in some or all of these stocks or funds that appear in the Stay Invested portfolio and may purchase or sell shares within the next 72 hours. I am also invested in other stocks and funds that do not appear in the Stay Invested portfolio but may be mentioned or related to this article. It is not my intention to advise or encourage the purchase or sale of any security. I am invested long in these securities mentioned in this post:
CVS, CSCO, VEEV, STZ, AMZN, NVDA, BCRX, GS, BDSI, VEEV, VTI, GLD, HD, AWR, XLNX, MRVL
I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article. This article is not intended to offer investing advice, guarantee 100% accurate predictions, or to be interpreted as providing a personal recommendation.
