2 Tech Earnings Calls To Watch Tuesday: Zillow And Activision Blizzard
While expectations for Zillow are quite low, investors should notice from the chart below that the company has tended to widely beat consensus estimates over the past couple of years.
It should also be noted that online real estate company’s earnings are quite cyclical and tend peak in the fourth quarter each year.
For the third quarter of 2015, the Street is modeling a consensus net loss of ($0.06) per share on revenue of $176.25 million, while the crowd is projecting a net loss of ($0.02) per share on revenue of $177.25 million. These estimates imply a marked decline from last year’s EPS of $0.13 on revenue of $88.6 million.
Activision’s earnings are also cyclical and peak in the fourth quarter each year. However, unlike Zillow’s case, its results have tended to only slightly beat estimates.
In the third quarter of 2014, the big-cap video game maker reported earnings of $0.23 per share on revenue of $1.17 billion, up 188 percent and 78 percent year-over-year, respectively.
For the current quarter, however, expectations point toward lower earnings and sales. Management guided for earnings of $0.14 per share on revenue of $930 million; meanwhile, the Street is anticipating EPS of $0.16 on revenue of $946.67 million.
The least bearish is the crowd, which envisions consensus earnings of $0.18 per share on sales of $964.19 million.
Disclosure: Javier Hasse holds no positions in any of the securities mentioned above.
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