This week, 110 S&P 500 companies are scheduled to report Q3 earnings results. Heading into those reports a number of names have seen large revisions on both the top and bottom-line. These are the companies with the most revision activity over the past month.
eBay (EBAY)
Information Technology – internet Software & Services | Reports October 21 after the close.
The Estimize consensus calls for EPS of $0.48, an 11 cent decrease in the last month, yet still 7 cents above the Wall Street estimate. Revenues estimates have also been revised downward, to $2.413B from $2.913B, and the Street is calling for $2.100B.
What to watch: This will be eBay's first quarterly report since the spinoff of its digital payment arm, PayPal, and it looks like analysts are doubting its strength as a standalone service. It certainly doesn't help that the retail space in general has been challenged recently, a concern that hit a fever pitch this week after Wal-Mart issued lower than expected guidance for the rest of the year, and into next year, as well as a warning from the National Retail Federation that holiday sales will be weaker this year. We already have July and August numbers from eBay, and they aren't looking good. US multi-platform unique visitor growth increased 11% YoY in July and August, down from 23% in Q2; it seems doubtful September numbers will be able to make up that difference. Another metric that is always key for retailers is same store sales, which only came in at 5% in July and August, down from 7% in Q2. Gross merchandise volume is expected to fall 6% YoY.
Allegiant Travel Company (ALGT)
Industrials – Airlines | Reports October 21, after the close
The Estimize consensus calls for EPS of $2.56, an uptick of 6 cents from September 22, still below Wall Street's estimate for $2.60. Revenues have risen only slightly, to $300.1M from $299.4, just above the Street's consensus for $299.1M.
What to watch: Allegiant is a domestic low cost carrier that has successfully been stealing market share from its larger competitors, something that has lead to double digit EPS growth in the first two quarters this year, and 10% revenue growth in the first half. The company's value proposition is that it links travelers in small cities to world class travel destinations. While it's been putting up great fundamentals, and reported a record number of passengers in the latest quarter, revenue per available seat growth has begun to flatten out.
