What to expect from Tesla, Twitter and Amazon’s Q3 results
Ahead of Q3 earnings, broker consensus show a hold recommendation on Twitter and Tesla, and a strong buy recommendation on Amazon.
When are the Tesla, Twitter and Amazon earnings dates?
Tesla, the Nasdaq-listed and world-leading electric car specialist, is expected to report its third-quarter (Q3) earnings for 2019 on Wednesday 23 October.
Twitter, the Nasdaq-listed social networking service, is expected to report its Q3 earnings for 2019 on Thursday 24 October.
Amazon, the Nasdaq-listed ecommerce giant, is expected to report its Q3 earnings for 2019 on Thursday 24 October.
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Tesla Q3 2019 earnings preview: ‘The Street’ view, broker ratings and client sentiment
A consensus of estimates from Bloomberg surveyed analysts arrived at the following expectations for the Q3 2019 Tesla results:
- Revenue: $6.358 billion (-6.8% year-on-year [YoY])
- Net income on an adjusted basis: -$45.548 million
- Operating profit: $43.129 million
- Earnings before interest, tax depreciation and amortisation (EBITDA): $633.353 million (-43.7% YoY)
- Earnings per share (EPS) on an adjusted basis: -$0.246
- EPS - generally accepted accounting principles (GAAP): -$1.456
Broker ratings
A Thomson Reuters poll of 33 analysts maintain a long-term average rating of hold for Tesla (as of 16 October 2019), with 7 of these analysts recommending a strong buy, 4 recommending a buy, 10 hold, 8 sell and 4 with a strong sell recommendation on the stock.
Client sentiment
IG clients (50% of them) with open positions on Tesla Inc (as of 16 October 2019) expect the share price to rise in the near term.
Tesla technical view
The share price of Tesla has broken out of a triangle consolidation. The breakout has, however, moved the share into overbought territory. Traders of the triangle breakout might hope for a pullback towards the 240 support level for long entry, targeting a move back towards resistance at 268. Should the share price instead move to close below the 220 support level, the bullish indications would be deemed to have failed.
Twitter Q3 2019 earnings preview: ‘The Street’ view, broker ratings and client sentiment
A consensus of estimates from Bloomberg surveyed analysts arrive at the following expectations for the Q3 2019 Twitter results:
- Revenue: $875.444 million (+15.5% YoY)
- Net income on an adjusted basis: $159.391 million (-2% YoY)
- Operating profit: $172.133 million
- EBITDA: $302.219 million (+2.3% YoY)
- EPS on an adjusted basis: $0.199 (-5.5% YoY)
- EPS (GAAP): $0.087 (-91.5%)
Broker ratings
A Thomson Reuters poll of 44 analysts maintain a long-term average rating of hold for Twitter Inc (as of 16 October 2019), with 8 of these analysts recommending a strong buy, 5 recommending a buy, 25 hold, 6 sell and 0 with a strong sell recommendation on the stock.
Client sentiment
IG clients (89% of them) with open positions on Twitter (as of 16 October 2019) expect the share price to rise in the near term, while 11% of IG clients with open positions on the company expect the price to fall.
Twitter technical view
The share price of Twitter currently trades in a short-term range between the 38.90 (support) and 40.80 (resistance) levels. Traders of the stock might look to the upcoming results for a renewed directional catalyst. A break of support at 38.90 would suggest further decline towards the next level of support located at the 36.60 level. A break of resistance at 40.80, would suggest the 42.80 level as the upside resistance target.
Amazon results Q3 2019 earnings preview: what does ‘The Street’ expect?
A consensus of estimates from Bloomberg surveyed analysts arrive at the following expectations for the Q3 2019 Amazon results:
- Revenue: $58.704 billion (+21.4% YoY)
- Net income on an adjusted basis: $3.929 billon (-0.5% YoY)
- Operating profit: $3.206 billion
- EBITDA: $9.698 billion (+8.7% YoY)
- EPS on an adjusted basis: $7.061 (-10.4% YoY)
- EPS (GAAP): $4.589 (-20.2%)
Broker ratings
A Thomson Reuters poll of 48 analysts maintain a long-term average rating of strong buy for Amazon (as of 16 October 2019), with 26 of these analysts recommending a strong buy, 22 recommending a buy on the stock.
Client sentiment
IG clients (92% of them) with open positions on Amazon (as of 16 October 2019) expect the share price to rise in the near term, while 8% of IG clients with open positions on the company expect the price to fall.
Amazon technical view
The share price of Amazon has formed a bullish reversal off the 1708 support level. The bullish reversal now suggests continued gains with 1835 as the next upside resistance target. Traders of the bullish reversal might use a close below 1708 as a stop-loss consideration.
This information has been prepared by IG, a trading name of IG Australia Pty Ltd. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
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