#$wtw

Salesforce (CRM): Last quarter Salesforce maintained its lengthy climb on sustained demand for new and pre existing cloud based products. Revenue jumped 25 percent on a 24% increase in subscription and support revenue as well as a nearly 40% rise in professional services and other sales. Along with robust report, management raised guidance for fiscal 2017. Revenue is projected to increase 25 percent to 26 percent in 2017 to the range of $8.37 to $8.38 billion.  

Salesforce failed to make a splashy acquisition in 2016 while Microsoft secured the coveted services of Linkedin. Investors believe that Salesforce will start to lose ground to Microsoft as it integrates the professional network into its namesake CRM products. But often times analysts fail to acknowledge that Salesforce’s other acquisitions have been largely successful in recent years.  Considering adoption rates and demand aren’t having a detrimental impact on financial performance, Salesforce growth strategy seems to be working effectively

On the other hand, increased competition and weak currency translation remain near term headwinds that potentially negatively impact earnings growth. Oracle and now Microsoft could potentially hamper long term prospects if its native products gain traction. Currency fluctuations, as its does with other multinationals, takes toll on international operations and sales growth.

What are you expecting for CRM? Get your estimate in here!

Ambarella (AMBA): Ambarella continues to share in the failures of its biggest client GoPro, which capped off fiscal 2016 on back to back disastrous reports. Shares of the action camera maker tumbled nearly 35 percent in the past 6 months owing to weak results, while its chipmaker, Ambarella fell 15 percent. Nonetheless, analysts at Estimize expect a 25 percent increase on the bottom line and nearly 30 percent on the top. A partnership with Google to support its “Helpouts” service promises to have an additive impact on revenue growth. Meanwhile, new efforts to penetrate high growth markets such as automotive and IP security will help diversify Ambarella’s offerings and lessen its reliance on GoPro. Historically the stock is prone to large swings in the month prior to and after an earnings report, whereas through the print it usually trades sideways.

What are you expecting for AMBA? Get your estimate in here!

Palo Alto Networks (PANW): Palo Alto Networks is one of many cyber security companies to have emerged in recent years. Like many of its peers, the company has suffered during earnings season from decelerating earnings and revenue growth. Investors received a gift last year after it was revealed that the DNC was hacked during the election. This raised concerns over the state of cyber security and the need to bolster protection. Meanwhile, frequent product refreshes coupled with an expanding user base also promises to positively impact top line growth. Additional strength across all its markets and business segments will help as well. Nonetheless, decelerating revenue growth from weak IT spending and increased competition will dampen growth.

What are you expecting for PANW? Get your estimate in here!

LogMeIn (LOGM): Shares of LOGM soared over 85 percent from a year earlier on the back of strong financial performance.Revenue growth exceeded 20 percent in each of the past 5 quarters whereas earnings posted double digit comparisons in 4 of the past 5 reports. Analyst at Estimize expect a slight deceleration compared to previous periods, calling for a 19 percent increase on the bottom line and 15 percent on the top. Historically the stock takes on higher ground during earnings season, gapping up by as much as 6 percent immediately through the print.

What are you expecting for LOGM? Get your estimate in here!

Weight Watchers (WTW): Oprah didn’t just do herself a favor by losing 40lbs, she also helped out shareholders who received significant returns from the announcement. In the past 6 month shares popped 6 months, largely on the back of Oprah’s beaming endorsement and subsequent success using the program. Analysts at Estimize strongly believe that the recent publicity and general economic improvements can boost financial performance moving forward. With that in mind, the stock typically takes a step back during earnings season, gapping lower by an average of 3 percent up to 30 days following a report.

What are you expecting for WTW? Get your estimate in here!

Earnings season can be difficult to navigate for many investors. Even the slightest miss or cut in guidance can be enough to send a stock into a tailspin. A handful of companies experienced this fate in the third quarter, but none worse than Fitbit and GoPro. The two companies committed the worst offense of all, missing analyst’s target on the top and bottom-line and significantly lowering guidance for the key holliday months, a triple whammy. Shareholders responded to each report with a swift 20 to 30% selloff of the stock. While Fitbit and GoPro will continue to struggle, a handful of other names stand out as potential short candidates for the fourth quarter. They include Twitter, Match Group, Qorvo, Weight Watchers, and IBM, all of which have a history of declining prices during the earnings period.

Twitter (TWTR) Information Technology – Internet Software & Services

It’s not surprising that Twitter tops this list of perennial losers, after posting consecutive quarters of slowing user and revenue growth. Despite its past misfortunes it looks as though the worst has yet to come. In the past two months, 5 key executives parted ways with Twitter, signaling a lack of confidence in CEO Jack Dorsey’s vision for the future. With management in a state of flux and a handful of unsolved problems, investors are concerned about what 2017 may bring. Many investors are still holding out hope that Jack will step down or will decide it's time to make a sale. In the meantime, new partnerships with Bloomberg and Cheddar, along with President Elect’s Trump volatile use of the platform will drive engagement in the early part of the year. Twitter also indicated that it will implement features to minimize and filter abusive tweets. That said, the company’s recent track record speaks for itself. It’s reasonable to expect the stock to drop by its historical average of 5% following its fourth quarter report.

Match Group (MTCH) Information Technology – Internet Software & Services

Match Group blazed the trail for online dating with its catalogue of apps which includes Match, OKCupid and Tinder. But its rise to prominence also led to a number of new competitors emerging on the scene. Match Group now faces pressure from all corners with Coffee Meets Bagel and eHarmony actively stealing market share. Its attempts to monetize online dating continue to improve with the number of total paid members increasing each quarter, but growth has failed to meet shareholder’s expectations. As a result, the stock consistently falls by 6% immediately following an earnings report. With a string of new services popping up it should only get more difficult for the old players to make a splash.

Qorvo (QRVO) Information Technology – Internet Software & Services

Qorvo’s over-reliance on Apple iPhone’s puts investors in a precarious position heading into earnings season. The new iPhone 7 came out of the gates hot, but new reports claim that sales were not as good as previously expected. As demand for the phone continues to fall, don’t expect to see QRVO sales to surge in the fourth quarter. Fortunately, like other Apple chipmakers, the company positioned itself into many other high growth markets such as 5G technology and Internet of Things. Revisions activity for the fourth quarter continue to edge down making the stock’s historical 5% decline during earnings season a realistic possibility.

Weight Watchers (WTW) Information Technology – Internet Software & Services

Shares of Weight Watchers soared last week after Oprah revealed she lost 42 pounds on the program but in 2016 investors suffered a 50% loss as membership growth declined. A large portion of the weakness came from international markets which struggled with currency headwinds. With the U.S. dollar reaching new peaks, investors shouldn’t expect its troubles to be alleviated moving forward. Fortunately, News Years resolutions will be in full force to start the 2017, so Weight Watchers should see an uptake in signups this month. The possibility that this translates to robust fourth quarters results looks unlikely based on current estimate activity from Estimize. Analyst’s are currently calling for 19 cents per share on the bottom line on $280.73 million in revenue. Typically the stock falls by 4% through the print and 2% in the next 30 days following the report.

International Business Machines (IBM) Information Technology – Internet Software & Services

IBM maintains its streak of 10 consecutive quarters of negative growth on the top and bottom line. This comes amidst a steady downturn in the PC market, currency headwinds and weak IT spending. Meanwhile, IBM continues to focus on the cloud to offset any losses from its legacy business. But this transition puts pressure on overall growth as cloud sectors slowly gain steam. Stagnant revisions activity over the last 3 months suggest more trouble looms heading into the fourth quarter. Additional competition in high growth markets from Amazon, Microsoft and Google also pose a threat to growth prospects moving forward. The increasing number of factors working against IBM continue to bode favorably for investors ahead of earnings season. It won’t be surprising if IBM fails to post positive growth in Q4 and shares decline by its historical average of 3% or more.

How do you think these names will report this season? Be included in the Estimize consensus by contributing your estimates here!

Here are some of the stocks the Yahoo Finance team will be tracking for you today:

Weight Watchers (WTW) shares are in focus following news late yesterday that chief executive James Chambers is leaving the company at the end of September after three years at the helm. Media mogul Oprah Winfrey will help the diet company find a new CEO. Weight Watchers shares took off last October after Oprah announced she was taking a 10% stake in the company. But the stock has fallen more than 50% since the start of the year as it struggles to reverse a slide in membership and revenue.

Wells Fargo (WFC) said it would eliminate all product sales goals in the retail banking business, starting next year. This comes after regulators fined the bank $185 million dollars for allegedly allowing its employees to open deposit and credit card accounts without customers’ knowledge. It also has to return $5 million to customers affected by the scam. Wells CEO John Stumpf will face lawmakers next week at a Senate Banking Committee hearing. However, the bank has not admitted or denied any wrongdoing.

Anadarko Petroleum (APC) after the oil and gas company said late Monday it’s buying Freeport- McMoran’s (FCX) deepwater Gulf of Mexico assets from its subsidiary for $2 billion. Anadarko is hoping the deal will more than double its US Gulf production within five years.  Freeport is looking to raise cash to cut its heavy debt load.

Weight Watchers International (WTW) Consumer Discretionary - Diversified Consumer Services| Reports May 4, After Market Closes

Key Takeaways

The Estimize consensus is calling for earnings per share of -$0.15 on revenue of $313.07 million, 3 cents higher than Wall Street on the bottom line and $2 million on top

Weight Watcher’s partnership with Oprah has not been successful in acquiring or retaining users

Last quarter, and the first under the new Oprah collaboration, featured significant declines in earnings, revenue and active subscribers

What are you expecting for WTW? Get your estimate in here!

Weight Watchers International is scheduled to report first quarter earnings Wednesday, after the market closes. Using Oprah Winfrey as the face of the company in hopes of garnering new subscribers has largely fallen flat. Since October, when Oprah was introduced as a company spokesperson and board member, revenues have drop over 20% and shares have fallen 41% since the start of the year. With steadily declining earnings and revenue, expectations don’t look promising for Weight Watchers this quarter The Estimize consensus is calling for earnings per share of -$0.15 on revenue of $313.07million, 3 cents higher than Wall Street on the bottom line and $2 million on top. Since its last report, earnings per share estimates have dropped 23% and now reflect a 33% decline on the bottom line. On average, the stock is a large mover during earnings season. In the 30 days leading up to earnings, shares witness a 12% spike but then drastically plunge into the red once the company reports. Weight Watchers largest problem lately has been recruiting and retaining new users. Late last year Weight Watchers brought on Oprah Winfrey in a bid to use her popularity to lift subscription numbers and reverse a 3 year decline in sales. Even with the help of the multi faceted media mogul, Weight Watcher’s delivered dismal fourth quarter sales. The quarter ending January 2 featured a 5% decline in active subscribers to 2.39 million. While it is still too early to tell, investors will be keen to know whether the “Oprah Effect” has any meaningful impact on earnings this quarter or in the future. If it turns out Oprah has been more harm than good, shares could be in for a world of hurt.

Do you think WTW can beat estimates? There is still time to get your estimate in here!

It’s New Years Trading Resolution time. And many of you will outline grand plans. And that is excellent.

Here is a suggestion to help you SUCCEED with your trading resolutions.

You will find some of our well-intentioned resolutions difficult for you to make into habit. The three goals most will struggle with (me too) will be:

1) Journaling 2) Breathing (hardest for me) 3) Exercise

When I struggle with some of the above my health coach challenges me to schedule them on calendar. So breathing is now right after our firm’s Trader Development Mentoring at 11:30AM. It is not just a goal, it now holds a special and specific spot in my day. I am challenged to input exactly when I will workout on my calendar. I prefer to journal actively thought the day so this does not require scheduling (and my health coach doesn’t coach trading). But for many of you, consider not just setting a goal to journal, but adding it to you calendar.

Here’s to you succeeding with your trading resolutions.

...highlighted by a 7% drop in oil prices, a Greek “no” referendum vote on Sunday rejecting austerity demands from creditors, and Asian markets posting wild swings again overnight (where 4-6% moves have been the norm of late). The S&P 500 index failed at its 150 day moving average for a 3rd day, while energy stocks dropped on the oil weakness, and financials slid on lower rates (bonds jumped). Commodities with an all-out rout, outside of the defensive/safe haven gold, with large declines across the board. All this ahead of earnings season starting later this week!