News

Earning Season – Visa Inc., Ebay Inc., and Starbucks Corp.

VISA – Operates as a payments technology company worldwide

Fundamental

Visa (NYSE: V) is scheduled to announce Q3 results at 9:00 PM GMT today. The consensus EPS estimate is $1.04 (-20.6% year-on-year) and the consensus revenue estimate is $4.85 billion (-11.7% year-on-year).

Visa’s management recently informed that the company’s business started picking up as some international markets are reopening and expect results to reflect higher payments volume and processed transaction. Quarterly Earnings Per Share for the company has increased 13 out the last 14 quarters, thus investors could focus on the payment volume metric to outweigh the disruption caused to global consumer and business markets by the COVID-19.

Technical

  • Price is on the 78.6% Fibonacci retracement from $213.99 to $133.72 range
  • Price is also holding above the 50-day simple moving average, testing the resistance line

EBAY – Operates the marketplace and classifieds platforms that connect buyers and sellers worldwide

Fundamental

eBay (NYSE: EBAY) is scheduled to announce Q2 results at 9:00 PM GMT today. The consensus EPS estimate is $1.06 (+55.9% year-on-year) and the consensus revenue estimate is $2.80 billion (+4.5% year-on-year).

eBay’s clever move to sell StubHub (an online ticket resale) in February as to focus on its core marketplace came at the right time since the social distancing has limited the gathering of people at sports, music and entertainment live events which would have affected the company negatively as sales would have been steeply diminished. On July 21, eBay announced that it agreed to sell its classified-ads business to Adevinta ASA for $9.2 billion in cash and stock. On top of that, eBay’s added roughly 6 million new and reactivated buyers in April and May and it raised its guidance.

Technical

  • Price is above the 38.2% Fibonacci retracement on the $61.19 to $46.74 range
  • Price is holding above the 50-day simple moving average and the support line

STARBUCKS – Together with its subsidiaries, operates as a roaster, marketer, and retailer of specialty coffee worldwide

Fundamental

Starbucks (NYSE: SBUX) is scheduled to announce Q2 results at 9:00 PM GMT today. The consensus EPS estimate is $-0.57 vs $0.78 in second-quarter 2019 and the consensus revenue estimate is $4.14 billion (-39.3% year-on-year).

Starbucks is shifting their strategies from traditional café style to focus more on drive-thrus and on-the-go options to accommodate the social distancing factor, thus renovating, relocating, or closing stores in the U.S and Canada. The company said that about 80% of sales in the U.S are takeaway and expects that portion to grow as the pandemic has changed the habitual routines.

Technical

  • Price is on the 50-day simple moving average and below the resistance line
  • Price is above the 61.8% Fibonacci on the $90.64 to $50.02 range

Disclaimer

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