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Earnings season: POST forecast, Monday and Tuesday

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Staff Writer | October 24, 2016
Earnings season POST
Earnings reports   Technology, cars, industry, finance

A flood of earnings are set to hit markets this week, with Thursday as the busiest day of the earnings season.

Monday

T-Mobile US, with its postpaid strategy, continues to deliver good results from quarter to quarter. The company added more postpaid users than other carriers and it has good coverage, in fact, it offers the best 3G and 4G speeds. Mix that with a number of special deals that sounds great and there we have it: EPS of $0.22 and revenue of $9.5 billion.

Visa changed its leadership recently - and that, of course, will not impact quarterly results because the quarter is already behind it - but the company increased its quarterly dividend by healthy 18% which means it is in a good financial position.

Visa still holds the firms place in payment networks and the addition of Visa Europe brought even more payments going through its network. Thus, we believe the company will report earnings of $0.75 on revenue of $4.3 billion.

Tuesday

Apple got a gift from above with exploding Samsung Galaxy Note 7, but there are other players on the market, namely Google with its Pixel, that may attract ex-Samsung owners. That, together with good sales reports for the newest iPhone, leads us to forecast EPS of $1.70 and revenue of $48 billion.

With a number of large investors buying into General Motors and ratings from "hold" to "strong buy," mixed with revenue growth and good cash flow, leads us to POST forecast: EPS $1.46, revenues $39 billion for the quarter.

Analysts has seen some big investors buying additional positions in AK Steel. Global met coal prices increased over 100% but the U.S. steel producers are long-term clients and they are buying at the discount prices, and second, when prices of steel input costs goes up, history shows us that steel prices and earnings went up.

So, we expect AK Steel Holding to post EPS of $0.15 per share and revenue of $1.52 billion.

Fiat Chrysler saw good sales in U.S. and Europe in Q3, but there were also product recalls and that will impact earnings. The company is under pressure from Europe and the U.S. to invest into green technologies but we don't see those pressure to have an impact on Q3 earnings right now.

Nevertheless, investors should be careful with Q3 this year: POST forecast is EPS $0.37 and revenue $30.5 billion.


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