Wall Street This Week: Fine Quarter Seen for Vail, Verifone
From the leading consumer tech giant finally rolling out its latest gadget to a cloud-based data storage specialist posting its first quarterly report as a public company, here are some of the things that will help shape the week that lies ahead on Wall Street.
Monday — Watch Your Step
All eyes will be on Apple (AAPL) when the new trading week kicks off. The class act of Cupertino is hosting a media event where it is widely expected to announced a release date and updated specs of the Apple Watch.
There’s a lot riding on the success of the device, since more than two-thirds of Apple’s revenue — and likely an even larger proportion of its profitability — are generated by the iPhone. Apple is due for a new hit as iPod and iPad sales continue to shrink.
Tuesday — Pay Up
Verifone Systems (PAY) reports on Tuesday. The company may not seem familiar, but don’t be surprised if you see the Verifone logo the next time you’re swiping your credit or debit card at a store to complete a transaction. Verifone’s the company behind 27 million devices that authorize payments for those who choose to pay with plastic over paper.
Analysts see revenue climbing 11 percent with profitability surging even higher. They are holding out for a profit of 41 cents a share, 32 percent ahead of the 31 cents a share that Verifone posted a year earlier. That may seem like a big jump on the bottom line, but Verifone’s landed ahead of Wall Street income forecasts consistently over the past year. In other words, the trend suggests that Verifone will earn slightly more than 41 cents a share.
Wednesday — Jacked in the Box
A couple of recent IPOs will be reporting quarterly results this week, and that includes Box (BOX) stepping up on Wednesday afternoon. The online storage provider was set to go public between $11 and $13 earlier this year. It ultimately hit the market at $14 in late January.
Don’t hold out for a profitable showing. Box has been losing money as it tries to drum up its growing user base in this cutthroat niche of providers offering free digital lockers of data storage. It and its peers make money where users pay up for additional capacity. Despite the red ink, Box and most of its rivals are growing quickly, and that’s what is exciting investors here. It will have to do, since analysts don’t see Box turning a profit until 2019 at the earliest.
Thursday — Ski Lift
Vail Resorts (MTN) punches in with its fresh financials on Thursday morning. Running a chain of ski resorts is naturally a seasonal business. Vail holds up well in the summer when its massive resorts prove inviting to golfers, hikers and outdoor enthusiasts, but obviously it’s at its busiest during the potent winter season.
Thursday’s report covers the months of November, December, and January. These are naturally pretty good months to be running ski resorts, even though historically it’s the following quarter covering February, March, and April when revenue peaks. Analysts are banking on a profit of $2.30 a share out of Vail Resorts, well ahead of the $1.60 a share that it posted during the prior year’s holiday season.
Friday — Pumpkin at Midnight
Disney (DIS) has been successful in breathing new life into its animated classics by dusting them off as live-action theatrical releases lately. “Maleficent” and Tim Burton’s take on “Alice in Wonderland” drew well at the box office in recent years. On Friday we’ll see if “Cinderella” can keep the winning streak going when it screens at a multiplex near you.
We don’t recommend a midnight viewing. Who knows what will happen to your carriage on the way out?