3 Earnings Reports To Watch Tuesday: Yahoo, Intel, UnitedHealth
Yahoo ( YHOO ), Intel ( INTC ) and UnitedHealth ( UNH ) headline another busy day for earnings, though investors may look past headline EPS for all three industry giants. Yahoo Yahoo is expected to report a 53% year-over-year decline in EPS to 7 cents after the market close Tuesday. Revenue likely fell 12% to $1.08 billion, with revenue excluding traffic acquisition costs seen declining even faster. CEO Marissa Mayer has been unable to fuel significant growth since taking the helm in 2012. What investors will want to know is any information on the Yahoo bidding process, with offers due on Monday. Yahoo is entertaining offers for all or part of the Web portal, including its core U.S. operations and its Alibaba ( BABA ) stake. It’s unclear if Yahoo will say anything at all. Various reports said Verizon Communications ( VZ ) and YP Holdings, owned by Cerberus Capital and AT&T ( T ), are among the purported bidders . Yahoo stock rose 1 cent to 36.52 on the stock market today . Shares hit an 8-month high of 37.50 last week. Intel Intel also reports after Tuesday’s closing bell. Analysts expect EPS to rise 15% to 47 cents, with revenue up 8% to $13.83 billion. The key is to what extent data center chips offset weakness for PC chips. Investors will want to know if weak PC sales are continuing in Q2, and whether Intel will cut full-year guidance. Looking ahead, Apple may source 30 million to 40 million iPhone 7 modem chips from Intel, taking share from Qualcomm ( QCOM ), according to Canaccord analyst T. Michael Walkley. Qualcomm, which reports earnings Wednesday evening, will still get most of that business. Apple will release its iPhone 7 later this year. Intel rose 0.6% on Monday, find support just over its 200-day moving average. Qualcomm rose 1%, but remains in a downtrend going back to mid-2014. Apple fell 2.2%, continuing to fall after undercutting its 200-day line. UnitedHealth The No. 1 U.S. health insurer, and the first to report Q1 results, is due out Tuesday morning. Analysts expect an 18% EPS rise to $1.72, with revenue up 23% to $43.96 billion. Investors will looking for industry clues about membership, medical costs. They’ll also want to know more about UnitedHealth’s plans for the ObamaCare exchange. UnitedHealth, which was cautious about entering these marketplaces, has been the most vocal about getting out, perhaps entirely in 2017, due to ongoing losses. UnitedHealth last week announced it was exiting the Arkansas, Georgia and Michigan exchanges. If UnitedHealth drastically scales back its participation, it could reduce competition and boost premiums for enrollees. But if UnitedHealth spurs a stampede of insurers getting out, the impact could be huge. UnitedHealth stock rose to a new high a month ago, moving sideways since then. Shares rose 0.4% to 127.81 on Monday.