pick list earnings and more ?3

12:01 24-Mar-17

Although now is not what's generally thought of as earnings season, next week features a few earnings reports that are of importance to me.  I've already previewed the Westport call on Monday afternoon, but here are the others...

eMagin has just announced that it will report 4Q16 earnings the next morning.  On average, analysts expect a loss of 7 cents per share on revenue of $5.3M, with the current quarter expected to rise to $7.2M in sales.  Color on partnerships for commercializing new VR products is likely to be more important than the numbers.

As reminder, CVA also goes ex-dividend that day.  At current prices the yield is just over 6.5%.  My fair value estimate remains at $16.67, which implies 6% yield, and on the view that management should be able to resume dividend increases next year.

Resonant has scheduled its 4Q16 report for the evening of Thursday, March 30th.  Analysts expect the company to lose 31 cents per share, on average.  RESN might be less followed and understood than any other stock that I follow, yet I think it has the most potential long-term upside.  Determining the curve of licensing revenue, if any, is the key here, but I doubt that will become clear during this call.

Looking further out, Patterson-UTI has scheduled its 1Q17 report to take place on the morning of April 27th, one week after the Seventy Seven vote.  Analyst projections average out to a loss of 44 cents on $293M in sales, with current quarter revenue rising to $411M, reflecting the fact that the company's drilling activity continues to grow, albeit more conservatively.  I'll be at least as interested in Sclumberger's call, later in the month, with respect to assessing the prospects for PTEN.

Finally, CenturyLink also announced yesterday that will give its 1Q17 report after the bell on Wednesday, March 3rd.  Average expectations are for EPS of 53 cents on revenue of $4.3b with the current quarter expected to decline to $4.2b.  Again, I see the Level 3 purchase as crucial to optimizing the business and setting the company up to participate in new wave of industry consolidation.  The dividend is near 9.5%.