Latest Most Interesting Earnings Reports: GRPN, LEN, HOME

Within this analysis we focus on the 3 most interesting stocks that have released the earnings reports in the past week:

  • Groupon (GRPN)
  • Lennar Corp (LEN)
  • At Home Group Inc (HOME)

The analysis will take into consideration the financial data reported in the earnings report just released (+ data of the last 5 years) and the stock price performance compared to key levels. For each of the companies there is a chart (+ description) containing the following key levels that could be reached (or exceeded) in the coming weeks:

  • Resistance and Support (black half-lines)
  • Simple moving average 20-day (blue line), 50-day (red line) and 200-day (black line)

The explanation of financial data section can be found at the end of the article.

The information in this article is for informational purposes only and does not constitute investment advice.


Summary

Before going deeper into the individual companies, let’s see together some key data relating to the earnings report released. In particular, the following information is shown in the table:

  • EPS surprise:
    • indicates how much the EPS (Earnings-Per-Share) reported were higher / lower than analysts’ expectations
  • Stock price reaction:
    • indicates the reaction of the stock price on the day of publication of the earnings report
  • Key Data Growth:
    • indicates how much the 3 main items (revenue, net income and net margin) have increased / decreased compared to the same quarter of 12 months before
  • Trend Direction?:
    • Indicates a positive (negative) short, medium and long term trend if the stock price is above (or below) the 20, 50 and 200-day moving average.

Groupon (GRPN)

Groupon, Inc. operates a shopping website which offers goods and services at a discount in North America and internationally. It offers deals in health and beauty, retail, services, activities, events, and food and drink. 

FINANCIALS:

During the last quarter, GRPN reported $374 million in revenue, down -35,3% compared to $578 million reported in the same quarter 12 months earlier. In the same period, net income decreased by -402,4% to -$214 million, compared to net loss of -$43 million in the previous period, while net margin was -57,1% worsened by -676,5% compared to the same quarter 12 months earlier.

Focusing on annual data, GRPN revenue in the last 4 quarters totaled $2.015 million, an decrease of -33,1% compared to $3.014 million in revenue reported 3 years ago. During the same period, GRPN reported a 0,6% increase in net income to -$193 million, compared to -$195 million net loss in the previous period, while the net margin worsened by -48,7% .

KEY CHART LEVELS:

The current price of GRPN is $21,59 . The first key level to be overcome on the upside that could lead to a positive trend is the resistance at $35,81 , 65,86% away from the current price. The second key level that if exceeded to the downside could lead at the beginning of a negative trend is the support at $19,83 , -8,88% away from the current price.

Compared to the other 3 key levels to be monitored, GRPN is below the 20-day moving average , which indicates the presence of a negative short-term trend, below the 50-day moving average which indicates the presence of a negative mid-term trend and below the 200-day moving average which indicates the presence of a negative long-term trend.


Lennar Corp (LEN)

Lennar Corporation is the leading builder of quality new homes in the most desirable real estate markets across the nation. The Company builds affordable, move-up and retirement homes primarily under the Lennar brand name.

FINANCIALS:

During the last quarter, LEN reported $5.287 million in revenue, down -5,0% compared to $5.563 million reported in the same quarter 12 months earlier. In the same period, net income increased by 22,8% to $517 million, compared to net income of $422 million in the previous period, while net margin was 9,8% , improved by 29,1% compared to the same quarter 12 months earlier.

Focusing on annual data, LEN revenue in the last 4 quarters totaled $22.621 million, an increase of 106,6% compared to $10.950 million in revenue reported 3 years ago. During the same period, LEN reported a 130,7% increase in net income to $2.104 million, compared to $912 million net income in the previous period, while the net margin improved by 11,7% .

KEY CHART LEVELS:

The current price of LEN is $60,18 . The first key level to be overcome on the upside that could lead to a positive trend is the resistance at $65,99 , 9,65% away from the current price. The second key level that if exceeded to the downside could lead at the beginning of a negative trend is the support at $54,33 , -10,77% away from the current price.

Compared to the other 3 key levels to be monitored, LEN is below the 20-day moving average , which indicates the presence of a negative short-term trend, above the 50-day moving average which indicates the presence of a positive mid-term trend and above the 200-day moving average which indicates the presence of a positive long-term trend.


At Home Group Inc (HOME)

At Home Group Inc. owns and operates home-decorating accessories stores primarily in the United States. It offers furniture, home furnishings, wall decor and decorative accents, rugs and housewares. 

FINANCIALS:

During the last quarter, HOME reported $190 million in revenue, down -38,0% compared to $306 million reported in the same quarter 12 months earlier. In the same period, net income decreased by -2682,0% to -$359 million, compared to net income of $14 million in the previous period, while net margin was -189,1% worsened by -4266,9% compared to the same quarter 12 months earlier.

Focusing on annual data, HOME revenue in the last 4 quarters totaled $1.249 million, an increase of 63,1% compared to $766 million in revenue reported 3 years ago. During the same period, HOME reported a -2266,8% decrease in net income to -$587 million, compared to $27 million net income in the previous period, while the net margin worsened by -1428,7% .

KEY CHART LEVELS:

The current price of HOME is $6,90 . The first key level to be overcome on the upside that could lead to a positive trend is the resistance at $8,03 , 16,38% away from the current price. The second key level that if exceeded to the downside could lead at the beginning of a negative trend is the support at $5,49 , -25,68% away from the current price.

Compared to the other 3 key levels to be monitored, HOME is above the 20-day moving average , which indicates the presence of a positive short-term trend, above the 50-day moving average which indicates the presence of a positive mid-term trend and above the 200-day moving average which indicates the presence of a positive long-term trend.


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FINANCIAL DATA

– Explanation –

This section shows some key financial data contained in the company’s income statement, updated to the latest available earnings report. The 2 tables are as follows:

FIRST TABLE – “Key Data in the past 5 years”

“Key Data in the past 5 years” table shows the amount of Revenue, Net Income and Net Margin (the percentage of Revenue that turns into Net Income) reported in the last year or in the last 4 quarters (TTM-trailing 12-months). In the same table you can find the percentage increase (or decrease) of the 3 items in the last 3 years.

To the right of the table you find a chart containing the trend of Revenue in the last 5 years (green columns) and the trend of Net Income (red line) in the same period. Inside the same chart you will find a semi-transparent line that show the trend line of the Revenue in the last years.

This section is useful for understanding if the company has been growing in recent years.

SECOND TABLE – “Key Data in the last Earnings Report”

“Key Data in the last Earnings Report” table shows the data of the same items of the previous table, but with reference to the last earnings report released by the company in comparison with the same quarter of 12 months before.

On the right of the table you will find the relative chart containing the trend of Revenue (green columns) and Net Income (red columns) in the 2 quarters taken into consideration (current versus last year’s quarter).

This section is useful for understanding if the company has grown in the last quarter compared to the same quarter of last year.

Data are expressed in millions of dollars.


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Sources & additional info

*Chart by stockcharts.com
*EPS surprise and company description by barchart.com


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