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Yulya Lobanova • 2019-04-30

Trade on the Earnings Reports of Apple, Mastercard, and Other Market Giants!

Trade on the Earnings Reports of Apple, Mastercard, and Other Market Giants!


Dear Traders,

Lots of US companies keep releasing their financial results for Q1. It is quite likely that their stocks will make big moves even after the earnings announcements have been made. This week's reports provide trading opportunities you should know about. You can trade these stocks via MTrading.


EPS (Earnings Per Share) forecast: $2.36

Revenue forecast: $57.59B

According to the Wall Street estimation, the company's revenue will decline by 5-6% year-over-year. Apple already offered trade-in deals and discounts to many countries, China and Japan in particular, to encourage sales. Despite the fact that there is no further information on iPhone sales disclosed, analysts will make their estimates based on other data. Currently, the opinion presumes an 18% decline. The cheap competition with Xiaomi and Huawei in China leaves less room for the necessary sales gain, even with the help of discounts.

Generally, the market will focus on the iPhone revenue, total revenue and Apple's guidance for the future quarters.

The stock is vulnerable for a decline since it has made a significant advance over the recent months. Support is now at 198.35 and 193, and resistance lies at 210 and 214.

General Electric

EPS forecast: $0.09

Revenue forecast: $26.98B

The General Electric stock lost more than 65% since April 2017 and was in a bearish trend but managed to recover in 2019. At the same time, the S&P 500 added more than 27%.

Also, it is important to notice that the stock reacted negatively on the previous earnings reports. Forecasts are rather pessimistic: EPS are expected to lower by 43% compared to the first quarter of 2018, and the revenue might fall by 5.6% y/y.

The Power and Lighting segments appear to be the company weak spots. Support levels are at 9 and 6.50. Resistance is at 10.30 (200-day MA) and 10.90 (50-week MA).


EPS forecast: $1.66

Revenue forecast: $3.85B

Mastercard anticipates positive forecasts. Q1 EPS is expected to rise by 11.3% and the revenue by 8.3%. The company is also likely to have strong growth in volume, transaction and service offerings.

The ongoing implementation of the electronic forms of payment discovers opportunities for further development.

Mastercard has been investing in security products, data analytics, geographic presence and digital platforms to boost the flow of payments. Even though it may cause higher expenses, the market standing of the company remains quite strong.

The stock of Mastercard now has reached an all-time high of 246. Expected growth levels are 250 and 255. Support is at 240.85 and 233.


EPS forecast: $1.76

Revenue forecast: $4.94B

McDonald's sales increased during the last three quarters. The fast-food chain has been performing better outside the US since competition there is lower.

In Q4 of 2018 sales growth was about 2% in the US, whereas international segments performed near 5-6%.

The Q1 results will show investors the figures to compare. Higher US results might positively affect the stock growth, whereas the lower results may provoke the fall.

The EPS and revenue forecast expects them down by 2.8% and 3.8% y/y respectively. The price for the stock is close to the all-time high of 198.47. Further resistance is at the level of 200.00. Support is placed at 195 and 191.


EPS forecast: $0.75

Revenue forecast: $13B

Analysts opinion about the future performance of this stock is quite indefinite. But worth noticing that the pharma still has been performing better than expected - the company's earnings surpassed expectations for the previous four quarters.

The company has a sustainable business but still suffered from the recent leg down in stock's price, caused by policy proposals in Congress related to the healthcare industry.

An advance above 40.35 will open the way up to stronger resistance at 41.50. The 100-week MA at 38.30 will act as the main support.

Kind Regards,

MTrading Team