With earnings season in full swing, a number of interesting earnings reports are on deck for this week. Three notable companies scheduled to report their latest quarterly earnings over the next few days include electric-car company Tesla (NASDAQ:TSLA), e-commerce and cloud-computing giant Amazon (NASDAQ:AMZN), and social network Twitter (NYSE:TWTR).
Ahead of these three companies' earnings releases, here's a preview of some key items to watch when they report.
Tesla continues to grow sales at a wild rate; it posted record quarterly vehicle deliveries earlier this month for its second quarter. Deliveries were up 134% year over year, driven by a surge in Model 3 production and sales. But questions still linger about the company's ability to move closer to regular profits. This is why investors will be watching Tesla's second-quarter earnings release closely.
Though management said in its first-quarter shareholder letter that it expected to be free cash flow positive in Q2, it didn't forecast to be profitable under generally accepted accounting principles (GAAP) until the second half of the year. Management did say, however, that it expected to see a significant reduction in its net loss during the quarter. It's no surprise, therefore, that analysts are calling for Tesla's non-GAAP (adjusted) loss per share during the period to come in at $0.43 -- an improvement from a loss of $2.90 per share in Q1.
Tesla will report its second-quarter results after market close on Wednesday, July 24.
For Amazon, investors will be watching the company's revenue growth rate. The e-commerce and cloud-computing company's revenue growth has been decelerating recently, with its top line rising 17% year over year in Q1 -- down from 20% growth in the fourth quarter of 2018.
Management guided for second-quarter revenue between $59.5 billion and $63.5 billion, representing 13% to 20% year-over-year growth. Analysts, on average, expect the company's revenue to rise 18% year over year to $62.5 billion in Q2.
To get an even better gauge of the company's top-line strength, investors can look to management's guidance for its third-quarter revenue. This guidance may provide some insight into how well Prime Day impacted the period, as the 48-hour shopping holiday happened during the first month of the quarter.
Amazon reports its latest quarterly results after market close on Thursday, July 25.
Two metrics to watch when Twitter reports earnings are its revenue and its growth in daily active users.
In Q1, Twitter's revenue increased 18% year over year, or 20% in constant currency. The company benefited from particular strength in the U.S., where management said "continued execution across product and sales, coupled with broad-based advertiser demand" helped advertising revenue in the domestic market rise 26% year over year. Did this momentum carry over to Q2?
Twitter also notably saw a reacceleration in its daily active users growth rate in Q1. Daily active users increased 11% year over year during the period -- up from 9% growth rates in the previous two quarters. Investors should look to see whether the company can maintain this elevated growth rate for the important metric.
Twitter reports its second-quarter results before market open on Friday, July 26.