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Earnings Roundup: Tesla Motors Inc (TSLA), Fitbit Inc (FIT), Alibaba Group Holding Ltd (BABA)

By Oz Talmor 

Stock giants Tesla Motors Inc (NASDAQ:TSLA), Fitbit Inc (NYSE:FIT), and Alibaba Group Holding Ltd (NYSE:BABA) all released earnings this week, spurring analyst predictions for each. Lets take a closer look:

Tesla Motors Inc

Analysts consensus on Q4 earnings (released May 4th after market close) for the automotive and energy solutions company was a loss of ($0.89) per share and $1.6 billion in revenues. These expectations fell below the actual earnings with a loss of ($0.57) per share while revenue fell in line with expectations. As low as the estimates were, analysts project earnings to grow at an average rate of 30% every year. In addition, the unveiling of Model 3 in late March raised over $400m in reorders, though some analysts are not impressed by Tesla’s strategy and remain bearish on the stock. However, not all have such a negative outlook, like analyst Ben Kallo of Baird, who reiterated an Outperform rating with a rise in price target of $338 from $330. The analyst projected, “We continue to model zero Model III deliveries in 2017, and increased our 2018 Model III estimate to ~160k (up from 40k), and total deliveries to 300k versus TSLA’s 500k vehicle target.”

According to TipRanks, in the past three months, nine analysts gave TSLA a Buy rating, seven gave the stock a Sell rating and four remained on the sidelines. All 12-month price targets average at $246.39, marking a 9.70% upside from current levels.

Fitbit Inc

Sports wearables company Fitbit released its Q1 earnings on May 4th after market close. Analysts expected earnings of $0.02 per share from a revenue of $440m. These expectations were based on the assumption that Apple’s not so impressive earnings, published a week earlier, were lost to Fitbit. In addition, analysts speculated enterprise, which makes up almost 10% of the company’s revenue, to help maintain the long term branding for the company. Expectations were too low, as the company delivered an unexpected $0.10 earnings per share through $505.4m in revenues. However, the company immediately posted a lower guidance for the next quarter due to investments in R&D.

According to TipRanks, in the past three months, ten analysts gave the stock a Buy rating and eight remained on the sidelines. All 12-month price targets average at $23.23, marking a 61.43% upside from current levels.

Alibaba Group Holding Ltd

Unlike the above companies, Alibaba fell behind analysts’ consensus for Alibaba. Expectations were earnings of 3.60 Yuan per share with 23.22b Yuan in revenues, real earnings were 3.02 Yuan per share with 24.23b Yuan in revenues. Needham & Co. analyst, Kerry Rice, gave a BABA a Buy rating with a $95 price target in April on the basis of believing the company is the best in its field and will continue to dominate with its unique value. The analyst stated, “We view Alibaba as the best in class e-commerce marketplace that not only serves as a tollgate to merchants and brands that desire to reach the 1.4B Chinese consumers, but also extends their reach around the world.”

According to TipRanks statistics, in the past three months, all seven analysts gave the company a Buy rating. The average 12-month price target for BABA is $99.14, marking a 25.91% upside from current levels.