How Analysts Interpreted 5 Big Earnings Reports

Stockal, a firm that analyzes social and analyst sentiment, recently reviewed analyst behavior surrounding five different companies’ earnings. Using their Confidence Meter, which measures the aggregated opinion of over 200 Wall Street analysts, we can see how confidence Wall Street analysts are in certain stocks, and how they interpreted earnings.

Alibaba Group Holding Ltd BABA

Heading into Alibaba’s August 11 report four analysts issued new ratings, and the Street had a combined 74% confidence level in the stock. After Alibaba reported its second quarter beat of $0.74 EPS on revenue of $4.8 billion, 12 new analysts issued ratings on the stock, however analyst sentiment is largely unchanged.

Overall, Wall Street analysts are 73% confident in the stock, according to Stockal.

Amazon.com, Inc. AMZN

Prior Amazon’s July 28 report, analysts were 82% confident in the stock. Amazon’s second quarter earnings beat on both the top and bottom lines ($1.78 EPS and revenue of $30.4 billion), but overall analyst sentiment has dipped slightly according to Stockal.

Ten new ratings have been issued since the report, nine of which are positive,with only SunTrust issuing a neutral rating. Overall, analysts have 79% confidence in the stock according to Stockal’s confidence meter.

Intnational Business Machines Corp. IBM

Barclays maintained their Underweight rating on IBM heading into Big Blue’s July 18 earnings. Even though IBM beat on both EPS and revenue, Wall Street analysts were mixed. Heading into the report overall confidence in the stock was 58% according to Stockal, and that sentiment now sits at 52%. Of the 13 analysts to issue new ratings since the report, 11 projected neutral ratings, three rated the company negatively, and just two gave a positive rating.

Apple Inc AAPL

After getting a couple of positive ratings just before its report, analysts had an 87% confidence rating on Apple heading into July 26.

After shares rallied thanks to Apple exceeding expectations on both EPS and revenue, the stock received 14 new ratings. Of those, only Daiwa didn’t maintain or raise its price target. Overall, analysts 81% confident in the stockl.

Twenty-First Century Fox Inc FOXA

21st Century Fox’s overall analyst confidence was at 64% heading into its second quarter earnings report. Shares fell slightly after it missed its EPS estimate, leading to several analysts cutting their price target.

As a whole, analysts have a 71% confidence level in the stock according to Stockal’s confidence meter, with only Barclays coming out with a downgrade.