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April 18-22

3 Stocks to Watch Next WeekAdvanced Micro Devices, Netflix, and Mattel

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1) Advanced Micro Devices• Struggling chip company

AMD is set to report its first-quarter results after market close on Thursday.

• With new products not coming until later this year, and with a continually slumping PC market, expect another quarter of declining revenue and major losses.

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1) Advanced Micro DevicesLast Quarter

• Revenue slumped by 23% year over year, with a net loss of $102 million.

• Computing and Graphics segment revenue fell 29%, with an operating loss of $99 million.

• Semi-Custom segment revenue fell 15%, with an operating profit of $59 million.

This Quarter• Analysts expect revenue

to fall 20.5% year over year.

• A non-GAAP EPS loss of $0.13 is expected, down from $0.09 in the prior-year period.

• With PC sales down 11.5% in the first quarter, AMD’s results are likely to be ugly.

Source: IDC, AMD, and Yahoo Finance

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1) Advanced Micro Devices• Shares of AMD are

roughly flat over the past year, but with extreme volatility.

• With Polaris GPUs and Zen CPUs coming later this year, the second half of 2016 could show the first signs of a turnaround.

• AMD has over-promised and under-delivered before, and a repeat with Polaris or Zen would be disastrous.

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2) Netflix• Streaming juggernaut

Netflix is set to report its first-quarter results after market close on Monday.

• Netflix plans to increase prices for longtime customers in May to $9.99 per month, boosting revenue but potentially driving some customers away.

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2) NetflixLast Quarter

• Revenue rose 28.1% year over year, while GAAP net income slumped 48.2% due to larger international losses.

• Total streaming subscriber count reached 74.8 million, driven by 64% growth in international subscribers.

This Quarter• Analysts expect revenue

to grow by 24.9% year over year.

• Netflix expects to end the quarter with 80.9 million subscribers, comprised of 46.5 million in the U.S. and 34.4 million in international markets.

• Net income expected to drop 54% year over year.

Source: Netflix, Seeking Alpha, and Yahoo Finance

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2) Netflix• Shares of Netflix have

surged over the past year, up 66%.

• Subscriber count continues to grow at a blistering pace, and upcoming price hikes for early customers could give revenue a boost.

• Netflix is burning cash as it builds its international business, and its stock is extremely expensive.

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3) Mattel• Toy maker Mattel is set to

report its first quarter results after the market close on Wednesday.

• The company is in the middle of a turnaround effort, and the loss of its Disney Princess license will be a major headwind in 2016.

• Currency is also expected to negatively affect Mattel’s results.

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3) MattelLast Quarter

• Net sales were flat year over year, but rose 7% adjusted for currency.

• Net income rose 44% year over year due to significant cost cuts.

• Barbie, Fisher-Price, and Hot Wheels brands grew gross sales by 1%, 8%, and 18% respectively.

This Quarter• Analysts expect a 6.8%

year-over-year revenue decline, and a non-GAAP loss of $0.08 per share.

• Mattel expects the first half of 2016 to be challenging, but believes that a significant portion of the Disney Princess revenue gap can be filled.

Source: Mattel, Seeking Alpha, and Yahoo Finance

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3) Mattel• Shares of Mattel are up

38% over the past year, mostly due to the company’s solid fourth-quarter earnings report.

• Mattel’s revenue and profits have slumped over the past few years, and significant revenue growth is unlikely in 2016.

• The turnaround is making progress, but it may take years to fully play out.

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