Earnings Preview: Trouble Isn't Over for Mylan NV (MYL) Stock

This week is almost all about the presidential election, which will resound throughout the stock market -- especially if Donald Trump is elected. Far more studies than not say the markets will tank if Trump surprises most pundits and becomes our next president.

But the election also threatens to overshadow several earnings reports that have plenty of import of their own. From scandal-plagued Mylan NV (ticker: MYL) to theme-park-in-crisis SeaWorld Entertainment ( SEAS) to a batch of struggling retailers, investors have more than just politics to sink their teeth into this week.

Mylan. Mylan has been trying to wind down its EpiPen scandal for months. The company has enhanced eligibility for its partner assistance program, announced it would create a generic EpiPen and settled a Medicaid underpayment dispute with the U.S. Department of Justice for $465 million.

But the problem is far from over.

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As part of its making the EpiPen treatment more accessible, Mylan has trimmed its full-year forecast from a range of $4.85 to $5.15 per share to a range of $4.70 to $4.90. And West Virginia's attorney general is refusing to say "quit," asking the DoJ to reject the "sweetheart" settlement. The deal hasn't stemmed the bleeding, either. MYL has lost another 3 percent since then, extending its red ink to nearly 35 percent for the year.

And more broadly, a Clinton victory is expected to weigh on pharma and biotech companies, so that pain could be on deck, too.

Third-quarter earnings out after Wednesday's bell aren't going to be grand. If MYL is going to beat estimates -- which stand at a 1 percent earnings increase to $1.45 per share on 15 percent revenue growth to $3.12 billion -- it will come from the generics segment that has been saving Mylan all year. Instead, bulls should cling on to the idea that a generic EpiPen marketed directly to consumers could actually boost profitability down the road.

SeaWorld Entertainment. SeaWorld attendance and SEAS shares have both been clubbed since just about a few months after its 2013 initial public offering. CNN's "Blackfish" movie, which released in 2013, sparked outrage over the mistreatment of the animals featured at the parks and turned would-be visitors off SeaWorld parks. The company's half-year attendance, announced back in August, declined to 9.281 million visitors -- off about 4 percent from last year and down more than 13 percent from 2013 figures.

As a result, SeaWorld has taken measures that could save or kill the brand.

In March, SEAS said it would stop breeding killer whales and phase out its Orca shows across all parks. Over the past few weeks, SeaWorld has put its chips on some new tactics: more educational, "pastoral" exhibits and a virtual-reality roller coaster. However, none of these initiatives are expected to affect the company's third-quarter earnings release, due out Tuesday morning.

Analysts see revenues declining 2.5 percent to $484.55 million, and earnings dipping 5 percent to $1.08 per share. Full-year numbers are expected to decline, too. SeaWorld -- which has $29 million in cash versus $1.6 billion in debt -- can't afford these kinds of results for much longer. That's why, back in September, SEAS suspended its quarterly dividend.

If SeaWorld does beat, expect a relief rally in the face of a 2016 full of awful headlines and a 30 percent decline.

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Macy's (M). Macy's, which is attempting a turnaround of its own, was shredded in May of this year after announcing disappointing sales and a fifth consecutive quarter of declining comps. The problems were myriad, from weak spending by international shoppers at popular tourist locations in the U.S., to fast fashion eating Macy's lunch to bland product lines.

However, the company has rebounded, thanks in large part to a Street-beating second quarter on the shoulders of deep discounts. Macy's also announced that it would close 100 underperforming locations, which will clip about $1 billion from annual sales but benefit margins.

On Thursday morning, Macy's is expected to report a 27 percent earnings slump to 41 cents per share on a 4 percent decline in revenues of $5.65 billion. That's a low bar to clear, and given that Macy's shares still are depressed by about 50 percent since mid-2015, a beat should provide some lift.

Another reason for optimism in Macy's is almost laughably low comparisons for this year's holiday quarter. Citi and Deutsche Bank analysts have both upgraded Macy's recently, and both believe the retailer should have an easy time improving upon last year's fourth quarter.

J.C. Penney Co. (JCP). While JCP's rip-roaring gains of 80 percent to start the year have been mostly hacked away, the company still is will ahead of the market, up 23 percent. And more importantly (though less exciting), it's making the steady progress necessary to mark a business comeback.

JCP has been paring its losses all year, thinning its first-quarter deficit from $150 million in 2015 to $68 million for 2016, and a $117 million loss in the second quarter to just $56 million. The same is on tap this quarter -- analysts expect the adjusted loss to drop from 47 cents per share to just 20 cents -- and on a 2 percent improvement in revenue, no less.

The main drivers here are a return to selling appliances and a partnering with LVMH's beauty holding, Sephora, in which it expanded its boutique-within-a-store format to smaller markets, which has helped attract the millennial crowd.

JCP has given up a lot of its gains over the past few months, and the downward momentum is continuing into JCPenney's report. Meanwhile, a thick 28 percent of JCP's float is sold short. It would take a significant beat, but the conditions are right for a bear-punishing short squeeze.

Michael Kors Holdings (KORS). Michael Kors has had some ups and downs, but it has mostly held on to the huge gains it registered from its big fiscal third-quarter earnings beat announced in February.

Still, the estimates for this year's fiscal second quarter, which KORS will release Thursday evening, aren't promising from a long-term perspective.

Look back to February 2014, when Michael Kors released earnings that would shoot it up to all-time highs near $100. The company reported a 59 percent increase in revenues and 28 percent improvement in comps. Shares currently trade around $50, Michael Kors reported a 7 percent-plus drop in comps last quarter, and second-quarter revenues are expected to decline by nearly 4 percent. Earnings are expected to decline about 13 percent, too.

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Michael Kors is trying to reduce couponing to improve its brand. But a Goldman Sachs analyst's suggestion that there's a "lack of visibility" at this stage should be enough to dissuade investors from speculating in a recovery right now.

Kyle Woodley is managing editor of InvestorPlace.com. Investing is his second love, with Ohio sports teams as his first. Naturally, this has warped his general perception of love, sparking (among other things) an unnatural affection for the Haddaway hit, "What Is Love?" Follow him on Twitter @kylewoodley.