Earnings week ahead: Nike, FedEx, BlackBerry, Micron, Carnival and more

With the vacation spirit within the air, Wall Road prepares for a constrained earnings calendar subsequent week, with solely a brief record of high-profile firms set to announce quarterly ends in the subsequent a number of days. Nonetheless, the week will see some highlights coming from consumer-facing giants like Nike (NYSE:NKE), Common Mills (NYSE:GIS), CarMax (NYSE:KMX) and Carnival Corp. (NYSE:CCL).

Moreover, outcomes from Accenture (NYSE:ACN), BlackBerry (NYSE:BB), FedEx (NYSE:FDX) and semiconductor large Micron Know-how (NASDAQ:MU) are scheduled to be introduced all through the forthcoming week. Under is a rundown of main quarterly updates anticipated within the week of December 18–22:

Monday, December 18

HEICO (NYSE:HEI)

The inventory is rated a Purchase by Wall Road analysts, which contrasts to Searching for Alpha’s Quant Ranking system, which has a extra cautious strategy, giving the inventory a Maintain.

Dhiren Bechai, an SA investing group chief, expresses optimism in regards to the inventory, attributing the constructive outlook to HEICO’s strategic acquisition of Wencor Group. Bechai anticipates This fall revenues of $911.8 million, underscoring the potential constructive impression on earnings.

Tuesday, December 19

FedEx (FDX)

Memphis-based bundle supply large FedEx (FDX) is because of publish its Q2 earnings after the closing bell on Tuesday. FedEx, which gained greater than 55% in 2023, will get a Maintain score from SA’s Quant Rankings. In the meantime, Wall Road analysts maintains a Purchase score.

SA writer Albert Anthony expresses bullish sentiments on FDX, citing components akin to earnings and dividend progress, undervaluation and constant outperformance towards the S&P 500.

DeVas Analysis takes a extra cautious stance, stating that FedEx’s market cap, nearing $65 billion, could restrict its progress potential. The Searching for Alpha writer categorized the corporate as a non-high-growth funding.

The market anticipates an annual earnings progress charge of over 15%, with a PEG ratio of 1.07 and a P/E of round 14.2x, DeVas Analysis notes, whereas arguing that this progress charge exceeds historic ranges and lacks strong progress drivers.

• Consensus EPS Estimates: $4.20
• Consensus Income Estimates: $22.42B
• Earnings Perception: FedEx has crushed EPS estimates in 5 of the previous 8 quarters, rising above income expectations in solely 2 of these stories.

Additionally reporting: Accenture (ACN), FactSet (FDS), FuelCell (FCEL), Steelcase (SCS), Worthington (WOR), and extra.

Wednesday, December 20

Micron (MU)

Micron Know-how (MU) is all set to launch its Q1 earnings print after the closing bell on Wednesday. In an replace in late November, the corporate revised its Q1 earnings outlook upward, attributing the advance to enhanced provide and demand dynamics and pricing.

The revised expectations embrace anticipated income of roughly $4.7B, up from the earlier vary of $4.2B to $4.6B, with non-GAAP gross margins approaching breakeven. Micron additionally foresees an adjusted lack of $1 per share, plus or minus 7 cents.

The inventory continues to get a Purchase advice from Wall Road analysts, versus a Maintain score from Searching for Alpha’s Quant Ranking system.

“Micron’s valuations have turn out to be forward of the basics, with overly optimistic progress projections,” writes investing group chief Envision Analysis.

• Consensus EPS Estimates: -$1.02
• Consensus Income Estimates: $4.62B
• Earnings Perception: Micron has crushed EPS expectations in 6 of the previous 8 quarters and has crushed income estimates in half of these stories.

Additionally reporting: Common Mills (GIS), Toro (TTC), Winnebago (WGO), BlackBerry (BB), MillerKnoll (MLKN), and extra.

Thursday, December 21

Nike (NKE)

Nike (NKE) is scheduled to publish its Q2 outcomes on Thursday after the closing bell, traditionally marking one of many firm’s seasonally sturdy quarters.

Following combined Q1 outcomes, Matthew Pal, CFO for the Oregon-based footwear maker, stated: “Our first-quarter outcomes demonstrated the impression of staying on the offense over the previous fiscal yr. With a wholesome market and one other quarter of brand name and enterprise momentum, we’re strengthening our basis for sustainable, worthwhile, long-term progress.”

Regardless of this optimism, the inventory receives a Maintain score from Searching for Alpha’s Quant Ranking system — a extra cautious stance in comparison with the consensus Purchase score from Wall Road analysts.

“Nike is the truth is a inventory with some volatility and does present dips that create compelling shopping for alternatives,” guides SA writer Luco Socci.

• Consensus EPS Estimates: $0.85
• Consensus Income Estimates: $13.41B
• Earnings Perception: The corporate has crushed EPS and income estimates 7 instances previously 8 quarters.

Carnival (CCL)

Carnival (CCL) is because of launch its This fall earnings on Thursday. Positioned to learn from the continued rebound within the cruise business after two years of pandemic-related challenges, analysts anticipate increased gross sales and earnings per share in comparison with the earlier yr.

SA writer Manika Premsingh writes, “Carnival Company’s inventory worth has doubled this yr, surpassing the S&P 500’s efficiency. Revenues have almost returned to pre-pandemic ranges, and the corporate reported its first revenue for the reason that pandemic in Q3 2023. The corporate’s steerage for 2024, as a result of full-year 2023 outcomes, suggests a wholesome restoration.”

Total, Carnival’s inventory efficiency in 2023, pushed by pent-up demand, sturdy bookings, and improved financials, has earned it a Sturdy Purchase advice from Searching for Alpha’s Quant Ranking system and a Purchase score from sell-side analysts.

• Consensus EPS Estimates: -$0.13
• Consensus Income Estimates: $5.27B
• Earnings Perception: The corporate has crushed EPS estimates in 3 of the previous 8 quarters and income expectations in simply 2 of these stories.

Additionally reporting: Apogee (APOG), CarMax (KMX), Cintax (CTAS), Paychex (PAYX), AAR (AIR), Mission Produce (AVO), and extra.