Earnings week ahead: Citigroup, JPMorgan, UnitedHealth, Delta Airlines and more
The upcoming week heralds the commencement of earnings season, featuring major players from the financial, consumer, and industrial sectors poised to unveil their quarterly financial results.
Below is a rundown of major quarterly updates anticipated in the week of January 8–12:
Monday, January 8
Commercial Metals (NYSE:CMC)
Commercial Metals (CMC) is set to unveil its Q1 earnings before the opening bell on Monday. Following a mixed Q4, the company anticipates strong Q1 performance by historical standards but expects a sequential decline. This is attributed to seasonally lower shipments, steel product margin compression in North America, and ongoing challenging market conditions in Europe.
In a recent structural change, CMC announced a realignment of its reporting structure, now comprising three reportable segments: North America Steel Group, Europe Steel Group, and Emerging Businesses Group.
Seeking Alpha contributor Oren Growth Investment suggests that Commercial Metal Company (CMC) is undervalued, attributing it to the company’s exposure to projects that may be less impacted by changes in interest rates. With a low net leverage and a track record of surpassing revenue expectations, CMC is identified as a stock worth monitoring. However, Oren Growth Investment advises caution, highlighting potential risks from failed acquisitions, adherence to environmental regulations, and competition forces that investors should consider.
- Consensus EPS Estimates: $1.45
- Consensus Revenue Estimates: $1.93B
- Earnings Insight: The company has exceeded revenue and EPS expectations in 7 of the past 8 quarters.
Also reporting: Helen of Troy (HELE), Accolade (ACCD), Jefferies (JEF), and more.
Tuesday, January 9
Tilray Brands (TLRY)
Tilray Brands (TLRY) is set to release its Q2 earnings results after Tuesday’s closing bell. The Canadian cannabis company’s shares have had a good comeback lately, climbing by 40% in the last 6 months. But, looking back over the previous year, it had dropped by 22%.
Analysts hold mixed views on TLRY. Seeking Alpha authors suggest a Sell, while Wall Street analysts recommend a Buy. Seeking Alpha’s quant system rates TLRY as a Hold.
Seeking Alpha author Blake Downer notes, “Tilray Brands is trading slightly under their intrinsic value,” adding an additional perspective to the diverse opinions surrounding the company.
- Consensus EPS Estimates: -$0.05
- Consensus Revenue Estimates: $195.07M
- Earnings Insight: Tilray has exceeded revenue expectations in just 3 quarters and EPS in 5 of the past 8 quarters.
Also reporting: Aehr Test Systems (AEHR), MSC Industrial (MSM), CalAmp (CAMP), TD SYNNEX (SNX), SMART Global (SGH), WD-40 Company (WDFC), Acuity Brands (AYI), Neogen (NEOG), E2open (ETWO), and more.
Wednesday, January 10
KB Home (NYSE:KBH)
KB Home (KBH) is set to announce its Q4 results after Wednesday’s closing bell. Analysts anticipate a Y/Y decline in both EPS and revenue for the homebuilder, which has seen growth of over 80% in the past 12 months.
The stock has a cautious outlook from analysts, receiving a Hold rating from both the Sell-side and Seeking Alpha’s Quant rating system.
Seeking Alpha author GS Analytics highlights that KB Home is grappling with high interest rates. However, signs of improving net orders and a stabilizing backlog suggest potential sales improvement in FY24. While margins are expected to get better next year, the current valuation already reflects this outlook, GS Analytics stated, resulting in a neutral rating.
- Consensus EPS Estimates: $1.68
- Consensus Revenue Estimates: $1.62B
- Earnings Insight: KB Home has exceeded EPS expectations in 6 of the past 8 quarters, exceeding revenue in 50% of those reports.
Also reporting: Saratoga Investment (SAR), AZZ (AZZ), PriceSmart (PSMT), and more.
Thursday, January 11
Infosys (NYSE:INFY)
- Consensus EPS Estimates: $0.18
- Consensus Revenue Estimates: $4.66B
- Earnings Insight: Infosys has missed EPS expectations in 5 of the past 8 quarters and revenue in 2 of those reports.
Also reporting: Concrete Pumping (BBCP), and more.
Friday, January 12
Friday is expected to be a busy day in the financial sector, as several major players are set to announce their quarterly results. Keep an eye out for updates from Citigroup (C), Bank of America (BAC), Wells Fargo (NYSE:WFC), JP Morgan (JPM), The Bank of New York Mellon Corporation (BK), and Blackrock (BLK).
In addition to the slew of bank reports, UnitedHealth Group (UNH) and Delta Airlines (DAL) will also update investors on their quarterly results before the market opens on Friday.
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