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With the holiday spirit in the air, Wall Street prepares for a constrained earnings calendar next week, with only a short list of high-profile companies set to announce quarterly results in the next several days. Still, the week will see some highlights coming from consumer-facing giants like Nike (NYSE:NKE), General Mills (NYSE:GIS), CarMax (NYSE:KMX) and Carnival Corp. (NYSE:CCL).
Additionally, results from Accenture (NYSE:ACN), BlackBerry (NYSE:BB), FedEx (NYSE:FDX) and semiconductor giant Micron Technology (NASDAQ:MU) are scheduled to be announced throughout the forthcoming week. Below is a rundown of major quarterly updates anticipated in the week of December 18–22:
Monday, December 18
HEICO (NYSE:HEI)
The stock is rated a Buy by Wall Street analysts, which contrasts to Seeking Alpha’s Quant Rating system, which has a more cautious approach, giving the stock a Hold.
Dhiren Bechai, an SA investing group leader, expresses optimism about the stock, attributing the positive outlook to HEICO’s strategic acquisition of Wencor Group. Bechai anticipates Q4 revenues of $911.8 million, underscoring the potential positive impact on earnings.
- Consensus EPS Estimates: $0.69
- Consensus Revenue Estimates: $899.05M
- Earnings Insight: The company has beaten revenue estimates in 7 of the past 8 quarters and EPS estimates in 6 of those reports.
Tuesday, December 19
FedEx (FDX)
Memphis-based package delivery giant FedEx (FDX) is due to post its Q2 earnings after the closing bell on Tuesday. FedEx, which gained more than 55% in 2023, gets a Hold rating from SA’s Quant Ratings. Meanwhile, Wall Street analysts maintains a Buy rating.
SA author Albert Anthony expresses bullish sentiments on FDX, citing factors such as earnings and dividend growth, undervaluation and consistent outperformance against the S&P 500.
DeVas Research takes a more cautious stance, pointing out that FedEx’s market cap, nearing $65 billion, may limit its growth potential. The Seeking Alpha author categorized the company as a non-high-growth investment.
The market anticipates an annual earnings growth rate of over 15%, with a PEG ratio of 1.07 and a P/E of around 14.2x, DeVas Research notes, while arguing that this growth rate exceeds historical levels and lacks robust growth drivers.
- Consensus EPS Estimates: $4.20
- Consensus Revenue Estimates: $22.42B
- Earnings Insight: FedEx has beaten EPS estimates in 5 of the past 8 quarters, rising above revenue expectations in only 2 of those reports.
Also reporting: Accenture (ACN), FactSet (FDS), FuelCell (FCEL), Steelcase (SCS), Worthington (WOR), and more.
Wednesday, December 20
Micron (MU)
Micron Technology (MU) is all set to release its Q1 earnings print after the closing bell on Wednesday. In an update in late November, the company revised its Q1 earnings outlook upward, attributing the improvement to enhanced supply and demand dynamics and pricing.
The revised expectations include anticipated revenue of approximately $4.7B, up from the previous range of $4.2B to $4.6B, with non-GAAP gross margins approaching breakeven. Micron also foresees an adjusted loss of $1 per share, plus or minus 7 cents.
The stock continues to get a Buy recommendation from Wall Street analysts, as opposed to a Hold rating from Seeking Alpha’s Quant Rating system.
“Micron’s valuations have become ahead of the fundamentals, with overly optimistic growth projections,” writes investing group leader Envision Research.
- Consensus EPS Estimates: -$1.02
- Consensus Revenue Estimates: $4.62B
- Earnings Insight: Micron has beaten EPS expectations in 6 of the past 8 quarters and has beaten revenue estimates in half of those reports.
Also reporting: General Mills (GIS), Toro (TTC), Winnebago (WGO), BlackBerry (BB), MillerKnoll (MLKN), and more.
Thursday, December 21
Nike (NKE)
Nike (NKE) is scheduled to post its Q2 results on Thursday after the closing bell, historically marking one of the company’s seasonally strong quarters.
Following mixed Q1 results, Matthew Friend, CFO for the Oregon-based footwear maker, said: “Our first-quarter results demonstrated the impact of staying on the offense over the past fiscal year. With a healthy marketplace and another quarter of brand and business momentum, we are strengthening our foundation for sustainable, profitable, long-term growth.”
Despite this optimism, the stock receives a Hold rating from Seeking Alpha’s Quant Rating system — a more cautious stance compared to the consensus Buy rating from Wall Street analysts.
“Nike is in fact a stock with some volatility and does provide dips that create compelling buying opportunities,” guides SA author Luco Socci.
- Consensus EPS Estimates: $0.85
- Consensus Revenue Estimates: $13.41B
- Earnings Insight: The company has beaten EPS and revenue estimates 7 times in the past 8 quarters.
Carnival (CCL)
Carnival (CCL) is due to release its Q4 earnings on Thursday. Positioned to benefit from the ongoing rebound in the cruise industry after two years of pandemic-related challenges, analysts expect higher sales and earnings per share compared to the previous year.
SA author Manika Premsingh writes, “Carnival Corporation’s stock price has doubled this year, surpassing the S&P 500’s performance. Revenues have nearly returned to pre-pandemic levels, and the company reported its first profit since the pandemic in Q3 2023. The company’s guidance for 2024, due to full-year 2023 results, suggests a healthy recovery.”
Overall, Carnival’s stock performance in 2023, driven by pent-up demand, strong bookings, and improved financials, has earned it a Strong Buy recommendation from Seeking Alpha’s Quant Rating system and a Buy rating from sell-side analysts.
- Consensus EPS Estimates: -$0.13
- Consensus Revenue Estimates: $5.27B
- Earnings Insight: The company has beaten EPS estimates in 3 of the past 8 quarters and revenue expectations in just 2 of those reports.
Also reporting: Apogee (APOG), CarMax (KMX), Cintax (CTAS), Paychex (PAYX), AAR (AIR), Mission Produce (AVO), and more.
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