Despite fewer earnings reports next week, several high-profile companies are about to release their financial figures. The results could significantly influence market sentiment in key sectors such as enterprise software and consumer staples.
It is worth noting that investors are eager to receive updates from Oracle (New York Stock Exchange: ORCL), Game Stop (New York Stock Exchange:GME), Adobe (NASDAQ:ADBE), Hooks (New York Stock Exchange:KR), Manchester United (New York Stock Exchange: MANU) and Signet Jewelers (New York Stock Exchange: SIG), among others.
Below is a summary of the major quarterly updates planned for the week of September 9-13:
Monday, September 9th
Oracle (ORCL)
Texas-based software giant Oracle (ORCL) will release its quarterly results after the market closes on Monday. Analysts are anticipating 6% year-over-year growth in revenue and about 12% in profit.
Seeking Alpha's quantitative rating system maintains a cautious stance on Oracle, assigning it a Hold rating. Meanwhile, Wall Street analysts have a consensus recommendation of Buy.
SA author Joseph Parrish, who rates the stock Buy, notes that Oracle is benefiting from the ai boom, with its stock posting a solid performance, but still offers an attractive entry point. He notes that Oracle’s competitive advantage lies in its cloud business, especially its role in training large language models, supported by complementary products.
Investing Group head Vladimir Dimitrov, on the other hand, offers a more cautious outlook. He believes the market is too optimistic in expecting Oracle to continue to rise in its share price. Dimitrov argues that revenue growth is already priced into the stock and is skeptical that Oracle's margins will return to pre-Cerner levels.
- Consensus EPS estimates: $1.33
- Consensus revenue estimates: $13.24 billion
- Earnings Outlook: Oracle has beaten earnings per share in 6 of the last 8 quarters and revenue in 3 of those reports.
It is also reported: Rubric (New York Stock Exchange:RBRK), ABIVAX Limited Company (NASDAQ:ABVX), Mission Produce (NASDAQ: AVO), Avid Bioservices (NASDAQ:CDMO), KalVista Pharmaceuticals (NASDAQ: CALF), Limoneira Company (NASDAQ:LMNR), Calavo Growers (CVGW), Matrix Service Company (MTRX), Skillsoft (SKIL), Prenetics Global Limited (PRE), MEI Pharma (MEIP), Phoenix Motor (PEV) and more.
Tuesday, September 10th
GameStop (GME)
Video game retailer GameStop (GME) is scheduled to release its earnings after the market closes on Tuesday. Comparable-store sales are expected to decline sharply, falling about 23% year over year.
GameStop shares have risen nearly 50% over the past six months, fueled by a resurgence of its meme stock status earlier this year, driven by Keith Gill, aka “Roaring Kitty.” However, volatility in the stock has decreased significantly over the summer.
Wall Street analysts are generally bearish and recommend a strong sell, while Seeking Alpha's quantitative rating system gives the stock a hold rating.
SA contributor PropNotes says that due to declining sales, persistent headwinds, and an inflated valuation, they are holding off on buying the stock. In an optimistic scenario, they estimate the fair value to be around $6.50 per share, which is 72% below the current stock price. As a result, they give GME a Strong Sell rating.
- Consensus EPS estimates: -$0.09
- Consensus revenue estimates: $895.67 million
- Earnings Outlook: GameStop has beaten EPS estimates in 4 of the last 8 quarters and revenue expectations in only 2 of those reports.
It is also reported:Academy of Sports and Outdoors (ASO), Dave & Buster's Entertainment (PLAY), InnovAge Holding (INNV), Petco Health and Wellness Company (WOOF), Bioceres Crop Solutions (BIOX), SelectQuote (SLQT), Cognyte Software (CGNT), Cantaloupe (CTLP), Lilium NV (LILM), Mama's Creations (MAMA), Evolution Petroleum (EPM), Dynagas LNG Partners LP Common Units (DLNG) and more.
Wednesday, September 11
Designer Brands (DBI)
Designer Brands (DBI) is scheduled to report second-quarter results before the market opens on Wednesday, with analysts expecting a decline in earnings due to slight year-over-year revenue growth. After a mixed first quarter, the company reaffirmed its guidance for fiscal year 2024.
Seeking Alpha's quantitative rating system has assigned a sell rating to DBI, amid a backdrop of the company's growth that has seen its momentum weaken relative to other consumer discretionary stocks. Meanwhile, Wall Street analysts maintain a hold recommendation.
- Consensus EPS estimates: $0.56
- Consensus revenue estimates: $816.14 million
- Earnings Outlook: The company has beaten EPS and revenue estimates in 4 of the last 8 quarters.
It is also reported:DouYu International Holdings (DOYU), Tsakos Energy Navigation Limited (TEN), Manchester United (MANU), Vera Bradley (VRA), MIND technology (MIND) and more.
Thursday, September 12th
Adobe (ADBE)
Adobe (ADBE) is scheduled to report quarterly results on Thursday after the market closes. Analysts are predicting year-over-year growth of about 10% in both revenue and earnings.
Seeking Alpha's quantitative rating system recently downgraded ADBE from Buy to Hold, just two weeks before the earnings report. However, Wall Street analysts still recommend the stock as a buy option.
SA Investing Group leader Danil Sereda argued that despite a recent recovery from a first-quarter decline, ADBE is already fully priced, assuming there are no major competitive disruptions in the generative ai space. Additionally, the company faces legal risks from an FTC lawsuit alleging deceptive underwriting practices. Based on these factors, Sereda recommends a Hold rating on the stock.
By contrast, Julian Lin, another SA Investing Group leader, notes that initial market fears about generative ai's negative impact on Adobe have been allayed. Adobe was one of the few software companies to achieve a “beat and surge” quarter, the analyst said, with generative ai proving to be a strong growth driver. Lin expects Adobe to achieve market-beating growth, supported by year-over-year revenue expansion and strong earnings performance.
- Consensus EPS estimates: $4.53
- Consensus revenue estimates: $5.37 billion
- Earnings Outlook: Adobe has consistently beaten earnings per share (EPS) over the past 8 quarters and revenue estimates in 6 of those reports.
It is also reported: The Kroger (KR), Sibanye Stillwater Limited (SBSW), Signet Jewelers Limited (SIG), Big Lots (New York Stock Exchange: BIG), Cracker Barrel Old Country Store (CBRL), Mesabi Trust (MSB), LightPath Technologies (LPTH), BEST (BEST), The Lovesac Company (LOVE) and more.
Friday, September 13th
Cheetah Mobile (CMCM) is one of the few companies that has confirmed an earnings report on what appears to be a quiet Friday.
