Despite a relatively lean earnings schedule next week, there are still several notable companies scheduled to release their financial numbers. The results have the potential to have a major impact on expectations, not only for specific companies but also for major industries such as housing, consumer commodities and enterprise software.
In particular, investors are eager for updates from Oracle (New York Stock Exchange:ORCL), Adobe (NASDAQ:ADBE), Costco (NASDAQ:COST), Fuel cell power (NASDAQ:FCEL) and Lennar (LEN), among others.
Below is a summary of the main quarterly updates planned for the week of December 11-15:
Monday December 11
Oracle (ORCL)
Texas-based software giant Oracle (ORCL) will release its second-quarter earnings results after the market closes on Monday. Analysts expect earnings per share and revenue to grow year over year, driven by its artificial intelligence initiatives.
The pursuit of Alpha's Quant Rating system raises some questions about new short-term advantages. The quantitative measures measurement process gives the stock a Hold rating. Meanwhile, Wall Street analysts rate the stock a Buy.
SA author Dair Sansyzbayev gives a Strong Buy rating to the stock despite potential headwinds to profitability from the Cerner acquisition. He notes that the company's biggest bet is the cloud business, and its strong balance sheet allows for aggressive innovation and dividend growth. The stock is significantly undervalued, presenting an attractive investment opportunity with a perceived upside potential of 36%.
- Consensus EPS Estimates: $1.32
- Consensus revenue estimates: $13.05 billion
- Earnings Outlook: Oracle has surpassed revenue and earnings per share estimates in 6 of the last 8 quarters.
Also informing: Blue Bird (BLBD), Caey's (CASY), Inotiv (NOTV) and more.
Tuesday December 12
Fuel cell energy (FCEL)
FuelCell Energy (FCEL) is scheduled to report its fourth-quarter results before the opening bell on Tuesday. Analysts expect a year-on-year decline in revenue, while EPS is expected to grow.
The stock, which lost more than 50% of its value in 2023, earns a Hold rating from both Seeking Alpha's Quant Rating system and Wall Street analysts.
“Given that FuelCell Energy, Inc. will likely lose money for many years on the horizon and will likely continue to dilute shareholders through additional capital raises, there is no compelling reason to own the stock right now despite the enormous share price decline over the last few years,” writes the leader of the SA investment group The Insiders Forum.
- Consensus EPS Estimates: -$0.09
- Consensus revenue estimates: $25.66 million
- Earnings Outlook: The company surpassed revenue estimates in 6 of the last 8 quarters and EPS estimates in only 2 of those reports.
Also informing: Johnsons Control (JCI), Mama's Creation (MAMA), EMCORE (EMKR) and more.
Wednesday December 13
Adobe (ADBE)
Adobe (ADBE) will update investors on its fourth-quarter performance on Wednesday after the closing bell. Following the upbeat third-quarter results, the company guided fourth-quarter revenue in the range of $4.975 billion to $5.025 billion and adjusted EPS between $4.10 and $4.15. Analysts anticipate EPS and revenue to grow year-over-year in the quarter.
“Adobe anticipates strong Q4 2023 revenue, solid performance and market capitalization. The company's financial strength is evident in the growth in Q3 2023 revenue and profitability. Technical analysis suggests that the price of Adobe stock may hit new highs,” says SA author Muhammad Umair.
- Consensus EPS Estimates: $4.14
- Consensus revenue estimates: $5.02 billion
- Earnings Outlook: Adobe has surpassed EPS in the last 8 consecutive quarters and revenue estimates in 6 of those reports.
Also informing: ABM Industries (ABM), Cognyte Software (CGNT), Photronics (PLAB), REV Group (REVG), MIND technology (MIND), Nordson (NDSN), Ocean Power Technologies (OPTT), Zedge (ZDGE) and more.
Thursday December 14
Costco Wholesale Corporation (COST)
Costco (COST) will report its first-quarter earnings results after the market closes on Thursday. Analysts expect a year-over-year increase in revenue and results for the big-box retailer, which recently revealed a 5% increase in November revenue.
While Wall Street analysts express optimism with a Buy rating, Seeking Alpha's Quant Rating system has issued a more conservative Hold rating.
In particular, SA author IM Investing expresses concern about the stock's valuation, saying: “The business is extremely attractive, but I can't say the same for the valuation.”
- Consensus EPS Estimates: $3.42
- Consensus revenue estimates: $57.77 billion
- Earnings Outlook: Costco has surpassed revenue expectations in 5 of the last 8 quarters and missed EPS estimates only twice in that span.
Also informing: Jabil (JBL), Lennar (LEN), KNOT Offshore Partners (KNOP), Mesa Air Group (MESA), Quanex Building Products (NX) and more.
Friday December 15
Restaurants in Darden (New York Stock Exchange:DRI)
Darden Restaurants (DRI), the parent company of The Capital Grille, Olive Garden, LongHorn Steakhouse and more, is scheduled to release its second-quarter earnings on Friday before the opening bell. Analysts expect year-on-year earnings growth.
Both Wall Street analysts and Searching Alpha's Quant Rating system maintain a Buy rating on the stock.
Geoffrey Seiler, an author of Seeking Alpha who maintains a neutral stance on the stock, notes: “The main risk to DRI is a shift in consumer and dining out trends, which could lead to multiple short squeezes and higher estimates.” declines, which could put the stock below $100.”
- Consensus EPS Estimates: $1.73
- Consensus revenue estimates: $2.74 billion
- Earnings Outlook: Darden has surpassed revenue and earnings per share estimates in 6 of the last 8 quarters.
