December 7, 2022

5 earnings reports for investors to watch for next week


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Editor’s Note: This article is regularly updated to bring you relevant and up-to-date information.

Christmas and the end of 2021 are upon us. And the year ends with some notable earnings reports that have the potential to influence any Gathering of Santa Claus we come to close what has been a volatile December.

In the next cropped week of trading, we’ll hear from a large sportswear company, a tech company, a major food maker, a pharmaceutical chain, and one of the nation’s largest used car dealers.

Taken together, these profits could help generate a year-end rally in stocks or see 2021 end on a negative note. And while there will be fewer earnings reports than usual over the coming week, the reporting companies are leaders in their respective industries and their financials are still highly anticipated on Wall Street.

Here are five stocks that are paying off the week of December 20:

  • Nike (NYSE:NKE)
  • Micronic Technology (NASDAQ:UM)
  • General Mills (NYSE:GIS)
  • Rite Help (NYSE:RAD)
  • CarMax (NYSE:KMX)

Earnings reports next week: Nike (NKE)

Source: TY Lim / Shutterstock.com

The week kicks off with a highly anticipated earnings report from apparel and apparel giant Nike. Analysts will be watching to see if the Beaverton, Oregon-based company has made further progress in accelerating its online sales and direct-to-consumer business that had been strong throughout the pandemic. .

The shareholders hope that a strong quarterly impression will help drive NKE stock higher after the stock price has traded broadly sideways over the past month. Year-to-date Nike shares are up 14.6% to $ 161.63 at the start of Dec. 17, and they tend to make big moves in the wake of the earnings reports of the year. ‘business. The share price jumped nearly 20% the day after the company’s results last June.

For the December 20 third quarter report, Wall Street expects Nike to report revenue of $ 11.25 billion and earnings per share (EPS) of 63 cents. Any bullish blow should help push NKE stock up.

As mentioned, Nike continues to focus on digital sales, which has been 21% of its turnover during her previous quarter as she continues to push further into e-commerce. Nike management has forecast that digital sales will account for 40% of total revenue by 2025. In addition, Nike is wasting no time entering the digital world known as the “metaverse”, recently announcing the creation of its own virtual world which will be available. through Roblox (NYSE:RBLX) and called “Nikeland”.

Micronic Technology (MU)

Micron Stock is well positioned for an uptrend in 2020 ... and beyond

Source: Valeriya Zankovych / Shutterstock.com

Speaking of stocks that have been treading water lately, shares of computer data storage company Micron Technology have edged up 3% in the past six months. At around $ 82 a share, MU stock is trading at the same level today as it was in June of this year. While the stock price has not fallen significantly, it has essentially stagnated.

Shareholders will seek the company’s earnings on December 20 to provide a much needed catalyst to release the stock and drive it up. Wall Street analysts predicted that Micron Technology will report revenues of $ 7.67 billion and earnings per share of $ 2.11 for its most recent quarter when it releases its results on December 20.

Despite being in business since 1978, Micron Technology is currently in a growth mode, having announced that it will spend $ 150 billion over the next decade to improve its production capabilities and research and development unit. The company feels comfortable making such a large investment because of the boom in memory demand.

Industry analysts forecast Micron’s revenue to grow 15.5% in 2022, followed by a 16.9% increase in 2023. Micron forecast that its earnings this year will grow 45% and 24% in 2022. the robust forecast should help move the MU stock in the right direction.

Earnings Reports Next Week: General Mills (GIS)

General Mills Cereals (GIS)

Source: Jack drawings / Shutterstock.com

Food giant General Mills releases its latest figures on December 21. The Minneapolis-based company behind popular brands like Yoplait yogurt, Cheerios cereal and Häagen-Dazs ice cream is expected to report revenue of $ 4.84 billion and EPS of $ 1.05.

General Mills is embarking on an aggressive growth strategy it calls “Accelerate” which the company says is helping it determine “how to win” and “where to play” in the food business. As part of this strategy, General Mills has announced its intention to unload its European pulp trade to a French-based ready-to-cook company called Cerelia. Terms of the deal were not disclosed, but it shows how General Mills is streamlining its operations.

Efforts to focus its business have helped GIS stock, which is up 16% year-on-year to $ 68.79 per share at the start of December 17, including a gain of nearly 8% during the month. last. The company’s stock price recently climbed after Deutsche Bank reiterated its “buy” rating on General Mills shares and raised its price target to $ 72.00, which would be 6% higher than its current share price. Several other analysts, including Piper Sandler, have increased their goals on General Mills shares recently. Piper Sandler rated the stocks “overweight” and gave them a high price target of $ 74 per share.

Rite Aid (RAD)

Source: Susan Montgomery / Shutterstock.com

Also on December 21, the pharmaceutical company Rite Aid published its latest results. Wall Street expects the company to report revenue of $ 6.32 billion and EPS loss of 32 cents. Anything better than analyst consensus expectations will be good news for RAD stock, which has been beaten 43% in the past six months to now trade at $ 11.98 per share. For the whole of 2021, the Rite Aid share price is down 23%.

The decline came as the pharmaceutical chain failed to capitalize on the rollout of Covid-19 vaccines, which the company expected to increase foot traffic at its nearly 2,500 outlets.

The company continues to hope that it will benefit from increased demand for Covid-19 vaccines and tests through the end of the year, especially with the emergence of the omicron variant. During his last publication of results, Rite Aid has raised its profit forecast for the entire year to a range of $ 460 million to $ 500 million.

Earnings Reports Next Week: CarMax (KMX)

a Carmax (KMX) sign on a store front

Source: Jonathan Weiss / Shutterstock.com

Used-vehicle retailer CarMax releases results just before the holidays on December 22, and the results should provide a good indication of the state of auto sales to end what has been a strong year. With the production of new vehicles hampered by the global semiconductor shortage, used vehicle sales saw strong demand, which benefited KMX’s inventory.

The CarMax share price has climbed nearly 47% year-to-date to $ 137.05 per share as of December 17. This gain includes an increase of almost 20% over the past six months. Over the past decade, the CarMax share has generated a return of 380%. Analyst forecasts revenues of $ 7.34 billion and EPS of $ 1.46 for its latest quarterly report.

Currently, CarMax controls around 3.5% of the market for used vehicles less than 10 years old. However, CarMax predicted that it could increase this market share by up to 5% over the next five years. To that end, the Richmond, Virginia-based company has beefed up its online, credit, financing and delivery services to give it a more omnichannel selling approach. Everything indicates that the strategy is working, with online sales accounting for 9% of the company’s total revenue in the last quarter, up from 3% in the same period the year before.

In addition, the stock KMX stay affordable with a price / earnings (P / E) ratio of 20.9 times this year’s earnings. This corresponds to the average P / E ratio of the shares listed on the S&P 500 index.

At the date of publication, Joël Baglole did not hold (directly or indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to the publication guidelines of InvestorPlace.com.

Joel Baglole has been an economic journalist for 20 years. He spent five years as a reporter for the Wall Street Journal and also wrote for The Washington Post and Toronto Star newspapers, as well as for financial websites such as The Motley Fool and Investopedia.

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