Wall Street has achieved a notable lull in the pace of quarterly data. However, investors are eagerly awaiting major announcements from FedEx (NYSE:FDX) and a number of major consumer brands, such as Nike (NYSE: NO), Lululemon Athletics (NASDAQ:LULU) and chewy (NYSE:CHWY), which could provide insights into consumer confidence and spending trends.
Technology companies are also in focus, with earnings results expected from Micron Technology (NASDAQ:MU), Accenture (NYSE:ACN), Nano Dimension (NNDM) and JinkoSolar Holding (JKS). Additionally, the week will also feature earnings results from XPeng (XPEV), General Mills (GIS), PDD Holdings (PDD), SNDL (SNDL), StoneCo (STNE), BioNTech SE (BNTX), Darden Restaurants (DRI), HUYA (HUYA) and Baozun (BZUN).
Below is a rundown of the main quarterly updates expected in match week 18 to 22:
Monday 18 March
StoneCo (STNE)
StoneCo (STNE), a provider of financial technology and software solutions, will release its fourth-quarter earnings after the market closes on Monday.
The stock, which is up nearly 91% over the past year, is viewed favorably by market participants, receiving a Strong Buy rating from Seeking Alpha’s Quant Rating system and a Buy consensus recommendation from sell-side analysts.
According to SA author PropNotes, “With strong revenue growth and improved financial results, StoneCo is reasonably valued at 18 times net profit. A strong earnings report could potentially trigger further share price expansion.”
- Consensus EPS Estimates: $0.30
- Consensus revenue estimates: $685.01 million
- Earnings Analysis: STNE has exceeded EPS in 6 of the last 8 quarters and revenue in 5 of those reports.
Also reporting: Science Applications International Corporation (SAIC), Niu Technologies (NIU), DLocal Limited (DLO), FreightCar America (RAIL), Comtech Telecommunications (CMTL), Alpine Immune Sciences (ALPN), Bit Digital (BTBT), Eyenovia (EYEN) , National CineMedia (NCMI), JOYY (YY), FinVolution Group (FINV), Zepp Health Corporation (ZEPP) and others.
Tuesday 19 March
XPeng (XPEV)
XPeng (XPEV) will release fourth-quarter financials on Tuesday, before the bell. Shares of the Chinese electric vehicle maker have fallen about 36% this year, partly due to the impact of the Chinese New Year period on the company’s monthly delivery numbers.
Despite this, Seeking Alpha’s Quant Rating system upgraded the stock to Hold from a previous Sell rating in the final week of February, while Wall Street analysts maintain a Buy rating.
According to SA author Dair Sansyzbayev, “XPEV’s share price has fallen 48% since October 2023, making its valuation more at risk. However, the viability of the business model is worrying due to opposing movements of revenue and EPS. Fourth quarter 2023 deliveries could lead to potential revenue improvement, but cautious guidance is expected due to slowing deliveries in early 2024.”
- Consensus EPS Estimates: -$0.42
- Consensus revenue estimates: $1.75 billion
- Earnings Insight: Xpeng has beaten EPS and revenue estimates in 3 of the last 8 earnings reports.
Also reporting: Smith Douglas Homes (SDHC), Bridger Aerospace Group Holdings (BAER), ZKH Group Limited (ZKH), Moatable (MTBL), HUYA (HUYA), Tencent Music Entertainment Group (TME), Precigen (PGEN), HealthEquity (HQY) , Oragenics (OGEN), ZTO Express (Cayman) (ZTO), Cyclacel Pharmaceuticals (CYCC), Corvus Pharmaceuticals (CRVS) and more.
Wednesday 20 March
Micron Technology (MU)
Micron Technology (MU) will report its quarterly earnings after the close on Wednesday.
Recently, Stifel upgraded the memory chip maker to Buy from Hold, with analyst Brian Chin raising the price target to $120 from $80. Chin believes that tighter conditions in the supply of dynamic random access memory will allow Micron to optimize its product mix, including DDR5/LPDDR5, high-capacity DIMMs and HBM, and enhance the cyclical recovery in gross margins.
According to Stifel, Micron is experiencing a “sweet spot” for memory, which should drive multiple expansions thanks to its increased connection to AI via high-bandwidth memory.
Meanwhile, the stock continues to receive a Hold rating from Seeking Alpha’s Quant Rating system, as opposed to a Buy recommendation from Wall Street analysts.
“Micron Technology is poised to capitalize on the adoption of artificial intelligence and the growing AI server retooling market through its partnership with Nvidia to sell HBM3e memory for AI GPUs, with a focus on innovation in the use of AI DRAM “, writes Noah’s Arc Capital Management, SA author.
- Consensus EPS Estimates: -$0.26
- Consensus revenue estimates: $5.34 billion
- Earnings Analysis: Micron has exceeded EPS expectations in 6 of the last 8 quarters and has exceeded revenue estimates in half of those reports.
Also reporting: General Mills (GIS), BioNTech SE (BNTX), PDD Holdings (PDD), Chewy (CHWY), Ideanomics (IDEX), JinkoSolar Holding (JKS), KB Home (KBH), Five Below (FIVE), Signet Jewelers Limited (SIG), UP Fintech Holding Limited (TIGR), CuriosityStream (CURI), Ollie’s Bargain Outlet Holdings (OLLI), Top Ships (TOPS), Avinger (AVGR), Bakkt Holdings (BKKT), Avino Silver & Gold Mines (ASM) , WM Technology (MAPS), Mogo (MOGO), Kingsoft Cloud Holdings Limited (KC), Guess?(GES) and more.
Thursday 21 March
Fedex (FDX)
FedEx (FDX), based in Memphis and a major player in package delivery services, will announce its quarterly earnings after the closing bell on Tuesday. Despite a strong performance, with a gain of more than 29% over a 12-month period, the company receives a Hold rating from SA’s Quant Ratings, in contrast to the Buy consensus rating held by Wall Street analysts.
SA Investment Group leader Leo Nelissen points out that while FedEx faces intense competition from Amazon, analyst expectations and cost-saving strategies suggest potential growth. However, Nelissen advises investors caution due to FedEx’s diversification efforts and technological advancements in the ever-changing e-commerce landscape.
In contrast, Stock Waves, another leader of the SA Investment Group, takes a more bearish stance, pointing out that FedEx’s pricing structure indicates a potential bearish pattern in the future. However, Stock Waves warns that this assumption could be incorrect, considering the methodology used to track and project stocks like FedEx.
- Consensus EPS Estimates: $3.51
- Consensus revenue estimates: $22.09 billion
- Earnings Analysis: FedEx has beaten EPS estimates in 4 of the last 8 quarters, exceeding revenue expectations in only one of those reports.
Nike (NIKE)
Nike (NKE) will report quarterly results after the close on Thursday.
After a mixed performance in the previous quarter, Nike CFO Matthew Friend characterized the company’s financial results as a turning point towards more profitable growth. Looking ahead to a weaker revenue outlook for the second half, Nike remains committed to strong gross margin execution and disciplined cost management.
The stock has a Hold rating from Seeking Alpha’s Quant Rating system, reflecting a more cautious attitude than the consensus Buy rating from Wall Street analysts.
Wiebe De Ruyck, author of SA, notes that NKE’s valuation remains elevated, potentially exposing it to downside risk if market confidence in its growth prospects wanes.
- Consensus EPS Estimates: $0.76
- Consensus revenue estimates: $12.29 billion
- Earnings Analysis: The company has beaten EPS estimates 7 times over the last 8 quarters and revenue expectations in 6 of these reports.
Also reporting: Lululemon Athletica (LULU), SNDL (SNDL), Nano Dimension (NNDM), Accenture (ACN), Baozun (BZUN), Darden Restaurants (DRI), Winnebago Industries (WGO), BIOLASE (BIOL), Cellectis SA (CLLS) , Academy Sports and Outdoors (ASO), Commercial Metals Company (CMC), FactSet Research Systems (FDS), Rockwell Medical (RMTI), VEON (VEON), AAR (AIR) and more.
Friday 22 March
The end of the week will see relatively few earnings reports, with Sunlands Technology Group (STG), AstroNova (ALOT), Femasys, (FEMY) and MAIA Biotechnology (MAIA) all reporting their earnings in pre-market hours.