Even though the peak of earnings season has passed, next week will still see a number of big-name companies release their quarterly financial results. The earnings lineup includes companies in cybersecurity, semiconductors, retail, automotive and manufacturing.
market Participants will follow Zoom closely (NASDAQ: ZM),Nvidia(NASDAQ: NVDA), snowflake (NYSE:SNOW), Palo Alto Networks (Nasdaq: PANW), weekdays (Nasdaq: Sunday) and analog devices (NASDAQ:ADI).
Retailers will also be in the spotlight, with Target expected to release the latest news (NYSE:TGT), Lowe’s (LOW), Macy’s (M), Ross Stores (ROST), TJX Companies (TJX), Ralph Lauren (RL) and Urban Outfitters (URBN).
Investors will also be paying close attention to reports from a number of Chinese companies due next week, including social media company Weibo ( WB ), internet technology company NetEase ( NTES ), Bilibili ( BILI ) and online education provider Gaotu Technology ( GOTU).
Other notable reports include Medtronic (MDT), SunPower (SPWR), ZIM Integrated Shipping Services (ZIM), Toronto-Dominion Bank (TD), PDD Holdings (PDD), and Intuit (INTU).
The following is a summary of the major quarterly updates expected for the week of May 20-24:
Monday, May 20
Zoom Video Chat (ZM)
Zoom Video Communications (ZM) will report first-quarter results after the close on Monday, and analysts expect revenue and profit to rise 2% annually.
“Investors should buy Zoom ahead of its earnings release date,” said SA author Gary Alexander, noting that the stock has fallen about 10% year to date and currently trades at a lower valuation of about 8x Cash price to earnings ratio.
On the contrary, Sensor Unlimited, head of Seeking Alpha’s bearish investment group, believes that “Zoom stock’s valuation has compressed significantly in recent years, with low price-to-earnings and price-to-sales ratios. Technical indicators suggest that Zoom stock’s valuation has no clear direction.” Short-term. “
Sell-side analysts remain cautious on the stock, with a consensus rating of Hold. Meanwhile, Seeking Alpha’s Quantitative Ratings system recommends Buy.
- Consensus EPS estimate: $1.19
- Consensus revenue estimate: $1.13B
- Earnings Insights: Zoom has beaten EPS estimates 100% of the past eight quarters, with revenue beating estimates in six of those quarters.
Also reports: Palo Alto Networks (PANW), Li Auto (LI), Wix.com (WIX), Keysight Technologies (KEYS), Trip.com Group Limited (TCOM), EHang Holdings Co., Ltd. (EH), Niu Technology (NIU ), Global-E Online (GLBE), Beam Global (BEEM), Compugen (CGEN), Merrimack Pharmaceuticals (MACK), Ryanair (RYAAY), and others.
Tuesday, May 21
Lowe’s Company (LOW)
Just a week after Home Depot (HD) reported mixed first-quarter results, Lowe’s (LOW) is preparing to announce its quarterly update before the market opens on Tuesday. Lowe’s has outperformed Home Depot since the start of 2024 and is recommended as a Buy by Wall Street analysts. However, Seeking Alpha’s Quantitative Ratings system maintains a Hold rating on the stock.
Bill Ackman’s Pershing Square Capital Management announced its exit from Lowe’s (LOW) in the first quarter, following an announcement in February that it was exiting the home improvement retailer.
SA author Perseus Perspectives describes Lowe’s as a high-quality business that is experiencing a slowdown due to macroeconomic factors and recommends holding.
- Consensus EPS estimate: $2.96
- Consensus revenue estimate: $21.1B
- Earnings Insight: Lowe’s has beaten earnings per share estimates for eight consecutive quarters, with revenue beating estimates in three of those quarters.
Also reports: Amer Sports (AS), Xpeng (XPEV), Zim Integrated Shipping Services (ZIM), AutoZone (AZO), Toll Brothers (TOL), Ayro (AYRO), Trevena (TRVN), Cracker Barrel Old Country Store (CBRL) , Titan Pharmaceuticals (TTNP), Affimed NV (AFMD), Gaotu Techedu (GOTU), Burlington Stores (BURL), etc.
Wednesday, May 22
NVIDIA (NVDA)
Chipmaker NVIDIA (NVDA) will release its first-quarter earnings after the close on Wednesday, and analysts expect revenue to grow 240% and earnings per share to grow more than 400%.
SA author Justin Ward said that NVIDIA maintains its dominant position in GPU market share and has been at the forefront of AI technology advancements, continuing to exceed profit expectations over the past year.
While the sell-side analyst consensus is “Buy,” Seeking Alpha analysts maintain a “Hold” rating, citing concerns about unfavorable valuations.
- Consensus EPS estimate: $5.57
- Consensus revenue estimate: $24.5B
- Earnings Insight: Nvidia has beaten earnings per share estimates in six of the past eight quarters, while revenue has topped estimates in all quarters.
Target (TGT)
A week after Walmart (WMT) reported strong first-quarter results, Target (TGT) will report its quarterly earnings before the market opens on Wednesday.
After posting a strong fourth-quarter report, the company expects a weak first quarter, with comparable sales expected to fall 3% to 5%.
Citi recently upgraded its rating on the retailer to buy from neutral. Analyst Paul Lejuez noted that Target has become one of the winners in the industry by emphasizing value and has the potential to increase its EBIT margins.
Wall Street is broadly bullish on the stock, with sell-side analysts giving it a Buy rating and Seeking Alpha’s Quantitative Ratings system giving it a Strong Buy rating.
SA author Ling Ya Luo emphasized that there is uncertainty about TGT management’s focus on revenue growth and operating margins due to potential short-term challenges, which may affect Target’s revenue and margins. However, an increase in operating margin may improve the company’s return on investment and stock valuation.
- Consensus EPS estimate: $2.05
- Consensus revenue estimate: $24.5B
- Earnings Insight: The company has beaten EPS estimates in five of the last eight quarters, with revenue beating estimates in six of those quarters.
Also reports: Snowflake (SNOW), PDD Holdings (PDD), The TJX Companies (TJX), Analog Devices (ADI), Sibanye Stillwater Limited (SBSW), VF Corporation (VFC), Star Bulk Carriers (SBLK), Sociedad Química y Minera de Chile SA (SQM), Vipshop Holdings Limited (VIPS), Synopsys (SNPS), Williams-Sonoma (WSM), Hovnanian Enterprises (HOV), Petco Health and Wellness Company (WOOF), Universal Corporation (UVV), and others.
Thursday, May 23
Weekdays (WDAY)
Workday ( WDAY ) is scheduled to report first-quarter results after the market close on Thursday. Analysts expect earnings per share and revenue to rise sharply this quarter compared with the same period last year.
SA author Jay Capital said that Workday has a lot of growth opportunities, especially in overseas markets such as the UK, Spain, France and Japan, where growth has accelerated, showing a positive demand environment.
While Wall Street analysts rate the stock a “buy,” Seeking Alpha’s quantitative ratings system considers the stock a “hold” due to valuation concerns.
- Consensus EPS estimate: $1.58
- Consensus revenue estimate: $1.97B
- Earnings Insight: The company has beaten EPS estimates in seven of the last eight quarters, while revenue beat estimates in all quarters.
Also reports: Polestar Automotive Holding (PSNY), Medtronic (MDT), SunPower Corporation (SPWR), Intuit (INTU), Bilibili (BILI), Ross Stores (ROST), NetEase (NTES), KNOT Offshore Partners LP Common Units (KNOP), Weibo BoCorporation (WB), 23andMe Holding (ME), National Grid (NGG), Emeren Group (SOL), Ralph Lauren Corporation (RL), Lions Gate Entertainment (LGF.A), Deckers Outdoor Corporation (DECK), BJ’s Wholesale Club Holdings (BJ), Maxeon Solar Technologies (MAXN), The Children’s Place (PLCE), and others.
Friday, May 24
Booz Allen(BAH)
Booz Allen ( BAH ) is set to release its quarterly financial report before the bell on Friday, and analysts are forecasting year-over-year earnings and revenue growth.
Despite the stock’s 20% gain so far in 2024, Seeking Alpha’s Quantitative Ratings system rates the stock a “hold,” while Wall Street analysts recommend a “buy.”
Waterside Insight noted that Booz Allen’s long-standing relationships with various U.S. government agencies are facing increasing competition from other contractors and service providers. While the company’s revenue and EBITDA have shown strong six-year compound annual growth rates (OTC:CAGR), its earnings and free cash flow have been declining since 2022. A new page Waterside Insight said the company has been acquired by the Department of Justice and has completed two major acquisitions in the past two years.
- Consensus EPS estimate: $1.23
- Consensus revenue estimate: $2.72B
- Earnings Insight: The company has beaten EPS estimates in seven of the last eight quarters, while revenue beat estimates in all quarters.
Also reports: The Buckle (BKE), Mesa Laboratories (MLAB), Fanhua (FANH), Sunlands Technology Group (STG), Trinity Biotech plc (TRIB), CorVel Corporation (CRVL), CureVac NV (CVAC), UP Fintech Holding Limited (TIGR) and more.
