Earnings week ahead: Nike, Carnival, Constellation Brands, and more

As the calendar flips to October, investors can expect a relatively sparse earnings schedule. However, despite the thinner docket, several notable companies are set to report their financial results.

Key highlights for this week include NIKE (NKE), Carnival Corporation (CCL), Constellation Brands (STZ) and Conagra Brands (CAG). Additionally, earnings from McCormick & Company (MKC), Paychex (PAYX), Lamb Weston (LW), Levi Strauss (LEVI) and NovaGold Resources (NG) will also be in focus.

Below is a rundown of major quarterly updates anticipated in the week of September 30 to October 4:

Monday, September 30

Carnival Corp. (CCL)

Carnival (CCL) is due to release its quarterly earnings before the opening bell on Monday, with analysts expecting 34% Y/Y bottom-line growth and 14% Y/Y top-line growth.

SA investing group leader Manika notes that Carnival’s upcoming results are likely to show significant earnings upside and margin expansion, despite softer revenue growth compared to the previous quarter. However, the analyst argued that Carnival’s forward P/E ratio remains unconvincing for a Buy, although further forecast upgrades could potentially shift that outlook.

Seeking Alpha’s Quant Rating system maintains a Strong Buy recommendation on CCL, reflecting optimism about its growth and profitability. Sell-side analysts also give the stock a bullish recommendation, with a consensus Buy rating on the stock.

• Consensus EPS Estimates: $1.15
• Consensus Revenue Estimates: $7.81B
• Earnings Insight: Carnival has beaten EPS estimates in 7 of the last 8 quarters and surpassed revenue expectations in 6 of those reports.

Also reporting: ReposiTrak (TRAK), Marti Technologies (MRT), NeoVolta (NEOV), Natuzzi S.p.A. (NTZ), Mesa Air Group (MESA), Precision Optics Corporation (POCI), WISeKey International Holding AG (WKEY) and more.

Tuesday, October 1

Nike (NKE)

Nike (NKE) is set to report its earnings on Tuesday after the closing bell. Along with mixed results in its last quarterly update, the company issued a conservative outlook, with full-year sales guidance that fell short of expectations.

Concerns have been raised regarding consumer demand in North America, recovery in China, macroeconomic pressures and increased competition. Then-CEO John Donahoe described FY25 as a ‘transition year,’ projecting mid-single-digit revenue declines. After the last earnings report, Nike’s stock dropped as much as 20%, marking its largest intraday percentage drop since 2001.

Despite the potential long-term benefit of reappointing Elliott Hill as CEO, J.P. Morgan placed Nike on its Negative Catalyst Watch, citing recent headwinds. The firm also lowered its FQ1 EPS estimate to $0.48, compared to the $0.52 consensus. Analyst Matthew Boss noted concerns in China, including consumer caution, digital promotions, and local brand competition, and cut Nike’s price target to $80.

SA author Luca Socci rates Nike as a Sell, acknowledging its strong fundamentals but highlighting volatile profit margins and returns. While the stock has performed well as a short-term trade, Socci contended that it lacks the characteristics of a long-term compounder, due to challenges such as stiff domestic competition and cautious consumer spending.

Seeking Alpha’s Quant Rating system assigns a Hold rating to Nike, a more cautious view than the consensus Buy rating from Wall Street analysts.

• Consensus EPS Estimates: $0.53
• Consensus Revenue Estimates: $11.64B
• Earnings Insight: Nike has exceeded EPS estimates 7 times and revenue expectations 5 times in the last 8 quarters.

Also reporting: Paychex (PAYX), McCormick & Company (MKC), Lamb Weston Holdings (LW), Acuity Brands (AYI), Cal-Maine Foods (CALM), United Natural Foods (UNFI), Resources Connection (RGP) and more.

Wednesday, October 2

Conagra Brands (CAG)

Conagra Brands (CAG) is scheduled to release its earnings results in the premarket hours on Wednesday. Analysts are expecting a Y/Y decline in both revenue and earnings per share.

Shares of the consumer staples provider have received a Hold rating from both sell-side analysts and Seeking Alpha’s Quant Rating system.

Last month, Conagra completed the divestiture of its 51.8% stake in Agro Tech Foods Limited, marking a significant step in its strategy to maximize shareholder value. As a result of this transaction, Conagra Brands no longer consolidates the results of the India-based Agro Tech Foods in its financial statements.

• Consensus EPS Estimates: $0.60
• Consensus Revenue Estimates: $2.84B
• Earnings Insight: Conagra has beaten EPS estimates for 8 consecutive quarters, though it has exceeded revenue expectations in only half of those reports.

Also reporting: RPM International (RPM), Levi Strauss & Co. (LEVI), Xiao-I Corporation (AIXI), Moolec Science SA (MLEC) and more.

Thursday, October 3

Constellation Brands (STZ)

Constellation Brands (STZ) is scheduled to release its financial results before the market opens on Thursday. Analysts have trimmed EPS and revenue estimates 8 and 11 times, respectively, in the 90 days ahead of the results.

Despite the perceived headwinds, Constellation Brands has attracted Buy ratings from both Seeking Alpha’s Quant Rating system and Wall Street analysts.

In response to several quarters of weak U.S. consumer demand and negative trends in the wholesale sector, the company has revised its sales growth expectations and will incur a goodwill charge of up to $2.5B due to a lower valuation of its wine and spirits business.

For fiscal year 2025, Constellation Brands now anticipates reported net income of $3.05 to $7.92 per share, significantly reduced from the initial guidance of $14.63 to $14.93 per share. Enterprise net sales growth is projected at 4% to 6%, down from the prior forecast of 6% to 7%.

SA author Gytis Zizys, who gives Constellation Brands a Hold rating, notes that the company’s wine business is struggling, while the beer segment remains robust. However, the overall outlook is uncertain.

• Consensus EPS Estimates: $4.08
• Consensus Revenue Estimates: $2.94B
• Earnings Insight: The company has exceeded EPS estimates in 7 of the last 8 quarters but missed revenue expectations in 3 of those reports.

Also reporting: Village Super Market (VLGEA), AngioDynamics (ANGO), Lifecore Biomedical (LFCR), Starbox Group Holdings (STBX), Phoenix Motor (PEV), Resources Connection (RGP) and more.

Friday, October 4

Apogee Enterprises (APOG)

Apogee Enterprises (APOG) is scheduled to release its FQ2 earnings results before the market opens on Friday. The Minnesota-based architectural-products company has seen its stock rise by approximately 30% on a year-to-date basis and 50% over the past year.

While Seeking Alpha’s Quant Rating system and Wall Street analysts maintain a Hold rating on the stock, investing group leader Daniel Jones suggests a buying opportunity despite expecting a decline in revenue and earnings. Jones maintains a positive long-term outlook, citing a significant backlog in the company’s Architectural Services segment.

• Consensus EPS Estimates: $1.23
• Consensus Revenue Estimates: $335.62M
• Earnings Insight: Apogee has beaten EPS expectations in consecutive 8 quarters and exceeded revenue expectations in only 3 times in that span.