Earnings week ahead: FDX, NKE, CCL, BB, ACN, MU, and more
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The upcoming week may be a quiet one for earnings reports, but several notable companies are poised to grab investor attention. Tech stalwart BlackBerry (BB), logistics giant FedEx (FDX) and chipmaker Micron Technology (MU) are expected to offer insights into their respective industries.
In addition, consumer-focused companies like NIKE (NKE) and Carnival (CCL), alongside consulting leader Accenture (ACN), are scheduled to report. Other key reports to watch include General Mills (GIS), Lennar (LEN), Conagra Brands (CAG), Organigram (OGI) and Paychex (PAYX), which will provide broader signals across various sectors.
These earnings could offer valuable updates on market trends and corporate performance heading into the end of the year.
Below is a rundown of major quarterly updates anticipated in the week of December 16 to December 20:
Monday, December 16
The week will begin with relatively few earnings reports. Compass Minerals (CMPS), Red Cat Holdings (RCAT) and RCI Hospitality Holdings (RICK) are scheduled to report their earnings after the bell.
Tuesday, December 17
HEICO (HEI)
HEICO (HEI) is set to report its FQ4 earnings on Monday, with analysts predicting nearly 48% profit growth on top-line growth of over 10%.
While Wall Street analysts maintain a Buy rating, Seeking Alpha’s Quant Rating system is more cautious, assigning a Hold rating.
Dhiren Bechai, an SA Investing Group leader, notes that HEICO’s EBITDA is expected to grow at 17.5% annually, with free cash flow rising by 26.8%, fueled by strong M&A activity. However, despite this growth, Bechai considers HEI overvalued compared to its peers, with limited upside potential based on its 5-year median EV/EBITDA, leading to a cautious outlook.
- Consensus EPS Estimates: $0.98
- Consensus Revenue Estimates: $1.03B
- Earnings Insight: The company has beaten revenue and EPS estimates in 7 of the past 8 quarters.
Also reporting: REE Automotive (REE), Cheetah Mobile (CMCM), NeuroOne Medical Technologies (NMTC), Worthington Enterprises (WOR), Lavoro Limited (LVRO), AMREP Corporation (AXR), AGM Group Holdings (AGMH), Amentum Holdings (AMTM), Oriental Culture Holding (OCG), Ark Restaurants (ARKR), Mobilicom Limited (MOB) and more.
Wednesday, December 18
Micron (MU)
Micron Technology (MU) is set to release its FQ1 earnings after the closing bell on Wednesday, with analysts forecasting an impressive 84% Y/Y surge in revenue, driven by robust demand for memory chips in artificial intelligence applications.
Sell-side analysts maintain a Strong Buy recommendation for the stock, while Seeking Alpha’s Quant Rating system aligns closely, assigning it a Buy rating.
SA Investing Group leader Victor Dergunov underscores the bullish case for Micron, citing strong AI-driven demand, attractive valuation and robust earnings potential as key factors. Dergunov anticipates significant stock appreciation through year-end and into 2025, with technical analysis suggesting limited downside risk.
However, Hunting Alpha, another SA contributor, takes a more cautious stance. While acknowledging Micron’s strong AI demand and earnings growth, the analyst highlights potential risks that could weigh on the stock’s performance. Hunting Alpha advises investors to stay vigilant regarding broader market conditions and potential downside risks, rather than assuming Micron is a definitive buy-and-hold opportunity.
- Consensus EPS Estimates: $1.77
- Consensus Revenue Estimates: $8.71B
- Earnings Insight: Micron has beaten EPS and revenue expectations in 6 of the past 8 quarters.
Also reporting: General Mills (GIS), Lennar Corporation (LEN), Jabil (JBL), The Toro Company (TTC), ABM Industries Incorporated (ABM), MillerKnoll (MLKN), Steelcase (SCS) and more.
Thursday, December 19
FedEx (FDX)
Memphis-based package delivery giant FedEx (FDX) is scheduled to release its FQ2 earnings after the market closes on Thursday. The stock has gained over 12% YTD, reflecting investor confidence despite mixed signals from analysts.
Seeking Alpha’s Quant Rating system currently assigns a Hold rating to FedEx, in contrast to Wall Street analysts, who maintain a Buy recommendation.
Bernstein Societe Generale Group recently downgraded FedEx to Market Perform from Outperform, ahead of the earnings release, citing elevated execution, event, and policy risks. The firm also lowered its price target to $316 from $337, expressing concerns about near-term guidance and uncertainties surrounding the spin-off of the LTL freight segment.
Despite these challenges, SA Investing Group leader Daniel Jones remains optimistic about FedEx’s prospects. Jones points to the company’s DRIVE program, which aims to achieve $4B in annual savings by 2025, with $2.2B targeted for this fiscal year, as a critical driver of long-term growth. Additionally, he notes that FedEx’s lower net leverage ratio compared to UPS, coupled with its attractive valuation, strengthens its investment appeal.
- Consensus EPS Estimates: $3.95
- Consensus Revenue Estimates: $22.12B
- Earnings Insight: FedEx has beaten EPS estimates in 6 of the past 8 quarters, missing revenue expectations in 7 of those reports.
Also reporting: NIKE (NKE), FuelCell Energy (FCEL), Accenture (ACN), Paychex (PAYX), Conagra Brands (CAG), Darden Restaurants (DRI), Anavex Life Sciences (AVXL), CarMax (KMX), Cintas Corporation (CTAS) and more.
Friday, December 20
Carnival (CCL) is set to report its FQ4 earnings on Friday. The cruise line operator has been gaining attention from analysts and investors alike, following its strong performance in previous quarters.
Citigroup recently reiterated its Buy rating on Carnival and raised its price target by 7% to $30. Analyst James Hardiman expressed confidence in Carnival’s potential, noting that sustained demand levels could significantly strengthen the company’s business model. Hardiman highlighted Carnival’s minimal order book, which positions the company well for significant deleveraging and improved returns on invested capital.
SA Investing Group leader Howard Jay Klein also holds a positive outlook on Carnival, citing its strong Q3 2024 performance and management’s confident guidance for the remainder of 2024 and into 2025. Klein emphasized that Carnival’s appeal spans generations, with robust growth among Millennials complementing its established base of over-62 customers.
Carnival currently holds a Strong Buy rating from Seeking Alpha’s Quant Rating system, aligning closely with the consensus Buy rating from sell-side analysts. As demand for travel and leisure continues to recover, Carnival’s strategic positioning and broad customer appeal make it a key stock to watch.
- Consensus EPS Estimates: $0.07
- Consensus Revenue Estimates: $5.92B
- Earnings Insight: The company has beaten EPS estimates in straight 8 quarters and revenue expectations in 7 of those reports.
Also reporting: Winnebago Industries (WGO) and more.