Earnings week ahead: Adobe, Oracle, Kroger, GameStop and more

Despite a lighter earnings calendar next week, several high-profile companies are set to report their financial figures. The results could significantly influence market sentiment across key sectors such as enterprise software and consumer staples.

Notably, investors are eager for updates from Oracle (NYSE:ORCL), GameStop (NYSE:GME), Adobe (NASDAQ:ADBE), Kroger (NYSE:KR), Manchester United (NYSE:MANU) and Signet Jewelers (NYSE:SIG), among others.

Below is a rundown of major quarterly updates anticipated in the week of September 9 to 13:

Monday, September 9

Oracle (ORCL)

Texas-based software giant Oracle (ORCL) is set to release its quarterly results after the market closes on Monday. Analysts anticipate 6% year-over-year growth in revenue and about 12% growth in profits.

Seeking Alpha’s Quant Rating system maintains a cautious approach on Oracle, assigning it a Hold rating. Meanwhile, Wall Street analysts have a consensus Buy recommendation.

SA author Joseph Parrish, who rates the stock a Buy, highlights that Oracle is benefiting from the AI boom, with its stock showing robust performance, yet it still offers an attractive entry point. He notes that Oracle’s competitive edge lies in its cloud business, especially its role in training large language models, supported by complementary products.

In contrast, Investing Group leader Vladimir Dimitrov offers a more cautious perspective. He believes the market is overly optimistic in expecting continued share price gains for Oracle. Dimitrov argues that higher revenue growth is already priced into the stock, and he is skeptical that Oracle’s margins will return to their pre-Cerner acquisition levels.

• Consensus EPS Estimates: $1.33
• Consensus Revenue Estimates: $13.24B
• Earnings Insight: Oracle has exceeded EPS in 6 of the past 8 quarters, and revenue in 3 of those reports.

Also reporting: Rubrik (NYSE:RBRK), ABIVAX Société Anonyme (NASDAQ:ABVX), Mission Produce (NASDAQ:AVO), Avid Bioservices (NASDAQ:CDMO), KalVista Pharmaceuticals (NASDAQ:KALV), Limoneira Company (NASDAQ:LMNR), Calavo Growers (CVGW), Matrix Service Company (MTRX), Skillsoft (SKIL), Prenetics Global Limited (PRE), MEI Pharma (MEIP), Phoenix Motor (PEV) and more.

Tuesday, September 10

GameStop (GME)

Video game retailer GameStop (GME) is scheduled to post its earnings after the closing bell on Tuesday. Comparable store sales are expected to decline notably, falling by approximately 23% Y/Y.

GameStop’s stock has rallied nearly 50% over the past six months, fueled by a resurgence of its meme stock status earlier this year, driven by Keith Gill, also known as ‘Roaring Kitty.’ However, the stock’s volatility has diminished significantly over the summer.

Wall Street analysts are generally bearish, recommending a Strong Sell, while Seeking Alpha’s Quant Rating system gives the stock a Hold rating.

SA contributor PropNotes states that due to declining sales, persistent headwinds and an inflated valuation, they are steering clear of the stock. In an optimistic scenario, they estimate the fair value to be around $6.50 per share, which is 72% lower than the current stock price. As a result, they give GME a Strong Sell rating.

• Consensus EPS Estimates: -$0.09
• Consensus Revenue Estimates: $895.67M
• Earnings Insight: GameStop has beaten EPS estimates in 4 of the past 8 quarters, and revenue expectations in only 2 of those reports.

Also reporting: Academy Sports and Outdoors (ASO), Dave & Buster’s Entertainment (PLAY), InnovAge Holding (INNV), Petco Health and Wellness Company (WOOF), Bioceres Crop Solutions (BIOX), SelectQuote (SLQT), Cognyte Software (CGNT), Cantaloupe (CTLP), Lilium N.V. (LILM), Mama’s Creations (MAMA), Evolution Petroleum (EPM), Dynagas LNG Partners LP Common Units (DLNG) and more.

Wednesday, September 11

Designer Brands (DBI)

Designer Brands (DBI) is slated to report Q2 results before the opening bell on Wednesday, with analysts anticipating a decline in profits on slight Y/Y growth in revenue. Following a mixed Q1, the company reaffirmed its FY2024 outlook.

Seeking Alpha’s Quant Rating system has assigned a Sell rating to DBI, amid a growth rate for the company that has seen its momentum weaken relative to other consumer discretionary stocks. Meanwhile, Wall Street analysts maintain a Hold recommendation.

• Consensus EPS Estimates: $0.56
• Consensus Revenue Estimates: $816.14M
• Earnings Insight: The company has beaten EPS and revenue estimates in 4 of the past 8 quarters.

Also reporting: DouYu International Holdings (DOYU), Tsakos Energy Navigation Limited (TEN), Manchester United (MANU), Vera Bradley (VRA), MIND Technology (MIND) and more.

Thursday, September 12

Adobe (ADBE)

Adobe (ADBE) is scheduled to announce its quarterly results on Thursday after the market closes. Analysts predict approximately 10% Y/Y growth in both revenue and earnings.

Seeking Alpha’s Quant Rating system recently downgraded ADBE from Buy to Hold, just two weeks before the earnings report. However, Wall Street analysts continue to recommend the stock as a Buy.

SA Investing Group leader Danil Sereda argued that despite a recent recovery from a Q1 slump, ADBE is fully priced, assuming no major competitive disruptions in the generative AI space. Additionally, the company faces legal risks from an FTC lawsuit alleging deceptive subscription practices. Based on these factors, Sereda recommends a Hold rating for the stock.

In contrast, fellow SA Investing Group leader Julian Lin points out that the market’s initial fears about Adobe being negatively impacted by generative AI have subsided. Adobe was among the few software companies to deliver a “beat and raise” quarter, the analyst said, with generative AI proving to be a robust growth driver. Lin expects Adobe to achieve market-beating growth, supported by annual top-line expansion and a solid earnings yield.

• Consensus EPS Estimates: $4.53
• Consensus Revenue Estimates: $5.37B
• Earnings Insight: Adobe has exceeded EPS consistently in all the past 8 quarters and revenue estimates in 6 of those reports.

Also reporting: The Kroger (KR), Sibanye Stillwater Limited (SBSW), Signet Jewelers Limited (SIG), Big Lots (NYSE:BIG), Cracker Barrel Old Country Store (CBRL), Mesabi Trust (MSB), LightPath Technologies (LPTH), BEST (BEST), The Lovesac Company (LOVE) and more.

Friday, September 13

Cheetah Mobile (CMCM) is one of the very few companies to confirm an earnings report on what looks to be a quiet Friday.