Earnings week ahead: Zscaler, DocuSign, NIO, Broadcom and more

In the first full week of September, the market is expected to see a limited number of earnings reports due to a holiday-shortened schedule. However, several highly anticipated results are on the horizon, including updates from notable companies such as NIO (NYSE:NIO), DocuSign (NASDAQ:DOCU), ChargePoint (NYSE:CHPT), C3.ai (NYSE:AI), Broadcom (NASDAQ:AVGO) and Zscaler (NASDAQ:ZS).

Additionally, earnings reports are expected from FuelCell Energy (NASDAQ:FCEL), UiPath (NYSE:PATH), Hewlett Packard Enterprise (NYSE:HPE), Hormel Foods (NYSE:HRL), Dollar Tree (NASDAQ:DLTR), DICK’S Sporting Goods (NYSE:DKS) and Hello Group (NASDAQ:MOMO).

Below is a rundown of major quarterly earnings due in the week of September 2 to September 6:

Monday, September 2

US markets will remain closed in observance of the Labor Day holiday.

Tuesday, September 3

Zscaler (ZS)

Zscaler (ZS) is set to report its quarterly results after the market closes on Tuesday. While the stock has surged approximately 37% over the past year, it has experienced a nearly 11% decline so far in 2024.

Seeking Alpha’s Quant Rating system gives Zscaler a Strong Buy rating, while Wall Street analysts rate it as a Buy.

However, there are differing views on the stock. Seeking Alpha contributor Chetan Woodun takes a bearish stance, noting that despite Zscaler’s strong product offering and progress toward profitability, the stock has declined due to increasing competition from larger players like Microsoft, a decrease in net retention rates and its association with CrowdStrike. While Zscaler has adapted its products to address evolving threat landscapes, Woodun believes now may not be the ideal time to invest.

On the other hand, fellow SA author Amrita Roy presents a more optimistic view, highlighting Zscaler’s strong earnings last time around, with revenue and earnings growth of 32% and 90%, respectively. Roy points out that the company has expanded its total addressable market (TAM) to $96B through internal product innovation and acquisitions. Zscaler is benefiting from increased customer spending and vendor consolidation. Despite potential spillover effects from CrowdStrike, Roy believes the stock remains attractively priced, even with lower growth estimates factored into the valuation model.

• Consensus EPS Estimates: $0.69
• Consensus Revenue Estimates: $567.61M
• Earnings Insight: Zscaler has consistently outperformed EPS and revenue expectations in the past 8 quarters.

Also reporting: Hello Group (MOMO), Asana (NYSE:ASAN), PagerDuty (PD), Avid Bioservices (CDMO), MEI Pharma (MEIP), HealthEquity (HQY), GitLab (GTLB) and more.

Wednesday, September 4

Hewlett Packard Enterprise (HPE)

Hewlett Packard Enterprise (HPE) is set to report its quarterly results on Wednesday after the market close, with analysts expecting a Y/Y decline in profit despite top-line growth.

Recently, the company announced a definitive agreement to acquire software company Morpheus Data for an undisclosed sum. The transaction, expected to close early in the fourth quarter of HPE’s FY2024, is aimed at expanding the company’s presence in the intelligent cloud operations market, which is projected to reach $36B by 2027.

HPE receives a Hold rating from Seeking Alpha’s Quant Rating system, contrasting with Wall Street analysts’ Buy rating.

According to SA columnist Hunter Wolf Research, HPE is well-positioned for AI-driven growth, with strong product offerings in servers, storage, networking, and the GreenLake cloud platform. AI is anticipated to be a significant growth driver for HPE.

• Consensus EPS Estimates: $0.47
• Consensus Revenue Estimates: $7.64B
• Earnings Insight: HPE has consistently exceeded EPS estimates over the past 8 quarters and revenue expectations in 50% of those reports.

Also reporting: ChargePoint Holdings (CHPT), C3.ai (AI), Hormel Foods Corporation (HRL), Dollar Tree (DLTR), Ciena Corporation (CIEN), DICK’S Sporting Goods (DKS), KNOT Offshore Partners LP Common Units (KNOP), AeroVironment (AVAV), Copart (CPRT) and more.

Thursday, September 5

NIO (NIO)

NIO (NIO) is set to release its results before the opening bell on Thursday. Analysts are predicting $2.43B in revenue for the quarter, implying over 100% Y/Y growth with a 35% reduction in losses.

Wall Street’s consensus opinion remains a Buy, while Seeking Alpha’s Quant Ratings system recently upgraded the stock to Hold from Sell.

Meanwhile, NIO recently announced an ambitious plan to expand its charging and battery swap stations across China. As part of this initiative, NIO will build a battery swap station manufacturing facility in Wuhan, targeting an annual capacity of over 1,000 stations. Starting in 2026, NIO plans to extend its coverage across the remaining provincial-level administrative divisions.

Stone Fox Capital, a SA investing group leader, emphasizes that NIO is positioned for growth with record deliveries, a new sub-brand, and innovative technology. Despite its substantial potential, NIO’s stock valuation has fallen significantly compared to its 2025 sales targets, Stone Fox Capital noted, creating an opportunity.

• Consensus EPS Estimates: -$0.33
• Consensus Revenue Estimates: $2.43B
• Earnings Insight: NIO has missed EPS estimates consistently in the past 8 quarters and revenue expectations in 50% of those quarters.

Broadcom (AVGO)

Broadcom (AVGO) is set to announce its financial figures after Wednesday’s closing bell, with analysts anticipating year-over-year revenue growth of over 47% and profit growth of nearly 14%. The California-based semiconductor company has seen its stock surge over 41% so far in 2024, fueled by the excitement surrounding AI. While analysts remain bullish on the stock, giving it a consensus Buy rating, Seeking Alpha’s Quant Rating system offers a more cautious Hold.

Seeking Alpha author Oliver Rodzianko, who has a bearish view on the stock, acknowledges that Broadcom’s stock price is benefiting from its strong AI prospects. However, he suggests that its current P/E ratio might be overvalued relative to its expected FY26 growth. Although AI-related revenues are projected to reach $10 billion in 2024, Rodzianko warns of risks from competition with big tech and a potential slowdown in AI infrastructure demand.

Conversely, SA investing group leader Victor Dergunov, who has a Buy rating on the stock, argues that Broadcom is a strong AI play with significant growth potential in the enterprise market. He acknowledges the competition and economic risks but believes Broadcom’s long-term presence in the AI market could drive substantial sales and profitability growth.

• Consensus EPS Estimates: $1.20
• Consensus Revenue Estimates: $12.96B
• Earnings Insight: Broadcom has beaten EPS and revenue estimates in 8 consecutive quarters.

Also reporting: DocuSign (DOCU), FuelCell Energy (FCEL), UiPath (PATH), Smith & Wesson Brands (SWBI), Smartsheet (SMAR), Harmony Gold Mining Company Limited (HMY), Affimed N.V. (AFMD), Guidewire Software (GWRE), Science Applications International Corporation (SAIC), The Toro Company (TTC) and more.

Friday, September 6

Big Lots (BIG)

Discount retailer Big Lots (BIG) is scheduled to release its earnings update on Friday before the market opens. The heavily shorted stock has plunged over 90% YTD, including a steep 47% drop in the month leading up to this announcement.

Seeking Alpha’s Quant Ratings system has assigned a Strong Sell rating to the stock, citing declining growth and slowing momentum compared to other Consumer Discretionary stocks. In contrast, sell-side analysts maintain a consensus Hold rating.

In the days preceding its earnings report, Big Lots disclosed that it was exploring bankruptcy options. The company is actively seeking investors to stave off bankruptcy, though no definitive plans have been finalized. Big Lots has struggled with declining sales and ongoing liquidity issues for several years.

SA contributor Yiannis Zourmpanos warned as early as July that the company risks violating loan covenants due to significant operating losses and limited capacity to take on additional debt, which could potentially lead to defaults and bankruptcy.

• Consensus EPS Estimates: -$3.48
• Consensus Revenue Estimates: $1.05B
• Earnings Insight: Big Lots has beaten EPS estimates in 4 of the past 8 quarters, exceeding revenue expectations only 3 times in that span.

Also reporting: National Beverage (FIZZ), Qudian (QD), ABM Industries (ABM), Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria (CRESY), Genesco (GCO) and more.