Profit week ahead: Lennar, Autozone, FedEx, Nike and Costco Wholesale in focus

  • Monday (September 20)

  • Tuesday (September 21)

  • Wednesday (September 22)

  • Thursday (September 23)

  • Friday (September 24)

Income calendar for the week of September 20

Monday (September 20)

IN THE LOOK: LENNAR

Lennar Corp, a housing and real estate company, is expected to report earnings per share of $3.27 in its fiscal third quarter, representing more than 54% year-over-year growth, compared to $2.12 per share in same period a year ago.

The Miami, Florida-based company is expected to achieve year-over-year revenue growth of nearly 24% to approximately $7.3 billion. For four consecutive quarters, the company has exceeded expectations for earnings per share.

“Shares of Lennar have outperformed the industry so far this year. The company benefits from effective cost control and focus on making its housing platform more efficient, which in turn resulted in increased operational leverage. Higher demand for new homes, supported by falling mortgage rates and low inventory levels, bodes well. Focusing on the lighter land strategy to boost free cash flow will strengthen the balance sheet and thereby increase returns,” analysts at ZACKS Research said.

“In addition, it has provided a strong forecast for residential gross margin in the third quarter, suggesting a 420 basis points (bps) increase in the middle. It also raised its average selling price and margin forecast for fiscal year 2021, pointing to 6% growth and 400 basis points year-over-year. However, the higher land, labor and material costs are a cause for concern. This could also put pressure on the company in the coming quarters.”

VIEW OUR RESULTS CALENDAR FOR THE FULL SEPTEMBER 20 RELEASES

ticker

Business

EPS forecast

LEN

Lennar

$3.27

HRB

H&R block

-$0.34

Tuesday (September 21)

IN THE SPOTLIGHT: AUTOZONE, FEDEX

AUTOZONE: The Memphis, Tennessee-based auto parts retailer is expected to report its fiscal fourth-quarter profit of $29.71 per share, representing a year-over-year decline of about 4% from $30.93 per share. in the same period a year ago.

Autozone (AZO) is our top pick in DIY Auto. We see it as a high quality retailer with the ability to compound the profit/FCF growth over time. While we are not immune to a tougher macro background (fewer miles driven), we believe that AZO is best positioned through a recession given its leading position in the more defensive DIY segment (~80% of sales). In addition, DIFM growth accelerated pre-COVID and we think it can gain more market share in that segment in the future. In our view, continued equity gains coupled with solid cost management should enable AZO overcoming headwinds by driving less in the short to medium term. These benefits appear to be priced in at the moment.”

FEDEX: The Memphis, Tennessee-based multinational delivery service company is expected to report its fiscal first quarter earnings of $5.00 per share, representing a year-over-year growth of approximately 3%, compared to $4.87 per share in the same period a year ago. year ago.

The delivery company is said to post revenue growth of approximately 13% to $21.8 billion. Average over the last four quarters FedEx has surpassed profit estimates by more than 28%.

“The August quarter remained strong, although we are seeing some shipping delays, which we expect management to address,” said Helane Becker, equity analyst at Cowen.

“We are approaching peak shipping season and expect to see ~50K new hires to meet what will likely be record-breaking demand. Looking forward, FedEx (FDX) should finally complete the TNT integration; European operations must show that.”

VIEW OUR RESULTS CALENDAR FOR THE FULL SEPTEMBER 21 RELEASES

ticker

Business

EPS forecast

AZO

AutoZone

$29.71

FDX

FedEx

$4.94

ADBE

Adobe Systems

$3.01

KGF

Kingfisher

£12.20

CBRL

Cracker Barrel Old Country Store

$2.33

NEOG

Neogen

$0.16

Wednesday (September 22)

ticker

Business

EPS forecast

KBH

KB Home

$1.61

FULL

HB Fuller

$0.79

BBBY

Bed Bath & Beyond Inc.

$0.52

UNFIA

United Natural Foods

$0.80

GIS

General Mills

$0.89

Thursday (September 23)

IN THE SPOTLIGHT: NIKE, COSTCO WHOLESALE

NIKE: The world’s largest retailer of athletic footwear and apparel is expected to report its fiscal first quarter earnings of $1.12 per share, representing a year-over-year growth of approximately 18%, up $0.95 per share in same period a year ago.

The Beaverton, Oregon-based shoe retailer is expected to post year-over-year sales growth of more than 18% to $12.6 billion.

“Investors are focused on the impact of plant closures in Vietnam on revenue forecasts for the fiscal year. Our conservatism for analysis and management suggests minimal risk. But for a high valuation it is necessary to beat quarters and raise – stock price pullback possible and we are buyers of any weakness. Repeat overweight; increase in the price target to $221,” said Kimberly Greenberger, an equity analyst at Morgan Stanley.

Nike (NKE) is trading at the high end of its historical valuation range, and investors expect quarterly rhythms and increases in guidance. Unchanged or downgraded fiscal year outlook for temporary Vietnam-induced headwinds could lead to a stock pullback. We would be buyers on every possible weakness. ”

COSTCO WHOLESALE: The world’s fifth-largest retailer is expected to report its fiscal fourth-quarter earnings of $3.56 per share, representing a year-over-year growth of more than 1.4% from $3. 51 per share in the same period a year ago. The Fridley, Minnesota-based medical company is expected to grow revenues of about 18% to about $63 billion.

VIEW OUR RESULTS CALENDAR FOR THE FULL SEPTEMBER 23 RELEASES

ticker

Business

EPS forecast

ACN

Accenture

$2.18

DRI

Dardena Restaurants

$1.64

BY

Nike

$1.12

COST

Costco Wholesale

$3.56

MTN

Vail Resorts

-$3.46

PRGS

Progress software

$0.82

Friday (September 24)

ticker

Business

EPS forecast

CCL

Carnival

-$1.43

DICK

Carnival

– $1.45

CCL

Carnival

-£1.45

This article was originally posted on FX Empire

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