Earnings Week Ahead: IHS Markit, Micron, CarMax and Bed Bath & Beyond in Focus

Earnings Calendar For The Week Of September 27

Monday (September 27)

Ticker Company EPS Forecast
HRB H&R Block -$0.34

Tuesday (September 28)

IN THE SPOTLIGHT: IHS MARKIT, MICRON TECHNOLOGY

IHS MARKIT: The leading provider of data and analytics to corporate is expected to report its fiscal third-quarter earnings of $0.83 per share, which represents a year-over-year decline of about 8% from $0.77 per share seen in the same period a year ago.

The company is expected to post revenue growth of over 9% to $1.17 billion. According to ZACKS Research, in all of the company’s last four quarters, earnings surpassed the consensus estimate. Earnings surprise has averaged 5.4% over its trailing four quarters.

IHS Markit is a leading supplier of information services across multiple verticals with an attractive business model. We believe the synergy potential with SPGI will lead to cost savings and access to underpenetrated revenue markets,” noted Toni Kaplan, equity analyst at Morgan Stanley.

“Recovery in auto sales from COVID-19 is occurring faster than previously anticipated. We expect the energy market to become more accommodative in ’21 and ’22 following the crude oil price rebound.”

MICRON TECHNOLOGY: The world’s leading semiconductor manufacturer is expected to report its fiscal fourth-quarter earnings of $2.33 per share, representing year-over-year growth of more than 115% from $1.08 per share seen in the same quarter a year ago.

The semiconductor company is expected to post revenue growth of over 30% to around $8.2 billion from a year earlier.

TAKE A LOOK AT OUR EARNINGS CALENDAR FOR THE FULL RELEASES FOR THE SEPTEMBER 28

Ticker Company EPS Forecast
SMIN Smiths £39.71
INFO IHS Markit Ltd $0.83
SNX SYNNEX $2.03
THO Thor Industries $2.98
UNFI United Natural Foods $0.80
MU Micron Technology $2.33

Wednesday (September 29)

Ticker Company EPS Forecast
JBL Jabil Circuit $1.38
CTAS Cintas $2.75
WOR Worthington Industries $1.86
MLHR Herman Miller $0.54
NXT NEXT £37.38

Thursday (September 30)

IN THE SPOTLIGHT: CARMAX, BED BATH & BEYOND

CARMAX: The United States’ largest used-car retailer is expected to report its fiscal second-quarter earnings of $1.85 per share, which represents year-over-year growth of over 3% from $1.79 per share seen in the same period a year ago.

The Goochland County-based used car giant would post year-over-year revenue growth of over 28% to $7.0 billion.

BED BATH & BEYOND: The U.S.-based merchandise retailer is expected to report its fiscal second-quarter earnings of $0.52 per share, which represents year-over-year growth of around 4% from $0.50 per share seen in the same period a year ago.

The company that operates many stores in the United States, Canada, Mexico, and Australia would see a revenue decline of about 23% to around $2.5 billion.

TAKE A LOOK AT OUR EARNINGS CALENDAR FOR THE FULL RELEASES FOR THE SEPTEMBER 30

Ticker Company EPS Forecast
KMX CarMax $1.85
MKC McCormick $0.73
PAYX Paychex $0.80
BBBY Bed Bath & Beyond Inc. $0.52

Friday (October 1)

No major earnings are scheduled for release.

Bed Bath & Beyond Shares Soar Following Massive Q1 Sales

The shares of Bed Bath & Beyond are soaring today after the company reported a massive increase in sales during the first quarter of the year. The company is now one of the best-performing stocks today.

Bed Bath & Beyond Records Huge Q1 Sales

Bed Bath & Beyond Inc., a US-based chain of domestic merchandise retail stores, reported its fiscal Q1 sales a few hours ago. The company recorded a nearly 50% surge in sales during the first quarter of the year, with initiatives such as launching new brands and remodeling stores, helping it to attract more customers.

Following its jump in sales, Bed Bath & Beyond Inc. reported earnings per share of 5 cents adjusted vs. 8 cents expected. Meanwhile, the revenue was $1.95 billion vs. $1.87 billion expected. The retail company also managed to reduce its net loss to $51 million, or 48 cents per share, from a loss of $302 million, or $2.44 per share in the same period last year.

Overall, net sales for Bed Bath & Beyond surged by 49% to $1.95 billion from $1.3 billion a year earlier, surpassing the $1.87 billion estimated by analysts. Digital sales accounted for 38% of the company’s total sales as more customers continue the trend of buying online and picking up the products at a nearby Bed Bath & Beyond store.

Chief Executive Mark Tritton said, “We’re in the early stages of our transformation. Our first-quarter results prove we continue to deliver profitable growth as we reestablish our authority in home.”

Bed Bath & Beyond Shares Up By 14%

Bed Bath & Beyond’s shares are rallying at the start of the trading session this morning. At the time of this report, Bed Bath & Beyond is trading above $32.5, which represents a 9% increase from its previous day’s trading price.

BBBY stock chart. Source: FXEMPIRE

Prior to the start of today’s trading session, over 23 million shares had changed hands, which is above its 10-day average volume of 5.7 million.

Today’s Market Wrap Up and a Glimpse Into Wednesday

Stocks finished modestly higher, with all three indices closing in the green. The S&P 500 managed to set another record, the broader market index’s fourth in a row, on robust economic data, though it finished off its highs of the session. Today marks the 33rd time that the S&P 500 has reached all-time-high territory year-to-date.

Homebuilders were a bright spot after S&P Case-Shiller revealed that home prices climbed close to 15% higher in April year-over-year on the heels of a 13.3% gain in March. The home price index hasn’t been at this level in more than three decades.

Tech stocks led by Apple powered the Nasdaq to its latest all-time high. Wall Street analysts are eyeing chip stocks as beneficiaries of the introduction of the iPhone 13. Along those lines, Skyworks Solutions advanced 4.5% today. Consumers are exhibiting great confidence, with the Conference Board’s June results coming in stronger than anticipated.

The Dow Jones Industrial Average barely eked out a win, no thanks to Caterpillar, which is down 11% in the month of June alone. Otherwise, inflation worries appear to have been shelved for now. Investors, however, have plenty more data to weigh this week that might help to determine whether the bulls will remain in control.

Active Stocks

  • Virgin Galactic shed 14% on the day. Investors who are eyeing the stock ahead of Richard Branson’s company’s first commercial trip to space might consider it a buying opportunity. Virgin Galactic is proceeding with test flights this summer. Rival space travel company Blue Origin, founded by Jeff Bezos, plans to make its first flight with passengers next month, the excitement for which could spill over into Virgin Galactic.
  • Context Logic, a mobile e-commerce company that is another meme stock play, gave back some recent gains, falling 7%. The stock, which trades under the symbol WISH, is up almost 75% in the month of June in this new market paradigm.

Look Ahead

Second-quarter earnings reports will start to come out in earnest in the coming weeks. On Wednesday, meme stock Bed Bath & Beyond will take the spotlight with its fiscal Q1 earnings report prior to the opening bell. The stock is trading higher by 1% in after-hours.

The ADP employment report comes out at 8:15 a.m. ET ahead of the all-important employment report on Friday. In addition, there are a couple of Fed officials scheduled to speak on Wednesday, including Atlanta Fed President Raphael Bostic and Richmond Fed President Tom Barkin.

Stocks Gear Up for Monday After Record-Setting Performance

Stocks rallied on Friday as investor fears about inflation faded even after the Federal Reserve turned unexpectedly hawkish recently. The S&P 500’s modest gains were enough to send the index to yet another record high, reaching 4,280.70.

Financial stocks helped to catapult the broader market index higher after banks passed the Fed’s stress test with flying colors, giving them the all-clear to distribute dividends and buy back shares once again. May personal consumption expenditures, data that monetary policymakers use to gauge inflation, rose 3.4% YoY, as expected, which helped to tame inflation worries.

The S&P 500 advanced 2.7% for the week, its biggest weekly gain since early 2021. The Dow Jones Industrial Average also closed in the green, fueled by gains of more than 15% in apparel stock Nike. Meanwhile, the Nasdaq took a slight step backward after feeling pressure from higher bond yields.

In early Sunday evening, stock futures are higher across the board as investors look to keep the rally going and potentially send the S&P 500 to another new peak. This week, all eyes will be on Friday’s employment report, but there are some stocks to keep an eye on in the interim.

Stock Spotlight

Nike might have risen by a double-digit percentage on Friday, but there could be more room for this growth stock to run. Not only did Nike see its quarterly revenue about double YoY, but both the company and Wall Street expect the good times to continue.

UBS analysts said in a report that Nike has not yet reached a top, as the company continues to benefit from a shift in consumer behavior toward healthier habits as well as its own digital push. UBS has a price target of USD 185 on the stock, which closed last week at USD 154.

Other Stocks to Watch

  • GameStop muscled its way into the large-cap scene. As expected, the meme stock was added to the Russell 1000 index after qualifying once its market cap ballooned by billions of dollars YTD.
  • On the earnings front, Bed Bath & Beyond, which has attained meme stock status among retail investors, will report its quarterly earnings on Wednesday.

Look Ahead

On the economic front, there are a handful of indicators to watch out for. On Thursday, the Construction Spending report will be released for May. Also on Thursday, investors will get a read on ISM Manufacturing for June after the index beat estimates in May, climbing to a reading of 61.2.

And finally, on Friday, the employment report for June will be released after the economy added nearly 560K new jobs in May. Wells Fargo predicts that the economy added 750K non-farm payrolls in June, according to a report.