The 3 Things Investors Have to Know Today

The move eliminates a bit of uncertainty by maintaining the central bank leadership that investors are already familiar with, but it also eliminates the possibility of a more dovish Fed Governor Lael Brainard becoming the next Fed Chair.

Interest rate markets

The interest rate markets have reacted accordingly with odds of three interest rate hikes in 2022 now being the most popular bet. The 10-Year Treasury punched up beyond 1.60% and several of the bigger tech stocks took it on the chin as talks of higher interest rates circulate.

Higher interest rates have many inside the market thinking faster economic growth, where cyclical sectors like Financials tend to benefit. In other words, we might be seeing more “rotation” out of technology and into financials as we move towards year end.

There’s some buzz that tech stock valuations could see some compression if long-term interest rates increase, where as the financials would be a beneficiary. We can potentially see “tax-loss selling” .

Oil market

The oil market is also creating some rotation in capital as the U.S., China, Japan, India, and South Korea prepare for a coordinated release of supplies from strategic stockpiles. Not surprisingly, OPEC is not happy about this as the release of an estimated +35 million barrels from the U.S. alone could change the current supply-demand dynamics.

OPEC claims the release is unjustified and says it may need to reassess the amount of its monthly production increases. Some interpret this as a threat by OPEC to retaliate against global oil importers and not surprisingly is raising concerns about a global energy showdown that could send oil and other energy prices soaring even higher further out on the horizon. OPEC’s next production meeting is December 2.

Biden is expected to make an announcement in regard to the stockpile release today.

Data to watch today

In economic data, investors will be digesting preliminary reads from IHS Market for Manufacturing and Services PMI. Bulls are hoping to see more evidence that supply chain logjams are starting to clear after reports indicating that ports and shippers are starting to make some headway on the backlog along the West Coast. Data yesterday showed Existing Home Sales rose again in October, though total sales were down nearly -6% compared to last year.

At the same time, the median price for single-family homes rose +13.5% year-over-year to $360,800. It’s worth noting that at least part of the increase in the median sales price has been driven by a big jump in “luxury” home sales. By price category, sales of homes priced under $250,000 fell -24% year over year in October, while sales of homes priced between $750,000 and $1 million rose +25%, and sales of million-dollar plus homes were up +31%.

New Home Sales for October are due out on Wednesday followed by Pending Home Sales next Monday. On the earnings front, results are due today from American Eagle, Best Buy, Cracker Barrel, Dell, Dick’s Sporting Goods, Dollar Tree, The Gap, HP, JM Smucker, Medtronic, and Nordstrom. Tomorrow we have John Deere reporting earnings.

Earnings to Watch in Holiday-Shortened Week: Zoom, Medtronic, Best Buy, Dollar Tree and Deere in Focus

Earnings Calendar For The Week Of November 22

Monday (November 22)

IN THE SPOTLIGHT: ZOOM

The San Jose, California-based communications technology company Zoom is expected to report its fiscal third-quarter earnings of $1.09 per share, which represents year-over-year growth of over 10% from $0.99 per share seen in the same period a year ago.

The company, which provides video telephony and online chat services through a cloud-based peer-to-peer software platform, would post revenue growth of over 30% to $1.02 billion. Zoom will report 3Q FY22 earnings after market close on Monday, November 22.

“Investors lean cautious heading into FQ3 print given ongoing concerns around SMB churn, particularly as other WFH names have underperformed. View FQ4 print as having more favourable risk/reward, but given cautious positioning, could see outperformance if SMB churn is better than expected,” noted Meta Marshall, equity analyst at Morgan Stanley.

Zoom has established its position as the leader in video conferencing, now a growth market. The company has a meaningful competitive moat built on more than just architecture. Position within customers makes an attractive opportunity to expand into the broader UC market. Early wins are encouraging. Opportunities to expand the platform remain. Manageable churn post-COVID as a move to hybrid work setups.”

TAKE A LOOK AT OUR EARNINGS CALENDAR FOR THE FULL RELEASES FOR THE NOVEMBER 22

Ticker Company EPS Forecast
JKS JinkoSolar Holding Co. Ltd. ADR -$0.07
GRFS Grifolsbarcelona $0.29
JOBS 51job $4.45
GGAL Grupo Financiero Galicia $0.68
ZM Zoom Video Communications $1.09
A Agilent $1.18
KEYS Keysight Technologies $1.64
URBN Urban Outfitters $0.83
BMA Banco Macro $1.22
TLK Telekomunikasi Indns Tbk Prshn Pp Pt $0.46

Tuesday (November 23)

IN THE SPOTLIGHT: MEDTRONIC, BEST BUY, DOLLAR TREE

MEDTRONIC: The medical device company is expected to report its fiscal second-quarter earnings of $1.29 per share, which represents year-over-year growth of over 26% from $1.02 per share seen in the same period a year ago.

The company has beaten earnings per share (EPS) estimates all times in the last four quarters with a surprise of over 13%. The Fridley, Minnesota-based medical company would post revenue growth of nearly 4% to $7.9 billion.

Medtronic (MDT) commentary and guide should act as a barometer for MedTech recovery through the balance of ’21 and into ’22. More muted recovery through October could incrementally pressure 2FQ, with the path to 9% y/y FY22 growth looking increasingly challenging in the face of recent sector headwinds,” noted Cecilia Furlong, equity analyst at Morgan Stanley.

BEST BUY: The Richfield, Minnesota consumer electronics retailer is expected to report its fiscal third-quarter earnings of $1.93 per share, which represents a year-over-year decline of over 6% from $2.06 per share seen in the same period a year ago.

The consumer electronics retailer’s revenue would decline 2.5% to $11.56 billion down from $11.85 billion a year earlier. It is worth noting that in the last two years the company has delivered an earnings share price (EPS) at all times.

“Market looking for a 4-5% comp in Q3 vs cons at -1.5%. We see upside to 2H’21 numbers and expect a raised full-year guide as demand remains strong. That said, momentum is slowing and the category could shrink in ’22/’23. The stock is +15% in the last month, and a Q3 beat and raise seems priced in,” noted Simeon Gutman, equity analyst at Morgan Stanley.

DOLLAR TREE: The Chesapeake, Virginia-based company is expected to report earnings of $0.96 per share in the third quarter, down over 30% from $1.39 per share seen in the same period a year ago. But the discount variety stores that sells items for $1 or less would post revenue growth of nearly 4% to $6.4 billion.

TAKE A LOOK AT OUR EARNINGS CALENDAR FOR THE FULL RELEASES FOR THE NOVEMBER 23

Ticker Company EPS Forecast
CPG Compass Group £17.93
BYG Big Yellow £19.26
MDT Medtronic $1.29
BBY Best Buy $1.93
DLTR Dollar Tree $0.96
J Jacobs Engineering Group Inc $1.57
BURL Burlington Stores $1.24
SJM J.M. Smucker $2.04
DKS Dick’s Sporting Goods $2.03
PLAN Progressive Planet -$0.11
AEO American Eagle Outfitters $0.60
ANF Abercrombie & Fitch $0.65
DY Dycom Industries $0.75
JWN Nordstrom $0.56
NOAH Noah $2.95
VMW VMware $1.54
HPQ HP $0.88
GME GameStop -$0.51
CPB Campbell Soup $0.81
GPS Gap $0.50
SVT Severn Trent £49.79

Wednesday (November 24)

IN THE SPOTLIGHT: DEERE

Deere & Company, the world’s largest maker of farm equipment, is expected to report its fiscal fourth-quarter earnings of $3.92 per share, which represents year-over-year growth of over 64% from $2.39 per share seen in the same period a year ago.

The agricultural, construction and forestry equipment manufacturer would post revenue growth of more than 20% to $10.5 billion. It is worth noting that in the last two years the company has delivered an earnings share price (EPS) at all times.

“Despite positive secular demand fundamentals within both the Ag and Construction businesses we are lowering near-term estimates for Deere (DE) (F4Q21/F1Q22) to better reflect the impact from lost production in the US stemming from supplier bottlenecks and the labour strike,” noted Stephen Volkmann, equity analyst at Jefferies.

“We assume any lost production elongates the cycle, and we maintain our above Consensus estimates for 2023 noting additional upside from the infrastructure bill has yet to be factored into outlooks.”

TAKE A LOOK AT OUR EARNINGS CALENDAR FOR THE FULL RELEASES FOR THE NOVEMBER 24

Ticker Company EPS Forecast
UU United Utilities £25.21
JMAT Johnson Matthey £44.57
BVIC Britvic £31.37
DE Deere & Company $3.92
TCOM Trip.com Group Ltd $0.11
KC Kutcho Copper -$1.53

Thursday (November 25)

No major earnings are scheduled for release. The U.S. stock market will be closed for the Thanksgiving holiday.

Friday (November 26)

No major earnings are scheduled for release. The U.S. stock market will be closed for the Thanksgiving holiday.

Preview: What to Expect From Medtronic’s Earnings on Tuesday

Medtronic, an American-Irish medical device company, is expected to report its fiscal second-quarter earnings of $1.29 per share, which represents year-over-year growth of over 26% from $1.02 per share seen in the same period a year ago.

The company has beaten earnings per share (EPS) estimates all times in the last four quarters with a surprise of over 13%. The Fridley, Minnesota-based medical company would post revenue growth of nearly 4% to $7.9 billion.

According to ZACKS Research, as of fiscal 2021, the company expects organic revenue growth of approximately 9%. Revenues are expected to increase by $100 to $200 million in fiscal 2022.

Global revenues for fiscal 2022 are expected to be $33.29 billion, according to the Zacks Consensus Estimate. Adjusted earnings per share guidance have been raised from $5.60 to $5.75 to $5.65 to $5.75. According to Zacks, adjusted earnings are expected to be $5.68.

Medtronic Stock Price Forecast

Sixteen analysts who offered stock ratings for Medtronic in the last three months forecast the average price in 12 months of $149.73 with a high forecast of $165.00 and a low forecast of $142.00.

The average price target represents a 28.19% change from the last price of $116.81. From those 16 analysts, 15 rated “Buy”, one rated “Hold” while none rated “Sell”, according to Tipranks.

Technical analysis suggests it is good to sell as 100-day Moving Average, and 50-200-day MACD Oscillator signals a strong selling opportunity.

Morgan Stanley gave the base target price of $154 with a high of $177 under a bull scenario and $111 under the worst-case scenario. The firm gave an “Overweight” rating on the medical device company’s stock.

Several other analysts have also updated their stock outlook. BTIG raised the target price to $142 from $140. UBS lifted the target price to $149 from $145. Oppenheimer upped the price target to $150 from $147. Bernstein increased the target price to $148 from $141.

Analyst Comments

Medtronic is well aligned with our 2021 pro-recovery thesis, and we see sustainable 5%+ organic growth driven by the company’s 5% WAMGR and supported by pipeline product launches and tuck-in M&A contributions (Micra AV, EV-ICD, EPIX, RDN, Zeus/Synergy, 780G, InPen, DTM, Interstim Micro, and the soft tisssue robot),” noted Cecilia Furlong, equity analyst at Morgan Stanley.

“CEO Geoff Martha has committed to initiatives to smooth bulk purchasing and deliver more consistent results, and redeploy $450mn annual OpEx savings toward innovation & product reinvestment.”

Check out FX Empire’s earnings calendar

Medtronic Shares Hit Fresh Record High as Q1 Earnings Beat Forecasts; Target Price $142

Medtronic shares hit a fresh record high on Tuesday after the medical device company reported better-than-expected earnings in the fiscal first quarter and lifted its full-year profit guidance.

The Dublin-based company said its first-quarter GAAP net income and diluted earnings per share (EPS) were $763 million and $0.56, respectively, increases of 57% and 56%, respectively. As detailed in the financial schedules included at the end of this release, first quarter non-GAAP net income and non-GAAP diluted EPS were $1.908 billion and $1.41, respectively, increases of 128% and 127%, respectively. That was higher than the Wall Street consensus estimates of $1.32 per share.

The company reported first-quarter worldwide revenue of $7.987 billion, an increase of 23% as reported and 19% on an organic basis, which excludes the $245 million benefit of foreign currency translation. That was higher than the market expectations of $7.8 billion.

Medtronic said the first-quarter results reflect a strong recovery from the impact of the COVID-19 pandemic on elective procedures that the company experienced in 2020.

The company expect revenue growth in its fiscal year 2022 to approximate 9% on an organic basis. If current exchange rates hold, revenue growth in the fiscal year 2022 would be positively affected by approximately $100 to $200 million.

The company increased its fiscal year 2022 diluted non-GAAP EPS guidance from the prior range of $5.60 to $5.75 to the new range of $5.65 to $5.75, including an estimated 5 to 10 cent positive impact from foreign currency exchange versus a 10 to 15 cent positive impact previously.

Following the upbeat results, Medtronic shares hit a fresh record high, rising over 3% to $132.66 on Tuesday. The stocks have gained over 17% so far this year.

Executive Comments

“We’re reiterating our revenue guidance for the year while increasing the lower end of our EPS range on the back of our first-quarter results,” said Karen Parkhill, Medtronic chief financial officer.

“We remain focused on accelerating our long-term revenue growth and generating strong returns for our shareholders. In addition to growing our dividend, we are increasing our investments at the front end of major product launches, growing our R&D spend broadly across the company, and executing disciplined tuck-in acquisitions.”

Analyst Comments

Medtronic (MDT) reported F1Q revenue and EPS of $7.99B and $1.41 compared to Street targets of$7.87B and $1.32 and our estimates of $7.83B and $1.31. Organic sales growth was 19%, exceeding guidance of 17%-18%. For fiscal 2022, MDT continues to expect organic sales growth of 9%. The company raised the low end of its full-year EPS guidance range and now targets $5.65-$5.75 compared to $5.60-$5.75 previously,” noted Joshua Jennings, equity analyst at Cowen.

“For fiscal 2022, the company continues to forecast organic sales growth of 9% despite the unknowns posed by COVID-19 and specifically, the Delta variant. This target was approximately 100 bps ahead of expectations when it was set, and we were not expecting MDT to increase what is already a sufficiently high growth estimate. As such, we believe the reiteration of the full-year sales guidance is favourable and will be well-received by investors.”

Medtronic Stock Price Forecast

Sixteen analysts who offered stock ratings for Medtronic in the last three months forecast the average price in 12 months of $142.73 with a high forecast of $150.00 and a low forecast of $135.00.

The average price target represents a 7.15% change from the last price of $133.20. From those 16 analysts, 14 rated “Buy”, two rated “Hold” while none rated “Sell”, according to Tipranks.

Morgan Stanley gave the base target price of $140 with a high of $158 under a bull scenario and $104 under the worst-case scenario. The firm gave an “Overweight” rating on the medical device company’s stock.

Several other analysts have also updated their stock outlook. BTIG raised the target price to $137 from $135. Guggenheim lifted the price target to $145 from $135. Oppenheimer upped the price target to $147 from $134.

Check out FX Empire’s earnings calendar

Wall Street Week Ahead: Best Buy, Medtronic, Autodesk and Dollar General in Focus

Earnings Calendar For The Week Of August 23

Monday (August 23)

Ticker Company EPS Forecast
JD JD.com $2.69
EDU New Oriental Education Tech $0.02
RBREW Royal Unibrew A/S kr8.25
PANW Palo Alto Networks $1.43
GRUB GrubHub $0.27
MSNFY Minera Frisco ADR $0.01
TLK Telekomunikasi Indns Tbk Prshn Pp Pt $0.41
GPFOY Financiero Inbursa ADR $0.14
SUMO Sumo -$0.14
JOBS 51job $3.77
CBPO China Biologic $1.33
TV Grupo Televisa Sab $0.10

Tuesday (August 24)

IN THE SPOTLIGHT: BEST BUY, MEDTRONIC

BEST BUY: The Richfield, Minnesota consumer electronics retailer is expected to report its second-quarter earnings of $1.89 per share, which represents year-over-year growth of over 10% from $1.71 per share seen in the same period a year ago.

In the last four consecutive quarters, on average, the company has delivered an earnings surprise of over 36%. The consumer electronics retailer would post year-over-year revenue growth of over 17% to $11.6 billion. According to ZACKS Research, full-year earnings to be at $8.53 per share and revenue of $49.56 billion, rising +7.84% and +4.86% year-over-year, respectively.

Best Buy (BBY) is a best-in-class retailer led by a capable management team, and we are positive on the longer-term opportunity for the business and stock. BBY’s leading position in a healthy category and strength in key Retail fundamentals including merchandising, labour management, supply chain and omnichannel underpin our view,” noted Simeon Gutman, equity analyst at Morgan Stanley.

“We think BBY can sustain >5% EBIT margins after pulling forward its margin target by 5 years during the COVID-19 pandemic. This is reliant on generating SG&A efficiencies, which we believe are possible given BBY’s strong track record in this arena.”

MEDTRONIC: An American-Irish medical device company, is expected to report its fiscal first-quarter earnings of $1.32 per share, which represents year-over-year growth of over 112% from $0.62 per share seen in the same period a year ago.

In the last four consecutive quarters, on average, the company has delivered an earnings surprise of over 45%. The Fridley, Minnesota-based medical company would post year-over-year revenue growth of over 20% to $7.8 billion.

Medtronic is well aligned with our 2021 pro-recovery thesis, and we see sustainable 5%+ organic growth driven by the company’s ~5% WAMGR and supported by pipeline product launches & tuck-in M&A contributions (Micra AV, EV-ICD, EPIX, RDN, Zeus/Synergy, 780G, InPen, DTM, Interstim Micro, and the soft tisssue robot),” noted Cecilia Furlong, equity analyst at Morgan Stanley.

“CEO Geoff Martha has committed to initiatives to smooth bulk purchasing and deliver more consistent results and redeploy $450mn annual OpEx savings toward innovation & product reinvestment.”

TAKE A LOOK AT OUR EARNINGS CALENDAR FOR THE FULL RELEASES FOR THE AUGUST 24

Ticker Company EPS Forecast
BNS Scotiabank $1.90
BMO Bank Of Montreal USA $2.93
MDT Medtronic $1.32
BBY Best Buy $1.89
HTHT Huazhu Group Limited $1.04
INTU Intuit $1.59
HEI Heico $0.55
TOL Toll Brothers $1.49
URBN Urban Outfitters $0.78
JWN Nordstrom $0.27
VNET 21Vianet -$0.31
ACH Aluminum Of China $0.22

Wednesday (August 25)

IN THE SPOTLIGHT: AUTODESK

Autodesk, a leading provider of drafting and design software for the building, and infrastructure fields is expected to report its second-quarter earnings of $1.12 per share, which represents year-over-year growth of over 14% from $0.98 per share seen in the same period a year ago.

In the last four consecutive quarters, on average, the company has delivered an earnings surprise of over 9%. The San Rafael, California-based company would post year-over-year revenue growth of over 15% to $1.05 billion.

For the fiscal second quarter, the company expects revenues between $1.045 billion and $1.06 million. The company expects non-GAAP earnings of $1.08-$1.14 per share.

“Upside in resellers’ Q2 performance & forward expectations increases confidence ADSK is on track to hit revenue & billings growth guides in FY22, despite a back-end loaded year. Our ests are towards the high-end of guidance & forecast achieving $2.4B FY23 FCF target. Resume coverage at a price target of $334,” noted Keith Weiss, equity analyst at Morgan Stanley.

TAKE A LOOK AT OUR EARNINGS CALENDAR FOR THE FULL RELEASES FOR THE AUGUST 25

Ticker Company EPS Forecast
SYDB Sydbank A/S kr5.70
ATHM Autohome $6.32
RY Royal Bank Of Canada $2.70
DKS Dick’s Sporting Goods $2.83
KC Kutcho Copper -$1.34
ADSK Autodesk $1.12
SPLK Splunk -$0.69
NTAP NetApp $0.95
BOX BOX $0.18
CRM Salesforce.com $0.92
ULTA Ulta Salon Cosmetics Fragrance $2.50
SNOW Intrawest Resorts -$0.15
WSM Williams Sonoma $2.59
ASND Ascendant Resources -$2.23
SHI SinOPEC Shanghai Petrochemical $1.23
LFC China Life $0.40
PTR Petrochina $1.13
BAVA Bavarian Nordic As kr0.57
PLAN Progressive Planet -$0.14
SMTC Semtech $0.62
DY Dycom Industries $0.74
RAVN Raven Industries $0.20

Thursday (August 26)

IN THE SPOTLIGHT: DOLLAR GENERAL

The U.S. largest discount retailer by the number of stores Dollar General is expected to report a profit of $2.59 in the second quarter, which represents a year-over-year decline of about 17% from $3.12 per share seen in the same quarter a year ago.

The company’s revenue would also decline 1.5% to 8.56 billion. In the last four consecutive quarters, on average, the company has delivered an earnings surprise of over 9%.

“Dollar General (DG) is a best-in-class operator offering a rare combination of 1) consistent, high-quality top-and bottom-line results; 2) visible store growth; and 3) a shareholder-friendly capital allocation policy. Recent high-quality results add more confidence to the 10% L-T EPS growth algorithm, ramping top-line initiatives appear sustainable, and we see underappreciated margin upside from the rollout of Fresh self-distribution,” noted Simeon Gutman, equity analyst at Morgan Stanley.

“DG’s valuation (high teens P/E multiple) presents a solid entry point as it is in line with its history despite much stronger EPS power (and below DG’s pre-COVID multiple) while a ~5x turn discount to the market. This seems unwarranted given DG’s consistent execution & outlook.”

TAKE A LOOK AT OUR EARNINGS CALENDAR FOR THE FULL RELEASES FOR THE AUGUST 26

Ticker Company EPS Forecast
BURL Burlington Stores $1.45
HAIN Hain Celestial $0.39
CM Canadian Imperial Bank Of Commerce USA $2.72
TD Toronto-Dominion Bank $1.53
SJM J.M. Smucker $1.88
ANF Abercrombie & Fitch $0.76
DLTR Dollar Tree $1.02
SAFM Sanderson Farms $6.38
LANC Lancaster Colony $1.31
COTY Coty -$0.06
DG Dollar General $2.59
PTON Peloton Interactive, Inc. -$0.44
HPQ HP $0.84
VMW VMware $1.65
WDAY Workday $0.78
GPS Gap $0.46
MRVL Marvell Technology $0.31

Friday (August 27)

Ticker Company EPS Forecast
ZNH China Southern Airlines -$0.77
CICHY China Construction Bank Corp $0.90
SNP China Petroleum Chemical $2.42
LEGN LEG Immobilien AG -$0.31
For a look at all of today’s economic events, check out our economic calendar.

Medtronic Q1 Earnings to More Than Double; Stocks Could Hit New Highs

Medtronic, an American-Irish medical device company, is expected to report its fiscal first-quarter earnings of $1.32 per share, which represents year-over-year growth of over 112% from $0.62 per share seen in the same period a year ago.

In the last four consecutive quarters, on average, the company has delivered an earnings surprise of over 45%. The Fridley, Minnesota-based medical company would post year-over-year revenue growth of over 20% to $7.8 billion.

Medtronic shares have gained over 10% so far this year. The stocks ended 0.30% lower at $128.93 on Thursday. Tuesday’s better-than-expected results could help the stock hit new all-time highs.

Analyst Comments

Medtronic is well aligned with our 2021 pro-recovery thesis, and we see sustainable 5%+ organic growth driven by the company’s ~5% WAMGR and supported by pipeline product launches & tuck-in M&A contributions (Micra AV, EV-ICD, EPIX, RDN, Zeus/Synergy, 780G, InPen, DTM, Interstim Micro, and the soft tisssue robot),” noted Cecilia Furlong, equity analyst at Morgan Stanley.

“CEO Geoff Martha has committed to initiatives to smooth bulk purchasing and deliver more consistent results and redeploy $450mn annual OpEx savings toward innovation & product reinvestment.”

Medtronic Stock Price Forecast

Seventeen analysts who offered stock ratings for Medtronic in the last three months forecast the average price in 12 months of $142.56 with a high forecast of $150.00 and a low forecast of $135.00.

The average price target represents a 10.57% change from the last price of $128.93. From those 17 analysts, 15 rated “Buy”, two rated “Hold” while none rated “Sell”, according to Tipranks.

Morgan Stanley gave the base target price of $140 with a high of $158 under a bull scenario and $104 under the worst-case scenario. The firm gave an “Overweight” rating on the medical device company’s stock.

Several other analysts have also updated their stock outlook. BTIG raised the target price to $137 from $135. Guggenheim lifted the price target to $145 from $135. Oppenheimer upped the price target to $147 from $134.

Check out FX Empire’s earnings calendar

Earnings to Watch Next Week: AutoZone, Nvidia, Medtronic and Costco Wholesale in Focus

Earnings Calendar For The Week Of May 24

Monday (May 24)

Ticker Company EPS Forecast
NDSN Nordson $1.64

Tuesday (May 25)

IN THE SPOTLIGHT: AUTOZONE

The Memphis, Tennessee-based auto parts retailer is expected to report its fiscal third-quarter earnings of $20.02 per share, which represents year-over-year growth of about 39% from $14.39 per share seen in the same period a year ago.

The United States’ leading retailer and a leading distributor of automotive replacement parts and accessories would post revenue growth of 17% to $3.26 billion. In the last four quarters, on average, the company has beaten earnings estimates over 12%.

AutoZone (AZO) could comp ~30% in F’Q3 with a boost from the stimulus, and a flat comp is possible in F’Q4 on a tougher compare. However, these beats may not fully flow through to F’22. Risk/reward looks positive but less favorable after the stock’s recent run. Stay ‘Overweight’ with a $1,640 price target,” noted Simeon Gutman, equity analyst at Morgan Stanley.

AZO is our top pick in DIY Auto. We see it as a high-quality retailer with the ability to compound earnings/FCF growth over time. While not immune to a tougher macro backdrop (fewer miles driven), we believe AZO is best positioned through any recession given its leading exposure to the more defensive DIY segment (~80% of sales). In addition, its DIFM growth was accelerating pre-COVID and we think it can gain more share in that segment going forward. In our view, ongoing share gains coupled with solid expense management should allow AZO to overcome headwinds from less driving in the near- to medium-term.”

TAKE A LOOK AT OUR EARNINGS CALENDAR FOR THE FULL RELEASES FOR THE MAY 25

Ticker Company EPS Forecast
SHB Shaftesbury £0.64
VSAT Viasat $0.22
CBRL Cracker Barrel Old Country Store $0.27
AZO AutoZone $20.02
HTHT Huazhu Group Limited -$1.61
DY Dycom Industries $0.06
URBN Urban Outfitters $0.17
HEI Heico $0.48
TOL Toll Brothers $0.79
A Agilent $0.83
INTU Intuit $6.52
JWN Nordstrom -$0.58
VNET 21Vianet -$0.43
BYG Big Yellow £22.76

Wednesday (May 26)

IN THE SPOTLIGHT: NVIDIA

The Santa Clara, California- based multinational technology company is expected to report its first-quarter earnings of $3.28 per share, which represents year-over-year growth of over 80% from $1.80 per share seen in the same period a year ago.

In the last four consecutive quarters, on average, the company has delivered an earnings surprise of over 10%. The company, which designs graphics processing units for the gaming and professional markets, as well as system on a chip unit for the mobile computing and automotive market would post year-over-year revenue growth of over 70% to $5.4 billion.

“For the first quarter of fiscal 2022, NVIDIA anticipates revenues of $5.3 billion (+/-2%). Non-GAAP gross margin is projected at 66% (+/-50 bps). Non-GAAP operating expenses are estimated to be $1.20 billion. Capital expenditures are expected to be approximately $300-$325 million,” noted equity analysts at ZACKS Research.

TAKE A LOOK AT OUR EARNINGS CALENDAR FOR THE FULL RELEASES FOR THE MAY 26

Ticker Company EPS Forecast
VAR Varian Medical Systems $1.10
NVDA Nvidia $3.28
BMO Bank Of Montreal USA $2.17
CPRI Capri Holdings Ltd $0.01
ANF Abercrombie & Fitch -$0.41
DKS Dick’s Sporting Goods $1.16
UHAL Amerco $5.07
WDAY Workday $0.73
SNOW Intrawest Resorts -$0.16
AEO American Eagle Outfitters $0.47
DXC DXC Technology Co $0.70
LI Li Auto -$0.14
WSM Williams Sonoma $1.72

Thursday (May 27)

IN THE SPOTLIGHT: MEDTRONIC, COSTCO WHOLESALE

MEDTRONIC: An American Irish-domiciled medical device company is expected to report its fiscal fourth-quarter earnings of $1.42 per share, which represents year-over-year growth of over 140% from $0.58 per share seen in the same period a year ago.

In the last four consecutive quarters, on average, the company has delivered an earnings surprise of over 44%. The Fridley, Minnesota-based medical company would post year-over-year revenue growth of over 35% to $8.14 billion.

“Peer results and commentary suggest ~33-34% organic growth (the upper end of mgmt guidance) is achievable, and we expect FY22 guidance in-line with Cns with room for raises. We continue to see valuation as attractive and Risk/Reward positive into FY22 recovery,” noted Cecilia Furlong, equity analyst at Morgan Stanley.

Medtronic is well aligned with our 2021 pro-recovery thesis, and we see sustainable 5%+ organic growth driven by the company’s ~5% WAMGR and supported by pipeline product launches & tuck-in M&A contributions. CEO Geoff Martha has committed to initiatives to smooth bulk purchasing and deliver more consistent results, and redeploy $450mn annual OpEx savings toward innovation & product reinvestment.”

COSTCO WHOLESALE: The world’s fifth-largest retailer is expected to report its fiscal third-quarter earnings of $2.31 per share, which represents year-over-year growth of over 20% from $1.89 per share seen in the same period a year ago.

The Fridley, Minnesota-based medical company would post revenue of $43.6 billion.

COST’s results have consistently been among the best in Retail. Over the past decade, COST has delivered ~6% comps and ~10% EBIT growth on average. It is rare to find a business with COST’s solid comp/membership growth, while relative e-commerce insulation differentiates its value proposition from other retailers,” noted Simeon Gutman, equity analyst at Morgan Stanley.

“We are Overweight even as the stock trades at an elevated valuation given COST’s scarcity value, safety, and scale. In the near-term, we expect incremental sales uplifts from COVID-19 disruption, and earnings power looks stronger despite COVID-19 expenses.”

TAKE A LOOK AT OUR EARNINGS CALENDAR FOR THE FULL RELEASES FOR THE MAY 27

Ticker Company EPS Forecast
EGFEY Eurobank Ergasias S.A. ADR $0.01
SAFM Sanderson Farms $2.44
DG Dollar General $2.13
ADSK Autodesk $0.94
CM Canadian Imperial Bank Of Commerce USA $2.49
DLTR Dollar Tree $1.39
TD Toronto-Dominion Bank $1.39
RY Royal Bank Of Canada $2.06
MDT Medtronic $1.42
BBY Best Buy $1.34
BURL Burlington Stores $0.80
ULTA Ulta Salon Cosmetics Fragrance $1.93
CRM Salesforce.com $0.88
VMW VMware $1.58
HPQ HP $0.88
BOX BOX $0.17
PLAN Progressive Planet -$0.09
VEEV Veeva Systems $0.78
GPS Gap -$0.06
COST Costco Wholesale $2.31
ASND Ascendant Resources -$1.83
YY YY -$0.06

Friday (May 28)

Ticker Company EPS Forecast
BIG Big Lots $1.67
For a look at all of today’s economic events, check out our economic calendar.

Earnings to Watch Next Week: Autohome, Medtronic and Deere & Company in Focus

Earnings Calendar For The Week Of November 23

Monday (November 23)

IN THE SPOTLIGHT: AUTOHOME

Autohome, a leading online destination for automobile consumers in China, is expected to report a profit of $6.31 in the third quarter with possible revenue growth of over 6% as demand for cars recovered in the world’s second-biggest economy.

The company has reported a higher-than expected-earnings in most of the last four quarters. Autohome Inc is expected to show an increase in its third-quarter earnings to 96 cents​ per share according to the mean Refinitiv estimate from seven analysts. Wall Street expects results to range from 89 cents to ​$1.02 per share, Reuters reported.

“We forecast ATHM’s revenue to grow 6% YoY to 2.3 billion yuan in 3Q20, and beat the higher end of its 3Q20 revenue guidance of 2,240 million to 2,280 million yuan, within which we forecast: (1) its media service revenue to remain flattish YoY; (2) its lead generation revenue to grow 1% YoY; and (3) its online marketplace revenue to increase 30% YoY supported by strong data product revenue growth (i.e. we expect ATHM’s data product revenue to increase 50% YoY in 3Q20). In addition, we expect ATHM’s 3Q20 non-GAAP net margin to improve ~5ppts YoY to 37% thanks to its effective cost control and better return of 818 Global Auto Show event this year vs. last year,” said Eddy Wang, equity analyst at Morgan Stanley.

“China’s auto market has witnessed a consistent recovery in 3Q20: New car sales have seen a decent recovery with new car sales growth improving to 8% YoY in 3Q20, sustaining its recovery trend since 2Q20. We note that new car sales growth continued to increase over 9% YoY in October, which bodes well for auto sales recovery to continue in 4Q20, the traditional peak season for auto sales in China,” Wang added.

Autohome’s shares closed 1.98% higher at $101.83 on Friday; the stock is up over 1% so far this year.

TAKE A LOOK AT OUR EARNINGS CALENDAR FOR THE FULL RELEASES FOR THE NOVEMBER 23

Ticker Company EPS Forecast
KFY Korn Ferry International $0.05
PLAN Progressive Planet -$0.10
BZUN Buzzi Unicem RSP $1.17
MNTA Momenta Pharmaceuticals -$0.46
CBT Cabot $0.52
DQ Daqo New Energy $0.60
CENTA Central Garden Pet -$0.04
ARWR Arrowhead Research -$0.12
A Agilent $0.94
AMBA Ambarella $0.05
URBN Urban Outfitters $0.44
TCOM Trip.com Group Ltd $1.02
IMMU Immunomedics -$0.29
VIST Vista Oil Gas -$0.19
GPFOY Financiero Inbursa ADR $0.09
MSNFY Minera Frisco ADR $0.05
GCTAY Siemens Gamesa ADR $0.01
AEG Aegon $0.27
TLK Telekomunikasi Indns Tbk Prshn Pp Pt $0.40
WF Woori Bank $1.57

Tuesday (November 24)

IN THE SPOTLIGHT: MEDTRONIC

Medtronic, an American Irish-domiciled medical device company, is expected to report a $0.80 profit in the second quarter of the fiscal year 2021 after reporting $0.62 earnings per share in the second quarter of the fiscal year, topping the market estimate of $0.21 by $0.41.

Sell-side analysts forecast that Medtronic plc will post 3.93 earnings per share for the current year, according to American Banking and Market News.

“Peer C3Q results across cardiovascular, neuromod, surgical, and diabetes suggest up to ~5 points of F2Q upside. The Risk/ Reward for Medtronic is positive but resurgence concerns have muted the near-term upside case for “Phase 2” Large-Caps despite vaccine data,” said David R. Lewis, equity analyst at Morgan Stanley.

“Our Medtronic model currently sits at $7,125 million in total F2Q21 revenues (reflecting -8.4% organic declines) and $0.78 in EPS, roughly in-line with consensus at ~$7,064mn in revenues and $0.80 in EPS. We model ~$90 million in COVID-19 driven, incremental ventilator sales this quarter (following $150 million in both F4Q and F1Q), as demand in certain regions has likely waned but Emerging Markets remained as of F1Q EPS,” R. Lewis added.

Medtronic’s shares closed 0.75% lower at $110.16 on Friday. However, the stock is down about 3% so far this year.

TAKE A LOOK AT OUR EARNINGS CALENDAR FOR THE FULL RELEASES FOR THE NOVEMBER 24

Ticker Company EPS Forecast
CPG Compass Group -£6.52
PNN Pennon Group £29.94
SHB Shaftesbury -£1.70
WB Weibo $0.60
EV Eaton Vance $0.87
NJR New Jersey Resources $0.57
DLTR Dollar Tree $1.15
SJM J.M. Smucker $2.22
BBY Best Buy $1.64
ADI Analog Devices $1.33
HRL Hormel Foods $0.44
DKS Dick’s Sporting Goods $0.98
J Jacobs Engineering Group Inc $1.32
BURL Burlington Stores $0.16
DY Dycom Industries $1.02
CPB Campbell Soup $0.91
PDCO Patterson Companies $0.38
JWN Nordstrom -$0.05
GPS Gap $0.31
ADSK Autodesk $0.95
HPQ HP $0.52
VNET 21Vianet -$0.19
VMW VMware $1.44
AEO American Eagle Outfitters $0.32
CBPO China Biologic $1.34
JRONY Jeronimo Martins $0.45
HOCPY Hoya Corp $0.74

Wednesday (November 25)

IN THE SPOTLIGHT: DEERE & COMPANY

Deere & Company, the world’s largest makers of farm equipment, is performing excellently so far this year. Shares of the Agricultural, construction and forestry equipment manufacturer are up about 50% so far this year. The company’s earnings report next week will provide investors with an insight into 2021, where it is also expected a profit of $1.31 in the fourth quarter.

In the previous quarter, Deere & Company reported $2.57 earnings per share, topping the consensus estimate of $1.26 by $1.31. The company had revenue of $7.86 billion for the quarter, compared to the consensus estimate of $6.70 billion. However, the company’s revenue plunged 12.4% compared to the same quarter last year. Analysts expect that Deere & Company will post 7.61 EPS for the current fiscal year, according to Zolmax.

“The Zacks Consensus Estimate for Deere’s earnings per share is pegged at $1.35 for the fiscal fourth quarter, suggesting a 36.9% year-over-year plunge. The Zacks Consensus Estimate for total revenues is pinned at $7.23 billion for the period, indicating a year-over-year decline of 16.9%. The company has a trailing four-quarter average earnings surprise of 36.18%,” noted analysts at Zacks Research.

Deere & Company’s shares closed 1.16% higher at $258.56 on Friday

TAKE A LOOK AT OUR EARNINGS CALENDAR FOR THE FULL RELEASES FOR THE NOVEMBER 25

Ticker Company EPS Forecast
UU United Utilities £29.36
SMTC Semtech $0.46
PVH PVH $0.17
AUOTY AU Optronics $0.09
TRNO Terreno Realty $0.36

Thursday (November 26)

Ticker Company EPS Forecast
BVIC Britvic £19.24
ASEKY Aisin Seiki Co $0.42
SVT Severn Trent £68.16
GEBHY Genting Berhad -$0.07
RLAY Relay Therapeutics Inc. -$0.32

Friday (November 27)

No major earnings scheduled for release.