Earnings Week Ahead: Salesforce, Five Below, Dollar General and Cooper Companies in Focus
- Monday (November 29)
- Tuesday (November 30)
- Wednesday (December 1)
- Thursday (December 2)
- Friday (December 3)
Monday (November 29)
Tuesday (November 30)
IN THE SPOTLIGHT: SALESFORCE
The San Francisco, California-based software company Salesforce is expected to report its third-quarter 2022 earnings of $0.28 per share, which represents a year-over-year decline of over 80% from $1.74 per share seen in the same period a year ago.
“Our survey points to a strong qtr w/ 76% of partners who met/beat targets in 3Q, well above 55% in 2Q. In turn, 83% see forward qtr pipeline growth trending in-line or higher, the highest figure in 7 Qtrs. Our due diligence on gov’t was also strong w/ 3Q growth accelerating vs. 2Q. While FX could be a modest governor, we expect a solid beat & raise,” noted J. Derrick Wood, equity analyst at Cowen.
The leading provider of enterprise cloud computing solutions would post revenue growth of over 25% to $6.8 billion. In the last two quarters, the company has beaten earnings estimates at all times.
“Supporting evidence for management’s renewed commitment to drive both growth AND operating margin expansion is key to pushing the multiple higher. The potential for 30%+ FCF growth and multiple expansion makes Salesforce (CRM) our top pick in large-cap software,” noted Keith Weiss, equity analyst at Morgan Stanley.
Wednesday (December 1)
IN THE SPOTLIGHT: FIVE BELOW
The Philadelphia, Pennsylvania-based discount retailer Five Below is expected to report its fiscal third-quarter earnings of $0.29 per share, which represents a year-over-year decline of nearly 20% from $0.36 per share seen in the same period a year ago.
It is expected that this week’s results from the popular discount store retailer that sells products that cost up to $5 will also be good for investors watching the stock. Sales are expected to increase by over 15% to $562 million. Opening new stores and attracting new customers to existing locations will help the company achieve that growth.
“FIVE’s profile among pure B&M retailers is nearly unmatched (high teens top/bottom-line growth, no debt). It’s driven by a differentiated, defensible model focused on extreme value merchandise across diverse categories. FIVE is exiting the COVID-19 pandemic as a fundamentally stronger and more relevant business, with best-in-class growth characteristics, various company-specific initiatives in place, and solid liquidity,“ noted Simeon Gutman, equity analyst at Morgan Stanley.
“Valuation is below historical average on unwarranted near-term supply chain/cost concerns, which are overblown in our view. White space store growth (>50% unit runway remaining) and multi-year track record of ~20% square footage growth with >90% productivity.”
|RY||Royal Bank Of Canada||$2.23|
|AI||Arlington Asset Investment||-$0.29|
Thursday (December 2)
IN THE SPOTLIGHT: DOLLAR GENERAL, COOPER COMPANIES
DOLLAR GENERAL: The largest discount retailer in the U.S. by the number of stores is expected to report earnings per share of $2.00 in the fiscal third quarter, which represents a year-over-year decline of over 13% from $2.31 per share seen in the same period a year ago.
However, the company’s revenue would also rise about 4% to $8.5 billion. In the last two years, the company has delivered an earnings surprise most of the time.
According to ZACKS Research, in fiscal 2021, Dollar General expects net sales to increase by 0.5% to 1.5% and same-store sales to decline by 2.5-3.5%. Earnings are now projected to be between $9.60 and $10.20 per share. According to the company’s earlier predictions, fiscal 2021 net sales will be down 1% to up 1% and same-store sales will decline by 3-5%. Earnings were earlier expected to range between $9.50 and $10.20 per share.
“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.
COOPER COMPANIES: The global medical device company is expected to report earnings per share of $3.38 in the fiscal fourth quarter, which represents year-over-year growth of about 7% from $3.16 per share seen in the same period a year ago. The company’s revenue would climb nearly 10% to $748 million.
|CM||Canadian Imperial Bank Of Commerce USA||$2.81|
|ULTA||Ulta Salon Cosmetics Fragrance||$2.44|
Friday (December 3)