Well, we’ve slowed to a trickle of earnings reports as Wall Street slides into a summer lull. That doesn’t mean there aren’t still a few stocks to watch from within the earnings confessional.
Two companies within the S&P 500 Index have already reported second-quarter earnings, with one beating on the top line and another beating on the bottom line. There’s bound to be some slowdown here, as analysts have revised down their growth figures from 8.7% to 6.5% for Q2, with energy accounting for much of the growth.
While second-quarter earnings season gears up, a few companies are already into their third- and fourth-quarter reports, including the stocks listed here. The earnings growth here ranges from “meh” to astronomical, but all will important information regarding the health of their respective sectors.
Keep your eyes peeled!
Earnings Reports: Micron (MU)
Semiconductor company Micron Technology, Inc. (NASDAQ:MU) has soared of late, gaining 16% since last June, with 45% gains coming in 2017 alone — triple the rise of the Nasdaq. The company is expected to swing to profitability when it reports third-quarter earnings next week, too.
Wall Street’s consensus is for $1.50 per share, contributing to the $4.30 expected for the full year. That’s compared to an 8-cent loss for the same quarter a year ago, and a mere 6-cent profit for the full 12 months before. Just three months ago, Wall Street expected just shy of 90 cents.
Expanding earnings are coming on the back of 86% sales growth for the quarter, which will level out to around 60% for the full year. As a Mizuho Securities analyst pointed out in a recent upgrade, flash memory pricing continues to climb, widening margins.
I expect the optimism to continue before and after next week’s report, and a cool-off to come at a later date when the bar is higher and thus the growth isn’t as eye-popping.
Earnings Reports: Nike (NKE)
Nike Inc (NYSE:NKE) hasn’t had quite as hot of a run; shares are up just 3% year-to-date and are down 3% over the past 12 months. For the current quarter, Wall Street expects 50 cents per share — a penny higher than last year — on 5% sales growth.
The momentum for Nike is moving in the opposite direction as Micron, though; that estimate is 8 cents lower than the consensus three months ago.
Still, Nike has posted four straight earnings beats and is working to improve profitability. It just cut 2% of its workforce, while it’s expected to ink a deal to sell directly on Amazon.com, Inc. (NASDAQ:AMZN). The latter news especially could get investors excited about the double-digit growth expected out of Nike long-term.
Amazon is stealing the spotlight and, in many ways, building a monopoly. Nike’s willingness to finally play ball with Amazon shows management is aware of the big picture.
Earnings Reports: Walgreens (WBA)
Walgreens Boots Alliance Inc (NASDAQ:WBA) has been sliding steadily in 2017, losing 8% total so far. A lawsuit with Theranos, the controversial blood-testing company that went under, has held shares down a good bit, but Walgreens did recently settle the suit and is expected to get just under $30 million.
Meanwhile, WBA is expected to post earnings of $1.30 when it reports — 10% higher year-over-year. Little to no sales growth is on tap for the company in the near future, but 14% earnings growth long-term is still on the horizon.
That’s right in line with WBA stock’s forward price-earnings ratio, suggesting the selloff could bottom if investors sense a value. Look for more details about the settlement and clues of a turnaround in the report.
Hilary Kramer is the editor of GameChangers, Breakout Stocks, High Octane Trader, Absolute Capital Return and Value Authority. She is an accomplished investment specialist and market strategist with more than 25 years of experience in portfolio management, equity research, trading, and risk management. She has extensive expertise in global financial management, asset allocation, investment banking and private equity ventures, and is regularly sought after to provide her analysis on Bloomberg, CNBC, Fox Business Network and other media.