Earnings season continues with several notable names on deck to report their quarterly financials next week.
In the coming days we’ll hear from electric vehicle companies, retailers, technology giants, and a popular meme stock, to mention only a few of the highly anticipated earnings prints.
With 95% of S&P 500 companies having reported their first quarter results, 77% announced better than expected earnings, while 73% reported revenues that beat analyst expectations, according to FactSet data.
And we continue to see how some companies are being rewarded for issuing strong financial results and bullish forward guidance, while others that disappoint with their earnings and provide gloomy guidance are punished.
With the market remaining volatile and continuing to swing from gains to losses on an almost daily basis, it will be interesting to see how the following companies influence investors in the days ahead.
Here are seven stocks reporting earnings the week of May 30.
Earnings: Mullen Automotive (MULN)
Brea, California-based electric vehicle start-up Mullen Automotive (NASDAQ:MULN) saw its stock pop recently on news that the company has applied for a loan with the U.S. Department of Energy that will enable it to accelerate production of its electric cargo van. Specifically, Mullen Automotive said that it filed for an ATVM loan that will help it ramp up production of its ONE EV Cargo van program. It filed the application on April 29 and is awaiting approval from the agency.
Mullen’s ONE EV is a light commercial cargo van that the company hopes will be one of the first in its category to hit the market. However, news of the government loan application and the potential ramp-up in production hasn’t been enough to help MULN stock recover much of the 83% its share price has lost this year.
Currently, Mullen stock trades for around $1 a share. At the rate its stock has been falling, the company can’t start production of its electric delivery van soon enough. Wall Street is looking for the company to report no earnings per share and revenue of about $37 million.
Shares of cloud computing giant Salesforce (NYSE:CRM) have been in the dog house with investors throughout this year as they abandon richly valued technology securities for the safety of consumer staples and energy companies.
In the past six months, CRM stock has fallen 45%, including a 39% decline so far this year. Hurting sentiment towards the company have been several analyst downgrades of its stock in recent weeks. Swiss investment bank UBS (NYSE:UBS) is one of the latest firms to lower its outlook, giving Salesforce stock a “neutral” rating and lowering its price target to $185 a share from $225 previously.
Despite the downgrades, Salesforce has consistently beat Wall Street forecasts for its earnings on both the top and bottom lines. In March, the company reported earnings per share (EPS) of $ 84 cents, which trounced the 74 cents a share that analysts had called for. Revenue totaled $7.33 billion, up 26% from a year earlier, and better than the $7.24 billion that was anticipated.
Can the company keep its streak going when it next reports earnings on May 31? Analysts are calling for EPS of $0.94 on revenues of $7.38 billion. They’ll also be watching for any forward guidance Salesforce provides.
Earnings: ChargePoint (CHPT)
Shares of this ChargePoint (NYSE:CHPT), a manufacturer of electric vehicle charging stations, have been battered and bruised this year, down nearly 50% since the beginning of January. The Campbell, California-based company currently operates the largest network of electric vehicle charging stations in the world, announcing recently that it opened its 30,000th charging spot at a shopping mall in Chattanooga, Tennessee.
The company claims that there are now more of its EV charging stations in America than Starbucks (NYSE:SBUX) coffee shops.
ChargePoint also has the federal government in its corner. On May 2, the White House announced that it is dedicating $3 billion in infrastructure funding to finance electric vehicle manufacturing in the U.S., part of President Biden’s commitment to get half (50%) of all vehicles sold in America to run on electricity by 2030.
While the market ahead of ChargePoint is potentially huge, it is still in the development stage, which helps to account for the decline in CHPT stock. For its upcoming earnings release, analysts expect the company to report an EPS loss of -19 cents a share on revenues of $75.72 million.
The original meme stock reports its latest numbers on June 1 and analysts and investors will be watching to see if GameStop (NYSE:GME) is managing to get its fiscal house and operations in order. As is typical at this point, GME stock continues to gyrate wildly in the markets. Since mid-March, the company’s share price has swung from $78 a share up to $190, and currently trades around $130. The stock is prone to move on any news and can be expected to rise or fall sharply based on the company’s latest earnings report.
In recent days, leading into its quarterly results, GameStop launched its highly anticipated digital wallet for holding non-fungible tokens (NFTs) and cryptocurrencies. The move into the world of digital coins and tokens is part of the company’s plan to morph into a much more digitally-oriented company and diversify from its core business of selling video games at brick-and-mortar retail stores.
It remains to be seen if the digital strategy and move into crypto will pay off for GameStop. Analysts have forecast that the company will announce an EPS loss of -$1.45 on revenues of $1.32 billion.
Earnings: Broadcom (AVGO)
Broadcom (NASDAQ:AVGO) is in the news before its latest earnings due to its $61 billion acquisition bid for VMware (NYSE:VMW). If the cash-and-stock deal succeeds, VMware will enable Broadcom to expand into enterprise software. Under terms of the proposed acquisition, Each VMware shareholder will receive $142.50 in cash or 0.2520 shares of Broadcom common stock for each VMware share they hold. That represents a premium of more than 45% to VMW stock’s recent price.
While the acquisition of VMWare seems friendly, the deal still needs to run a gauntlet of shareholder and regulatory approvals before it can be finalized. In the meantime, Broadcom will continue to focus on its core business of manufacturing semiconductor and infrastructure software products.
For the first quarter of this year, analysts are expecting San Jose, California-based Broadcom to report EPS of $8.70 on revenues of $7.90 billion.
Down nearly 40% in the past six months, including a 27% pullback this year, shares of Canadian athletic apparel retailer Lululemon (NASDAQ:LULU) have not been able to escape the market’s wrath this year. However, the fall in LULU stock presents a buying opportunity, according to Morgan Stanley (NYSE:MS). The investment bank recently lifted its rating on Lululemon’s shares to “overweight” from “equal weight” with a $303.00 price target, implying a further 7% upside from the stock’s current price of $284.14.
Lululemon is under pressure to perform with its upcoming earnings given that the Vancouver, Canada-based company has delivered better-than-expected results for four consecutive quarters now. However, investors and analysts are growing concerned about supply chain issues and their potential impact on Lululemon’s numbers, especially after earnings misses and downbeat guidance from the likes of Walmart (NYSE:WMT) and Target (NYSE:TGT). For its print next week, Wall Street expects Lululemon to report EPS of $1.43 on revenues of $1.53 billion.
Earnings: CrowdStrike (CRWD)
Cybersecurity remains a hot button, top-of-mind issue, especially with the ongoing war in Ukraine. However, CrowdStrike (NASDAQ:CRWD) stock has not escaped the broad selloff in technology names. Year to date, the company’s share price is down 20%. While much of that decline can be attributed to the market downturn, valuation is also an issue for the Austin, Texas-based cybersecurity firm. CrowdStrike’s price-to-earnings (P/E) ratio is around 300 compared to an average of just 22 among stocks listed on the S&P 500 index. Additionally, CrowdStrike trades at a hefty price-to-sales (P/S) ratio of 32.
That high valuation has many investors turning away from CRWD stock as interest rates rise and the outlook for the economy becomes more uncertain. Yet the cloud-based cybersecurity company continues to grow at an aggressive rate. Between 2019 and January of this year, CrowdStrike grew its number of customers to 16,325 from 2,516, and expanded its annual revenue to $1.45 billion from $250 million.
Will the strong growth rates continue? Analysts have forecast that CrowdStrike will report EPS of $0.23 on revenues of $463.11 million when it reports its earnings on June 2.
Disclosure: On the date of publication, Joel Baglole held a long position in MS. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.