We’re getting to the end of the current earnings season, with 99% of companies in the S&P 500 index having already reported results for the January through March period. However, there are still some notable, market moving companies left to report.
These include a couple of technology giants, as well as a leading grocery retailer and the second largest homebuilder in the U.S. Their results could sway markets in coming days. So far, the earnings have been a mixed bag, with some companies knocking the leather off the ball and others striking out at the plate.
According to data from FactSet, 77% of companies listed in the S&P 500 have reported better-than expected earnings per share (EPS), while 73% of companies have reported revenue that was higher than anticipated. The blended earnings growth rate for the current reporting period is 9.2%, the lowest level since the final quarter of 2020.
Where will the market be when the dust settles? The next week will help clarify the picture for investors. Here are seven stocks reporting earnings the week of June 13.
The week begins with a print from Austin, Texas-based Oracle (NYSE:ORCL). The world’s third largest software company has seen its stock pulled down this year along with the rest of the technology sector.
Since January, ORCL stock has declined 20% to $70.58 a share. That’s much less than the fall seen in many less established technology companies, whose share prices are down 60% or more year to date. That said, Oracle’s stock is only slightly above its 52-week low of $66.72 per share.
Despite persistently high inflation and deteriorating macroeconomic conditions, Oracle managed to recently close its $28 billion acquisition of Cerner Corporation, a firm that specializes in healthcare software. Cerner is especially active abroad, where it manages electronic health records in the United Kingdom for the National Health Service (NHS).
The acquisition should help Oracle to both move deeper into the healthcare software space and extend its global reach. For its fiscal fourth quarter, analysts expect Oracle to report EPS of $1.37 on revenues of $11.67 billion.
How is Canada’s recreational cannabis sector holding up? Not good, based on the performance of cannabis producer Hexo Corp (NASDAQ:HEXO).
The company based in Quebec has just named its third chief executive officer (CEO) in the past six months as it struggles to reorganize its operations amid mounting losses and a collapsing share price. In its most recent financial print, Hexo reported a net loss of $690.3 million.
The company followed up that news by announcing it is closing several production facilities and laying off more than 300 staff.
The parade of bad news has continued to hurt HEXO stock, which has fallen 96% in the past 12 months to now trade at $0.27 per share. The company has been threatened with having its stock delisted by the Nasdaq exchange if it can’t get the price above $1.
Rumors of a reverse stock split designed to lift the share price above the $1 mark are swirling in the Canadian media. Analysts are not optimistic heading into next weeks earnings, forecasting that the troubled cannabis producer will report a loss of -$0.04 per share on revenue of $52 million.
Mullen Automotive (MULN)
Speaking of collapsing stocks, we’ll get an earnings snapshot from electric vehicle start-up Mullen Automotive (NASDAQ:MULN) on June 13.
And shareholders could certainly use some encouraging news. MULN stock has fallen 80% this year to now change hands at $1.22 a share. On the first trading day in January, the stock closed at $5.81 per share.
The sharp drop has been due to the fact that the company is unprofitable, spending money at a rapid rate, and has not yet entered production with any of the vehicles it is developing.
If there’s a silver lining for Mullen Automotive, it is that the company recently hired John Taylor in the role of senior vice president of global manufacturing and strategic planning. Taylor is a veteran of the automotive industry and was one of the first 50 employees hired at Tesla (NASDAQ:TSLA). He played a big role in developing Tesla’s manufacturing plant in Fremont, California. Taylor also previously worked at General Motors (NYSE:GM).
Perhaps he can turn the struggling Mullen Automotive around? For its upcoming earnings, analysts anticipate that Mullen Automotive will announce an EPS loss of $0.08 on revenues of $37.3 million.
Planet Labs (PL)
While it is likely unfamiliar to most investors, Planet Labs (NYSE:PL) is an Earth imaging company based in San Francisco that photographs our entire planet each day to monitor for climate changes and identify trends.
The images taken by Planet Labs are used by governments and private sector companies to monitor the Earth’s climate, as well as make crop yield predictions, undertake urban planning, and respond to natural disasters. It’s a niche market for sure, but one that many analysts and investors are bullish on.
Plant Labs went public through a reverse merger with a special purpose acquisition company (SPAC) last November. The timing was bad given that PL stock started trading just as the market began to fall, taking its stock down 44% and dropping the price to $5.55 from $11.40 a share.
However, there’s reason for optimism. The company, which operates the world’s largest constellation of Earth observation satellites, just secured a 10-year contract with the National Reconnaissance Office (NRO) to supply the U.S. federal government with commercial satellite imagery.
For its earnings next week, Wall Street expects Planet Labs to report an EPS loss of -$0.15 on revenues of $39.5 million.
With interest rates rising rapidly to cool off overheated consumer prices, the U.S. housing market is beginning to slowdown. And that is not good news for Lennar (NYSE:LEN), the second largest homebuilder in America.
The Mortgage Bankers Association reported on June 8 that applications for mortgages in the U.S. fell 6.5% between the first and second weeks of June as demand for mortgages hit its lowest level in 22 years.
At the same time, tight housing supply is continuing to push prices higher, with the median home price in the U.S. rising 15% in April from a year earlier. The double whammy of higher prices and higher interest rates is causing a lot of people to put off buying a home right now.
This downward trend in the housing market helps to explain why Lennar’s share price has been slumping in recent months. LEN stock is down nearly 30% this year at $79.61 a share.
The rapid cooling off of the housing market will likely show-up in the company’s first quarter earnings next week, but will probably have a bigger impact when Lennar reports results for the second quarter that covers the April through June period.
Next week, analysts are looking for Lennar to issue EPS of $3.98 on revenues of $8.16 billion.
We’ll hear from another technology giant next week when Adobe (NASDAQ:ADBE) reports its latest earnings. The San Jose, California-based company is best known for its suite of software products that include Acrobat Reader, Photoshop and Portable Document Format, better known as PDF.
Analysts are looking for Adobe to issue EPS of $3.31 on revenues of $4.34 billion. Any surprise to the upside could help to lift ADBE stock, which is down 24% year to date at $426.42 a share.
Analysts are starting to highlight how cheap Adobe stock is starting to look from a valuation standpoint, noting that it is trading for less than 28 times free cash flow. Those same analysts point to Adobe’s strong competitive moat given that its various software products are quite unique and that the company doesn’t face a great deal of direct competition.
They also continue to like the company’s subscription-based business model that sees most clients rent rather than own its products.
Next week ends with a print from grocery giant Kroger (NYSE:KR), which operates the largest supermarket chain in the U.S. by revenue.
Kroger is also the third biggest general retailer behind rivals Walmart (NYSE:WMT) and Amazon (NASDAQ:AMZN), and the company is the seventh largest private sector employer in the country with nearly half a million employees nationwide. Kroger is the rare company whose stock is actually up this year.
So far in 2022, KR stock has risen 12% compared to a 16% decline in the benchmark S&P 500 index. At its current price of $50 a share, Kroger’s stock is 30% higher than it was 12 months ago.
High inflation, particularly for the food it sells, hasn’t dented Kroger’s sales or stock. The consumer staples the company sells continue to be in high demand despite the current inflationary environment. KR stock has continued to rise even as competitors such as Walmart and Costco (NASDAQ:COST) have seen their share price fall this year.
That is likely because Kroger showed in its previous earnings report that it is managing the impacts of inflation well and that it has pricing power, or the ability to raise prices without losing customers. Can the company do it again? We’ll find out on June 16. Analysts are expecting Kroger to report EPS of $1.29 on revenues of $44.06billion.
On the date of publication, Joel Baglole held a long position in GM. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.