Editor’s Note: This article is regularly updated to bring you relevant, up-to-date information.
Several prominent companies are issuing earnings reports next week, including a leading software company, furniture manufacturer, grocery retailer and music streaming platform. Earnings continue to top expectations as the economy accelerates coming out of the pandemic.
While recent data shows that consumer prices rose 5% year-over-year in May, the fastest rate since August 2008, investors seem content to shrug off the inflation numbers and kick their concerns about higher interest rates down the road. On the day that the latest inflation data was released, the S&P 500 stock index, comprised of the 500 biggest U.S. companies, closed at a record high of 4,239.18. Continued strength in corporate earnings could provide the fuel needed for stocks to drive higher.
Here are seven stocks reporting earnings the week of June 14:
- Oracle (NYSE:ORCL)
- H&R Block (NYSE:HRB)
- La-Z-Boy (NYSE:LZB)
- Lennar Corp. (NYSE:LEN)
- Kroger (NYSE:KR)
- Smith & Wesson (NASDAQ:SWBI)
- LiveXLive Media (NASDAQ:LIVX)
Earnings Reports Next Week: Oracle (ORCL)
First up is computer software giant Oracle. The Austin, Texas-based company reports earnings for its fiscal fourth quarter on June 15, and Wall Street will be watching to see if the company can continue its hot streak. Oracle has reported better than expected revenue and earnings in each of the last four quarters. For its upcoming results, analysts expect Oracle to report revenue of $11.04 billion and earnings per share (EPS) of $1.33. For all of fiscal 2021, the company is forecast to report an EPS of $4.48.
Any beat will likely send ORCL stock higher. Oracle has been a bright spot in a dimming technology sector. Year-to-date the company’s share price is up nearly 28% at its open of $81.98. Can it continue climbing? Many analysts think it can, driven by its aggressive move into cloud computing storage and growing leadership position in enterprise software. Oracle’s stock is also trading at a modest price-to-earnings ratio of 19.7, and the company has nearly $36 billion of cash on hand.
H&R Block (HRB)
Income tax season just ended, so it seems appropriate to get a check on the financial health of tax preparation company H&R Block, with earnings coming on June 15. While flying somewhat under the radar, HRB stock has climbed higher this year, up 64% since the first trading day in January. And at $25.79 a share, the stock is still quite affordable. The steady increase in share price has come as H&R Block has begun winning market share again after a decade of stagnation.
H&R Block increased its total market share by 0.3 percentage points so far this year. While that might not seem like a lot, market share growth for the company is rare, and investors have responded. In addition to its tax preparation services, H&R Block is also expanding its year-round offerings for payroll and other tax services to businesses. Wave, H&R Block’s small business software platform, saw a more than 30% jump in growth last quarter as businesses begin spending again as they emerge from the Covid-19 pandemic.
Earnings Reports Next Week: La-Z-Boy (LZB)
Also on June 15, we get earnings from furniture manufacturer and recliner legend La-Z-Boy. The consensus forecast of analysts is for the Monroe, Michigan company to report revenues of $500 million, which would represent a 36% year-over-year increase, and earnings per share of 75 cents, which would be up 53% from a year ago. The positive results are due to La-Z-Boy capitalizing on the continued boom in furniture sales as people remake their homes.
The demand for its products is causing some issues for La-Z-Boy. While a special order, custom made La-Z-Boy would usually take about eight weeks to be delivered, the company is now targeting deliveries in March 2022. Supply issues aside, La-Z-Boy continues to rack up impressive sales, and that has helped lift LZB stock, which has risen 7.6% year-to-date to $42.62 a share at today’s open. If the company’s retail sales remain strong, the stock could move even higher. The median price target on the shares is currently $50, suggesting a further 17% gain.
Lennar Corp. (LEN)
How’s the U.S. housing market doing? We’ll get a good indication on June 16 when Lennar Corp., the largest home construction company in America, reports its quarterly earnings. The Miami, Florida-based company is forecast to report EPS of $2.34 for the quarter. In its last earnings report, Lennar trumped the expectations of analysts, reporting EPS of $2.04 and beating a $1.71 consensus by 33 cents. The company also announced a quarterly dividend of 25 cents a share, representing a $1.00 dividend on an annualized basis and a yield of 1.04%.
Despite the positive results and dividend, LEN stock has struggled since hitting a 52-week high of $110.61 a share in early May. Since then, the share price has fallen 17% to $91.49 at today’s open. The slump has been caused largely by fears over higher prices and lower supply, causing a cooling effect on the housing market. However, at its current level, Lennar stock looks undervalued and to be a great bargain for value investors.
The median price target of analysts is for Lennar stock to trade at $110 a share, with a high estimate of $121. The low estimate on the stock is $97, which is 5% higher than where the share price is currently at. The bottom line is that Lennar Corp.’s stock is on sale.
Earnings Reports Next Week: Kroger (KR)
We’ll also get a look at the general state of the economy when Cincinnati, Ohio-based Kroger reports earnings on June 17. As the largest supermarket chain by revenue, second-largest general retailer and fourth largest private employer in the U.S., Kroger serves as a bellwether for many aspects of the economy. And the retailer is forecast by analysts to report EPS of 99 cents for the first quarter of this year, which would be a year-over-year decline of 18.9%. Revenues are expected to be $39.22 billion, which is down 5.6% from a year ago.
The annualized decline comes after Kroger enjoyed blistering sales in the first quarter of 2020 as the onset of the global pandemic led to a spike in sales at its grocery stores. While sales have cooled from a year ago, Kroger continues to be a very good company and stock to own. In fact, the company just announced in early June that it plans to hire 10,000 workers across all aspects of its business — from warehouse workers to cashiers and pharmacists. The company had 468,000 employees at the end of 2020.
KR stock, which is a favorite of investor Warren Buffett, is up 20% year-to-date at $38.79.
Smith & Wesson (SWBI)
Norwich, Connecticut-based Smith & Wesson also reports quarterly results on June 17. The gun and ammunition manufacturer, which has been around since 1856, is expected to report EPS of $1.07, which would be a year-over-year increase of 88%. Revenues are forecast to come in at $273.5 million, up 17% from a year ago. Smith & Wesson’s sales have surged over the past year due to fears of increased regulations on long guns during last fall’s election, civil unrest due to Covid-19 and protests that occurred last summer.
And while SWBI stock has risen 19% year-to-date to $20.94, many analysts continue to feel the shares are undervalued. Bullish analysts like to point out that Smith & Wesson shares are currently priced at only 10 times projected per-share profits, making the stock look like a bargain.
While many investors are reluctant to invest in a firearms manufacturer, Smith & Wesson continues to be a very well run company. The median price target on the stock is $23, suggesting a potential 9% gain from current levels. The high estimate is $34 per share.
Earnings Reports Next Week: LiveXLive Media (LIVX)
Rounding out the earnings next week is LiveXLive Media, a Los Angeles-based music streaming platform that combines audio and live video and is available in the U.S. and Canada. LiveXLive is expected to report earnings during the week starting June 14, though a specific date has not been verified by the company. Similar to other streaming services, LiveXLive offers both a free advertisement-supported service and a paid service that removes ads. While LIVX shares sit in penny stock territory at $4.65 at today’s open, they have rallied 41% year-to-date.
LIVX stock has been buoyed by the return of concerts and music festivals this year, as well as continued growth in its user base. The share price also got a boost after the company announced that it is producing and distributing a pay-per-view boxing match this summer, suggesting that LiveXLive is keen to expand beyond music streaming and into other forms of entertainment.
LiveXLive is not yet profitable. Analysts expect the company to report a quarterly loss of 10 cents per share. Even though that’s not profit, that would still be an improvement over a loss of 15 cents per share a year earlier.
On the date of publication, Joel Baglole did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Joel Baglole has been a business journalist for 20 years. He spent five years as a staff reporter at The Wall Street Journal, and has also written for The Washington Post and Toronto Star newspapers, as well as financial websites such as The Motley Fool and Investopedia.