7 Earnings Reports To Watch Next Week

earnings reports - 7 Earnings Reports To Watch Next Week

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Editor’s Note: This article is regularly updated to bring you the latest information.

Over the past two weeks in particular, the most important earnings reports have seem to come from growth companies. But for both those companies and the market as a whole, they haven’t been seen as good enough.

Nio (NYSE:NIO) is down 29% since its release earlier this week, and Zoom Video Communications (NASDAQ:ZM) sold off. Additionally, cybersecurity play Okta (NASDAQ:OKTA) plunged.

That said, those misses appear to have reverberated across the market. Major indices don’t look too terrible, with the NASDAQ Composite off just 4.4% for the week. But in high-multiple names, in particular, the selling has been aggressive.

In turn, it may well continue next week. If it does, there are a few companies on the earnings docket that could struggle. Nio rival Xpeng (NYSE:XPEV) will try and arrest its own slide with a big report on Monday morning. One of 2020’s biggest initial public offerings, Poshmark (NASDAQ:POSH), will try and avoid the recent fates of Airbnb (NASDAQ:ABNB) and DoorDash (NYSE:DASH). Meanwhile, Stitch Fix (NASDAQ:SFIX), Cloudera (NYSE:CLDR) and StoneCo (NASDAQ:STNE) are among the other growth stocks on the earnings calendar.

However, there’s a bit more breadth to the docket with key reports from a number of sectors. There’s not enough here to move the entire market, but there’s certainly enough to provide a few more important tests. Thus, in a market showing some cracks, these are the seven earnings reports to watch next week:

  • MongoDB (NASDAQ:MDB)
  • Campbell Soup (NYSE:CPB)
  • AMC Entertainment (NYSE:AMC)
  • Oracle (NYSE:ORCL)
  • JD.com (NASDAQ:JD)
  • ChargePoint (NYSE:CHPT)
  • DocuSign (NASDAQ:DOCU)

Earnings Reports to Watch: MongoDB (MDB)

A close-up view of the MongoDB (MDB) office in Silicon Valley.
Source: Michael Vi / Shutterstock.com

Earnings Report Date: Tuesday, March 9, after market close

The selloff in high-multiple names has hit MDB stock, which is down 17% over the past three sessions.

That makes earnings next week a test for the space. Obviously, there’s been no news this week. Backed by an attractive end market, a useful platform, and impressive growth, MDB’s long-term story remains firmly intact. The question, as with so many of these names, is valuation.

Even with the selloff, MDB stock has better than doubled over the past year. MongoDB’s market capitalization is near $20 billion, but profitability isn’t expected until 2022 at the earliest.

In other words, MDB is precisely the kind of stock that has been hammered over the past few sessions. Even some of those names have profits and lower valuations.

If MongoDB can stem the slide in its own stock with a strong report when Okta and others couldn’t, that’s a sign that perhaps the correction is closer to the end than the beginning. But if investors keep selling this name, they’ll probably do the same to many others.

Campbell Soup (CPB)

a grocery store aisle stocked with cans and cans of Campbell's Soup
Source: HeinzTeh / Shutterstock.com

Earnings Report Date: Wednesday, March 10, before market open

On the other side of the market is Campbell Soup. CPB stock is down 12.5% over the last year. In fact, it’s modestly negative over the last six years. With the stock trading at 15 times forward earnings, investor expectations clearly remain low.

Campbell Soup is trying to fix that, by turning around its soup business and driving growth in other areas like snacks. It hasn’t quite worked yet. But the valuation suggests big upside if Campbell can deliver evidence that its strategy is bearing fruit.

Meanwhile, there’s an interesting question about the selloff in growth stocks. Where is the cash going to go? Will investors retreat to bonds, given quickly rising yields? Or will there be the long-awaited rotation from growth to value?

The latter would benefit CPB stock greatly, given a reasonable valuation and a 3.2% dividend yield. A solid Q3 report would at least position Campbell to capture some of the dollars currently invested elsewhere.

AMC Entertainment (AMC)

Image of the entrance of an AMC Entertainment (AMC) branded theater. undervalued stocks
Source: Helen89 / Shutterstock.com

Earnings Report Date: Wednesday, March 10, after market close

Fundamentally, there’s not going to be much in the way of news from AMC’s fourth-quarter report. Even with theaters reopening, the numbers are going to be ugly. Wall Street expects revenue to decline year-over-year, with the company posting another big loss.

But investors simply have to watch AMC stock next week, given its role in the “Reddit rally” that sent it, GameStop (NYSE:GME), and other stocks soaring in late January. Those traders have made some noise since, most recently with Rocket Companies (NYSE:RKT).

We’re going to see more aftershocks in the market from the GameStop drama. AMC itself has seen another rally over the past few days. Earnings could be the catalyst for WallStreetBets to flex its muscle again — or for this rally to flame out, just as the last one did.

Oracle (ORCL)

The Oracle (ORCL) sign hangs on an Oracle office in Deerfield, Illinois.
Source: Jonathan Weiss / Shutterstock.com

Earnings Report Date: Wednesday, March 10, after market close

It seems difficult for a company worth nearly $200 billion to be ignored. But it certainly seems like ORCL stock doesn’t get its fair share of attention.

Perhaps it should. Before a decline on Thursday, ORCL had touched an all-time high. It’s rallied 30% over the past year, and 73% over the past five.

And yet ORCL stock still looks cheap, at just 14 time forward earnings. Clearly investors haven’t answered the long-important question here. Is Oracle the next Microsoft (NASDAQ:MSFT), a giant that was nimble enough to adapt to a changing industry, or the next IBM (NYSE:IBM), whose decelerating growth eventually turned into outright decline?

A big quarter could go a long way toward supporting the bull case. In particular, strength in the competitive cloud space could boost the narrative here. And at this valuation, a stronger narrative almost certainly means more all-time highs ahead.

JD.com (JD)

JD.com (JD) logo displayed at the entrance to the company's Silicon Valley office.
Source: Sundry Photography / Shutterstock.com

Earnings Report Date: Thursday, March 11, before market open

From a short-term perspective, JD.com has a big Q4 report on Thursday morning. The stock is stumbling at the moment, pulling back 16% over the last couple of weeks. But that decline in turn followed a relatively sharp rally: JD still is up more than 3% year-to-date, and trades at 43 times forward earnings.

There’s room for downside if earnings disappoint at all. Competition remains stiff, with giant Alibaba (NYSE:BABA) still leading the market and upstart Pinduoduo (NASDAQ:PDD) gaining ground. A broader ‘risk-off’ sentiment has the potential to pressure every Chinese stock, given the nature of investing in that market. The chart suggests a relatively quick path back to $80 if JD drops after Thursday’s report.

Of course, there’s room for a reasonably quick recovery as well. The IPO of JD’s logistics business, which has been rumored for some time, now is officially on the way. Given JD’s opportunity and impressive growth in recent years, valuation isn’t terribly onerous.

The options market in fact is pricing in a roughly 9% move in JD stock next week. Truthfully, that might be a bit low. Even if it isn’t, earnings might well set the direction of the stock for some time to come.

ChargePoint (CHPT)

A ChargePoint electricity port in a parking lot in Irvine, California.
Source: David Tonelson / Shutterstock.com

Earnings Report Date: Thursday, March 11, after market close

ChargePoint desperately needs a strong earnings report on Thursday afternoon. Between it and Xpeng, the entire electric vehicle sector needs some help amid a broad and steep selloff.

For ChargePoint, it’s not as if Q4 numbers necessarily are going to move the needle. The company remains relatively young. The lingering effects of the novel coronavirus pandemic could hit results. The opportunity in front of the charging station developer remains enormous. A single quarter doesn’t calm the fears around the stock, nor should it necessarily accelerate the selloff.

But there’s one aspect of the report that will be crucial: the outlook for 2021. At the time of its merger with SPAC (special purpose acquisition company) Switchback Energy in September, ChargePoint projected $198 million in fiscal 2022 (ending January) revenue, up from an estimated $135 million in FY2021.

A modest miss for the FY2021 figure can be forgiven. A reduction in the outlook may not be. ChargePoint gave six years’ worth of projections along with the merger announcement, and investors bid CHPT up above $45 based in part on faith in those projections. With CHPT now below $24, and sentiment turning south quickly, a reduction in one year’s outlook will make question what comes after it.

DocuSign (DOCU)

Docusign (DOCU) logo on a phone screen with stock charts in background
Source: David Tran Photo / Shutterstock.com

Earnings Report Date: Thursday, March 11, after market close

What of the pandemic winners? As noted, Zoom struggled this week. Next week, it’s DocuSign’s turn.

Interestingly, the stock has had a rather soft run for some time. The stock spiked off March lows as investors bet the pandemic would accelerate adoption of e-signatures. But with a recent selloff, the stock now sits modestly below highs reached as far back as July. For the most part, DOCU has been rangebound for that eight-month stretch.

There’s room for a breakout if DocuSign can post a blowout quarter, and give a strong outlook for the coming year. While neither is guaranteed, both seem likely. DocuSign has a strong history of topping expectations, and the changes wrought by the pandemic should boost 2021 results.

The question, as with so many stocks in the market, is whether even good news is priced in. DOCU stock trades at nearly 200 times forward earnings and 32 times trailing 12-month revenue. Investors at the moment don’t seem terribly excited about those kinds of multiples. Can a blowout report change their mind?

On the date of publication, Vince Martin did not have (either directly or indirectly) any positions in the securities mentioned in this article.

After spending time at a retail brokerage, Vince Martin has covered the financial industry for close to a decade for InvestorPlace.com and other outlets.


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