Editor’s Note: This article is regularly updated to bring you relevant, up-to-date information.
As we barrel toward the winter holidays, earnings season is coming to a close. However, there are still a few notable, widely held stocks that are scheduled to report third quarter results next week.
These include an infamous meme stock, several major retailers, a leading technology company, and top tourism security. Taken together, they should provide investors with more information on how the economic reopening is performing heading into Christmas and the end of the year.
Here are seven stocks reporting earnings the week of December 6.
- GameStop (NYSE:GME)
- Restoration Hardware (NYSE:RH)
- Oracle (NYSE:ORCL)
- Costco Wholesale (NASDAQ:COST)
- Lululemon Athletica (NASDAQ:LULU)
- Chewy (NYSE:CHWY)
- Vail Resorts (NYSE:MTN)
According to data provider FactSet, 95% of companies listed on the benchmark S&P 500 index have reported Q3 results, with 82% announcing a positive earnings per share surprise. The blended earnings growth rate for the S&P 500 companies has been 39.6%. Those results have helped to underpin markets in the face of a new Covid-19 variant and persistent inflation.
Stocks Reporting Earnings The Week Of December 6: GameStop (GME)
The week kicks off with a bang as video game retailer GameStop, arguably the most infamous of meme stocks, announces third quarter results on Dec. 8. GME stock has had a rough ride lately, down 38% over the last six months, including a 15% decline in the past month. Still, at its current price of $175.80, shares remain up 919% year-to-date thanks to the massive spike they received in this year’s first quarter when hordes of retail investors executed a short squeeze on the stock. While the retail investing crowd seems to have moved on from GameStop, a positive earnings report could beckon many of them back to the stock.
For its part, management at the brick-and-mortar video game retailer, which continues to be one of the most heavily shorted stocks on Wall Street, continues to try and improve the company’s fortunes. However, GameStop continues to experience setbacks in its plan to move online and become more of an ecommerce retailer.
The latest setback came with the announcement that the company’s Chief Operating Officer, Jenna Owens, left the company seven months after assuming her leadership role. GameStop Chairman Ryan Cohen had hired Owens from Amazon as part of his quest to turn GameStop into the “Amazon of gaming.”
Wall Street expects the still unprofitable GameStop to report a Q3 earnings per share (EPS) loss of -$0.52 on revenues of $1.19 billion.
Restoration Hardware (RH)
Luxury furniture retailer Restoration Hardware also reports financials on Dec. 8, and analysts are calling for the Corte Madera, California-based company to announce EPS of $6.64 on revenue of $985.18 million. Any beat to the upside could give a much needed lift to the retailer’s stock, which has slumped 15% in the last month and now trades at $559.09 per share.
The decline in RH stock has come despite the lead-up to the busy holiday sales period, but comes after a big run in this year’s first half. Despite the 15% pullback in November, Restoration Hardware’s shares are still up 26% for the year.
Despite the lingering pandemic, RH continues to expand internationally, especially in Europe where its luxury furniture has proven to be popular. New Restoration Hardware galleries are scheduled to open in the United Kingdom and France early next year (2022). The company has forecast that it can generate $20 billion in new revenue from its international growth.
Domestically, RH has earned $3.5 billion in revenue over the last 12 months. And the company’s margins continue to be the envy of the retail industry with a net profit margin of 15%.
Analysts will be watching next week’s results for signs that the global supply chain crunch is impacting Restoration Hardware’s business.
Santa Clara, California-based Oracle remains the world’s largest database management company and a leader in cloud computing. The company reports earnings on Dec. 9 and the Street will be watching to see if Oracle’s growth has kept pace in this year’s second half.
As a provider of essential data storage to large companies, Oracle is viewed as a recession-proof company. It’s stock tends to perform well in good economic times and bad. Year-to-date, ORCL shares are up 42% at $90.64, including a 13% gain since the start of summer. Analysts have forecast that Oracle will report EPS of $1.11 on revenue of $10.21 billion for Q3.
Oracle’s growth this year has been powered by strong demand for its new “Fusion” and “NetSuite ERP” services that are replacing the company’s legacy on-premise data storage business, moving it to the cloud. The company also has an aggressive share buyback program.
Over the past year, Oracle has spent all of its free cash flow buying back its own stock, which has also helped to lift the share price. The company’s dividend ratio is currently 24%, but management has stated that there is more room to grow when it comes to quarterly dividend payouts. That’s music to investors’ ears.
Costco Wholesale (COST)
Another major retailer reporting Q3 results on Dec. 9 is Seattle-headquartered Costco. The leading warehouse club and grocery retailer serves as a bellwether for consumer spending and its financial reports are always scrutinized by Wall Street.
For the third quarter, analysts expect Costco to announce EPS of $2.61 on revenues $49.14 billion. The company, and its stock, have been outperforming throughout the pandemic as consumers continue to rely on Costco for groceries and other essential items.
So far in 2021, COST stock is up 40% at $530.57 a share. Given the lofty share price, some analysts and investors are calling for Costco to split its stock.
While it remains to be seen if Costco will actually do so, what is clear is that the company that now has more than 800 stores and nearly 275,000 employees worldwide is growing its online business to complement its in-person shopping experience.
In the nine weeks ended Oct. 31, Costco reported that its ecommerce revenue increased 12.1% and comparable sales were up 10.4% from a year earlier as the company makes more of its goods available for people to purchase online via its website.
The pandemic has only accelerated the expansion of Costco’s online shopping strategy, and it will be interesting to see next week how it impacts the company’s Q3 financials.
Lululemon Athletica (LULU)
Also on Dec. 9, Canadian athletic apparel retailer Lululemon reports its latest quarterly numbers. Like Costco, Lululemon has thrived throughout the pandemic as its casual workout clothes have proven extremely popular with people working and sheltering in place at home.
As we close out 2021, LULU stock is up 25% on the year at $446.32 per share. Since the pandemic began in March 2020, the company’s share price has risen 170% and is now up more than 700% over the past five years. And while Lululemon’s core athletic wear continues to drive sales, the company’s expansion into men’s casual wear also appears to be succeeding.
Lululemon has also been expanding through acquisitions. In June 2020 , the company announced that it was acquiring at-home fitness company Mirror for $500 million. Lululemon had already invested in Mirror, and there are synergies to be achieved as Mirror’s exercise users are Lululemon’s ideal athletic apparel clients.
Some of Lululemon’s brand ambassadors are fitness instructors on Mirror’s exercise platform. The company has already stated that the Mirror acquisition has “exceeded expectations.” When Lululemon reports earnings next week, analysts anticipate EPS of $1.41 on revenues of $1.44 billion.
It’s been a brutal year for shareholders of online pet retailer Chewy. The Dania Beach, Florida-based company’s current share price of $64.77 is about half its 52-week high of $120.00 reached in February.
Year-to-date, CHWY stock is down 27%. And its slide has been persistent since the spring. The decline comes after the stock rose 300% in 2020 as the pandemic pushed pet owners online to buy food, treats and other items for their beloved dogs, cats and other animals.
This year, Chewy has gotten caught in the perception that it was a pandemic play and investors have soured on the company’s online business model amid the economic reopening and return to in-person shopping.
Chewy has been responding to the negative investor sentiment by expanding into new areas in an effort to prove that it is more than an ecommerce company. Chewy has moved into new areas such as pet insurance products and launched a marketplace to help connect pet owners with veterinarians.
So far, investors do not appear to be impressed with Chewy’s expansion and the growth has not been reflected in CHWY stock. However, some market observers are cautiously optimistic that Chewy’s share price found a bottom in mid-October when it fell to just over $60 a share.
Next week, analysts expect the pet retailer to report an EPS loss of -$0.04 on revenues of $2.21 billion.
Vail Resorts (MTN)
Vail Resorts is a mountain resort company that owns marquee ski and golf locations around the world, including its namesake Vail Ski Resort in Vail, Colorado, the Stowe Mountain Resort in Vermont and Whistler Blackcomb in British Columbia, Canada.
MTN stock struggled during the depths of the pandemic as most of its vacation properties were forced to close or had capacity restrictions imposed on them. However, the share price has turned around this year as lockdown measures have eased and the company has said it is looking forward to a profitable ski season this winter.
Year-to-date, MTN stock is up 25% at $335.44 a share. Much of that gain occurred in the summer when Vail Resorts numerous golf courses were operating at full capacity. Investors will be hoping that the company’s third quarter results point towards a successful ski season as well.
The company has continued to offer discounts and deals in an effort to attract vacationers to its resorts, which stretch as far away as Australia, in an effort to boost capacity and sales. For the third quarter of this year, analyst are forecasting that Vail Resorts will report an EPS loss of -$3.63 on revenues of $196.82 million.
Disclosure: 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.