This upcoming week will mark the beginning of June, and several retail favorites will report their earnings results. Among the highly anticipated earnings releases are those from big tech names such as SalesForce and Crowdstrike and retailers such as GameStop, Chewy, and Lululemon.
All five of these companies have the potential to shake up the market – so we’ll delve into the expectations surrounding each of them.
Figure 1: Top 5 Most Anticipated Earnings This Week: CRM, GME, CHWY, CRWD, And LULU
Earnings Whispers
(Read more from Wall Street Memes: GameStop Stock: Is This A Perfect Setup For A Short Squeeze?)
SalesForce $ CRM – 05/31 (Post-Market)
- Consensus EPS Estimates: $ 0.94
- Consensus Revenue Estimates: $ 7.38B
The market expectation for SalesForceS (mRCC) – Get Salesforce, Inc. carry Q1 is that the company will report a 22% drop in earnings-per-share and a 23% growth in revenue, compared to the same period last year.
Bullish on SalesForce, Wedbush analyst Dan Ives says this company is part of a basket of software and cyber security tech names that are strong plays at this time. He sees the continued shift to cloud services continues within tech-heavy industries as a boon to CRM.
Bank of America Bradley Sills is another bull on SalesForce. Sills has noted sustained strength in the company’s financial services and healthcare segments.
GameStop $ GME – 06/01 (Post-Market)
- Estimated EPS Consensus: $ -1.22
- Consensus Revenue Estimates: $ 1.32B
Wall Street expects GameStop (GME) – Get GameStop Corp. Class A Report to report a steep loss as part of an overall unimpressive quarter. Reasons for investor bearishness include an unfavorable macroeconomic outlook for retailers due to high inflation and supply chain disruptions. Both these factors could undermine GameStop’s margins and inventory position.
Don’t expect financial guidance either – since Ryan Cohen rose to the post of Chair of the Board, the company has released few such projections.
Nevertheless, shareholders will probably be interested in learning anything new about GameStop’s growth initiatives. Any announcement by the company regarding NFTs, for example, could have a positive effect on investor sentiment.
Chewy $ CHWY – 06/01 (Post-Market)
- Estimated EPS Consensus: $ -0.13
- Consensus Revenue Estimates: $ 2.41B
Yet another Ryan Cohen company (Cohen cofounded Chewy) will be reporting next week. But investors aren’t too optimistic about it ChewyS (CHWY) – Get Chewy, Inc. Class A Report report either. They see rising costs resulting from inventory issues and supply chain disruptions.
For Q1, the company is expected to deliver a modest, -0.13 dollar loss per share. Regarding revenues, the consensus is that Chewy will report a 13% higher topline than it reported in the same quarter of last year.
Barclays analyst Trevor Young is skeptical about Chewy earnings and does not see it as wise to get into the game ahead of Q1 results. According to Young, Chewy has been experiencing sales growth, but an uncertain rebound in customer growth and margin expansion are concerns, especially given the company’s rich valuation.
Crowdstrike $ CRWD – 02/06 (Post-Market)
- Consensus EPS Estimates: $ 0.23
- Consensus Revenue Estimates: $ 464.26 M
CrowdstrikeS (CRWD) – Get CrowdStrike Holdings, Inc. Class A Report Q1 earnings-per-share consensus of $ 0.23 implies an impressive 132% YoY growth. Revenues, meanwhile, are expected to grow 53% compared to the same period last year.
Stephens analyst Brian Colley recently initiated coverage of Crowdstrike, giving the company a bullish rating. Colley believes the company possesses strong and widening tech moats built on a distinct architecture. He also sees Crowdstrike’s expanding product offerings as creating great upsell opportunities.
A large, untapped opportunity in the cloud market provides the final impetus for Colley’s bullish case on Crowdstrike.
Lululemon $ LULU – 06/02 (Estimated)
- Estimated EPS Consensus: $ 1.43
- Consensus Revenue Estimates: $ 1.55B
Expert consensus is that athleticwear retailer Lululemon (LULU) – Get Lululemon Athletica Inc Report will report 23% YoY earnings-per-share growth and 26% revenue growth during their Q1 results.
Last week, Morgan Stanley analyst Kimberly Greenberger upgraded her “neutral” recommendation on LULU to a “buy” recommendation. While acknowledging risks related to slowing growth and recession fears, Greenberger believes these negatives are already priced-in. She sees Lululemon as more resilient to headwinds than the general market believes and thinks the stock is trading at a decent discount right now.
(Disclaimers: this is not investment advice. The author may be long one or more stocks mentioned in this report. Also, the article may contain affiliate links. These partnerships do not influence editorial content. Thanks for supporting Wall Street Memes)
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