BB - 3 Earnings Reports to Watch Next Week
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Welcome to the dog days of summer! After a robust slate of corporate earnings reports over the past two months, things are slowing down in the coming week, as only a few well-known companies report financial results.
However, the companies reporting the week of July 8 are still worthy of attention, especially as they include a bellwether clothing retailer, a major chemical company, and a proxy for the North American housing market. Professionals on Wall Street will be watching these reports closely for signs of how the economic reopening is proceeding and if consumer spending is heating up as much as anticipated.
Here are three companies reporting earnings the week of July 5:
Earnings Reports Next Week: WD-40 Company (WDFC)
The WD-40 Company, which reports earnings on July 7, does exactly what its name suggests. The San Diego, California-based company makes various household products, led by its eponymous chemical spray formula that protects metal from rust and corrosion and is widely used on cars and trucks. Today, the company markets its products, which also include carpet cleaners, in nearly 200 countries worldwide.
Year-to-date, WDFC stock is down a slight 3.6% at $256.02 a share. However, the stock has risen 30% in the past 12 months and reached an all-time high of $333.42 in February of this year.
The company’s share price came down after it noted in its last earnings release that it is experiencing some supply constraints that could impact future growth. The supply issue aside, the WD-40 Company reported fairly strong results, including net sales of $111.9 million, up 12% from the previous year, and net income of $17.2 million, an increase of 20% year-over-year. For its upcoming earnings, analysts expect earnings per share (EPS) of $1.15. WD-40 posted EPS of $1.06 per share during the same quarter last year, which would imply positive YOY growth of 8.5%.
Levi Strauss & Co. (LEVI)
San Francisco-based Levi Strauss & Co. is the best-known American company reporting earnings next week. The clothing manufacturer best known globally for its signature brand of blue jeans has been on a hot streak this year. LEVI stock has rallied 36% so far this year and is up 99.5% in the past year. And even with the strong bull run, Levi Strauss’ stock remains quite affordable at its current price of $27.32 a share.
Levi’s is expected to benefit from the economic reopening that’s now ramping up as consumer spending returns with a vengeance. Investors also like that Levi Strauss, which sells Dockers casual dress pants, is diversifying beyond jeans. Levi’s Chief Executive Chip Bergh has said he expects half of Levi’s revenue to come from “products that are not denim bottoms” within the next decade. Levi Strauss has also expanded its successful partnership with Target (NYSE:TGT) coming out of the pandemic, which should help drive future sales.
Levi’s second-quarter sales, which will be reported on July 8, are forecast to be 143% higher than the same period of last year when pandemic lockdown measures were imposed. Adjusted earnings for the company are expected to swing from an adjusted loss of 48 cents last year to a positive 9 cents a share. If the company’s results come in better than expected, or upgraded forward guidance is provided, LEVI stock will likely pop next week. Investors may want to buy shares before Thursday.
Earnings Reports Next Week: Richelieu Hardware (RHUHF)
Also on July 8, Richelieu Hardware, a Canadian specialty hardware distribution and manufacturing company based in Montreal, Quebec, reports its latest quarterly earnings. With two large manufacturing plants and 66 distribution centers located throughout Canada and the U.S. Richelieu Hardware is one of the biggest hardware manufacturers north of the border.
The company trades primarily on the Toronto Stock Exchange (TSX) as RCH, and that’s where the vast majority of the price movement and trading volume can be found. They also trade over the counter (OTC) as RHUHF, albeit at an extremely low volume — most days, no RHUHF stock changes hands.
RCH shares are up 21.4% YTD, opening on July 2 at 40.18 CAD ($32.49). In the past 12 months, RCH stock has gained 39% and is currently testing all-time highs. RHUHF is up 34.4% this year at $34.91 and 67% in the past 12 months.
Richelieu Hardware is benefitting from the economic reopening and also the housing boom that is currently underway in both the U.S. and Canada. For this year’s first quarter, Richelieu Hardware reported total sales of 297.6 million CAD ($240.8 million), up 19.3% from a year earlier. Sales in Canada and the U.S. increased by 23.3% and 16.4% respectively. Earnings per share came in at 38 cents CAD (31 cents) for the first quarter. Analysts are anticipating similarly strong results for the company’s second quarter results next week.
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.
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