APOG - Earnings Week Ahead: FedEx KB Home Accenture CarMax and more

2023-06-16 14:00:09 ET

A holiday-shortened week leaves the list of earnings announcements rather thin. Still, a handful of high-profile names makes for a potent schedule of quarterly results.

FedEx ( NYSE: FDX ) will headline the penultimate week of June with a hotly anticipated update on cost savings programs and freight industry dynamics. Meanwhile, KB Home ( KBH ) will give another glimpse at the health of the automakers, following results from peer Lennar ( LEN ) a week earlier. CarMax ( KMX ) will offer insight into the state of auto sales, while Accenture ( ACN ) will update investors on its plan to spend on AI initiatives.

Below is a rundown of major earnings reports due in the week of June 19 to June 23.

Monday, June 19

Markets closed for the Juneteenth holiday

Tuesday, June 20

FedEx Corporation ( FDX )

FexEx ( FDX ) is due to report its fiscal fourth quarter results after the bell on Tuesday. The Memphis-based transportation company announced a sweeping reorganization of its business during an April investor event , making the Q4 print the first to come after the structural shift.

Shares of FedEx have risen over 30% since the Q3 report in mid-March. In that update, the firm raised full-year forecasts and highlighted the progress of cost cuts thus far, with the market digesting the changes at the company under new CEO Raj Subramaniam.

Analysts have applauded the shifts under his leadership thus far in 2023, with multiple upgrades solidifying a consensus Buy rating .

“Simply, we believe that management’s palpable shift in direction toward integrating its primary Express & Ground offering, its keen focus on attacking costs across various functional buckets, enhanced capital allocation scrutiny, and a more shareholder-friendly capital return program, all set the stage to drive improved shareholder returns in time,” Raymond James analyst Patrick Tyler Brown wrote.

Elsewhere, the company recently inked an agreement with pilots to hike wages .

• Consensus EPS Estimates: $4.88
• Consensus Revenue Estimates: $22.71B
• Earnings Insight: FedEx has topped EPS and revenue expectations in 50% of its reports over the past two years.

Also reporting: La-Z-Boy ( LZB )

Wednesday, June 21

KB Home ( KBH )

KB Home ( KBH ) is due to post its fiscal second quarter results prior to the market open on Wednesday. The report comes just a week after fellow homebuilder Lennar ( LEN ) beat expectations and upped its full year guidance for home deliveries, highlighting resilient demand as homebuyers deal with higher interest rates.

Despite rising rates, KB Home ( KBH ) stock has risen about 55% since the start of 2023, rebounding from about a 30% decline in 2022. While the Wall Street consensus shifted to a Buy rating in March, Seeking Alpha’s Quant team maintains a Hold rating , citing growth concerns .

• Consensus EPS Estimates: $1.31
• Consensus Revenue Estimates: $1.39B
• Earnings Insight: KB Home has beaten EPS expectations in 5 of the past 8 quarters, but has topped revenue estimates only twice in that span

Also Reporting: Winnebago Industries ( WGO ) and Steelcase ( SCS )

Thursday, June 22

Accenture ( ACN )

Accenture ( ACN ) is set to update investors on its fiscal third quarter results before the bell on Thursday. Shares of the Irish-American IT firm have risen sharply since its March earnings report, boosted by cost-cutting efforts that include a plan to lay off 19,000 employees and focus on AI investments. In mid-June, the company announced it would invest $3B in artificial intelligence over the next three years.

• Consensus EPS Estimates: $3.00
• Consensus Revenue Estimates: $16.49B
• Earnings Insight: Accenture has topped EPS estimates in 7 of the past 8 quarters, marking the same success rate for revenue reports.

Also reporting: Darden Restaurants ( DRI ), FactSet Research Systems ( FDS ), and Beyond Air ( XAIR )

Friday, June 23

CarMax ( KMX )

CarMax ( KMX ) is due to round out the week, announcing its results in the premarket period on Friday. Shares of the auto retailer have risen over 30% year to date, but remain about 50% below their late 2021 peak. The stock has been boosted thus far in 2023 by cost cuts and profit improvements, laid out by the Virginia-based auto dealer in April.

After a steady decline in late 2022 into early 2023, recent CPI data reflected a rebound in used car and truck prices, with the index rising 4.4% sequentially in both April and May . Still, used auto prices remain down 4.2% as compared to May 2022, contrasting with a 4.7% year over year increase in the new vehicle index.

• Consensus EPS Estimates: $0.80
• Consensus Revenue Estimates: $7.51B
• Earnings Insight: CarMax has beaten EPS expectations in 4 of the past 8 quarters, topping revenue estimates in 5 of those reports.

Also reporting: Apogee Enterprises ( APOG )

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