SMRT - Earnings week ahead: Levi Strauss Constellation Brands Conagra Brands and more

2023-03-31 14:50:18 ET

April kicks off with a sparse weekly earnings calendar, shortened further by the Good Friday holiday to close the week. The relatively quiet week offers a period of calm before earnings season begins in earnest mid-month.

That said, the calendar for the week still contains a number of reports in the consumer staples, technology and retail industries to keep an eye on. Levi Strauss ( NYSE: LEVI ), Constellation Brands ( NYSE: STZ ), Conagra Brands ( NYSE: CAG ) and Lamb Weston Holdings ( LW ) headline the week of reports, with logistics player TFI International ( TFII ) and manufacturing firm RPM International ( RPM ) adding some variation.

Below is a curated list of earnings reports due in the week of April 3-7:

Monday, April 3

Science Applications International Corp. ( SAIC )

Science Applications International Corp. ( SAIC ) is set to report its fiscal fourth-quarter earnings on April 3 before the opening bell. Shares of the Virginia-based IT company have risen more than 10% in the past year, but have edged slightly lower year to date. Ahead of the results, the company offloaded its logistics and supply chain management business through a sale to ASRC Federal for $350M cash. Also of note in the quarter, SAIC was awarded part of a $2.6B FAA contract divided amongst a number of firms.

• Consensus EPS Estimates: $1.65
• Consensus Revenue Estimates: $1.86B
• Earnings Insight: SAIC has beaten EPS estimates in eight consecutive quarters, missing revenue expectations only once in that span.

Tuesday, April 4

Acuity Brands ( AYI )

Acuity Brands ( AYI ) is set to report its fiscal second-quarter earnings before the bell on Tuesday. Shares of the Atlanta-based company tumbled more than15% in mid-March before rebounding modestly in the week ahead of the report. While Seeking Alpha’s Quant team retains a Hold rating on the stock, both sell-side analysts and Seeking Alpha authors rate the stock as a Buy.

“The company’s revenue in 2023 should benefit from strong backlog levels, higher price realization, and investments in product vitality and service levels,” Seeking Alpha author GS Analytics wrote in a recent column recommending the stock . “The margins should benefit from the higher price realization, improvement in the supply chain, and better service levels but increased commission costs is a headwind.”

• Consensus EPS Estimates: $2.73
• Consensus Revenue Estimates: $958.46M
• Earnings Insight: Acuity Brands has beaten EPS estimates in eight consecutive quarters, missing revenue expectations only once in that span.

Also reporting: Kirkland’s ( KIRK ), SMART Global Holdings ( SMRT ), and Kira Sushi ( KRUS )

Wednesday, April 5

Conagra Brands ( CAG )

Conagra Brands ( CAG ) is set to update investors on its fiscal Q3 results in premarket hours on Wednesday. Shares of the consumer-staples provider have dipped 3.7% year to date, pulling back slightly from a strong close to 2022. Deutsche Bank selected the stock as a likely sector winner in a March research report . The company also exceeded earnings expectations in the first quarter and hiked its full-year guidance .

Seeking Alpha’s Quant team raised its rating from Hold to Strong Buy on March 22.

Consensus EPS Estimates: $0.64

Consensus Revenue Estimates: $3.09B

Earnings Insight: Conagra has beaten EPS and revenue estimates in 7 of the past 8 quarters.

Also reporting: Simply Good Foods ( SMPL ) and Schnitzer Steel Industries ( SCHN )

Thursday, April 6

Levi Strauss ( LEVI )

Levi Strauss ( LEVI ) kicks off its fiscal-year reports with a Q1 update after the bell on Thursday. Shares of the San Francisco-based clothing manufacturer have risen about 16% year to date, rebounding from a notable decline in 2022. Ahead of the print, UBS warned that the company might miss analyst expectations in the upcoming report . Nonetheless, the Swiss bank’s analysts maintained a Buy rating, in line with the sell-side consensus . Analysts have cut EPS expectations eight times in the 90 days ahead of the results, but raised revenue expectations five times in that timeframe.

Still, Seeking Alpha’s Quant team has warned since late 2022 that a dividend cut could be coming . The team downgraded the stock to Hold in October 2022 .

• Consensus EPS Estimates: $0.33
• Consensus Revenue Estimates: $1.62B
• Earnings Insight: Levi Strauss has beaten EPS estimates in 8 consecutive quarters, missing revenue expectations only once in that span.

Constellation Brands ( STZ )

Corona parent Constellation Brands is due to posts its Q4 results before the bell on Thursday. Analysts have trimmed EPS and revenue estimates 16 and 14 times, respectively, in the 90 days ahead of the results. Shares of the Upstate New York-based beverage giant have edged lower in the past year. Nonetheless, Seeking Alpha’s Quant team rates the stock an “F” for valuation, balancing its strong profitability grade. The team downgraded the stock to Hold in early May 2022 .

Shortly before the results, the company outlined plans to make a push into streaming content through a new multi-year, multi-million dollar partnership with Tastemade .

• Consensus EPS Estimates: $1.84
• Consensus Revenue Estimates: $2.02B
• Earnings Insight: Constellation Brads has beaten EPS estimates in eight consecutive quarters, missing revenue expectations only once in that span.

Also reporting: TFI International ( TFII ), Lamb Weston Holdings ( LW ), and RPM International ( RPM )

Friday, April 7

Good Friday holiday, US markets are closed.

For further details see: