BB:CC - Earnings week ahead: Micron Lululemon Carnival RH and more

2023-03-24 13:48:26 ET

The pace of earnings releases has slowed to a thin trickle as March heads towards its close. Still, a number of closely watched results are due out next week. These will cover notable players in the pharmaceutical, technology and retail industries, providing key insights on the state of the economy from a number of vantage points.

Early in the week, Carnival Corp. ( NYSE: CCL ) and Lululemon Athletica ( NASDAQ: LULU ) will offer a view of consumer attitudes. Results from CCL will provide clues as to the appetite for post-pandemic travel spending. Meanwhile, LULU will deliver a look at the durability of athleisure after COVID as well.

Among the other high-profile reports, Pfizer’s ( PFE ) German vaccine partner BioNTech ( BNTX ) and semiconductor stalwart Micron Technology ( NASDAQ: MU ) will issue results as well. Elsewhere, Cal-Maine Foods ( CALM ), nation’s largest egg producer, will provide some color on the state of egg production amid a focus on prices and as the impacts from an avian flu culling of hen stocks begin to subside.

Looking at some of the other names, RH ( RH ) will be a closely watched call given its executives penchant for unfiltered commentary, while EVgo ( EVGO ), Canoo ( GOEV ) and Li-Cyce Holdings ( LICY ) will also provide financial figures to keep an eye on.

Below is a curated list of earnings reports due in the week of March 27 through March 31:

Monday, March 27

Carnival Corp. ( CCL )

Carnival ( CCL ) is expected to post its fiscal first quarter results before the bell on Monday. The cruise operator has seen its stock slump about 50% in the past year even after a mild rebound as of late, leaving the stock near levels marked in the immediate wake of the COVID outbreak.

The consensus analyst rating on the stock remains a Hold , although multiple experts have hiked their outlook ahead of earnings. For example, Deutsche initiated a Catalyst Call outperform on the name, anticipating a post-earnings rally. Analysts at Hedgeye, Citi , and Wells Fargo advised that a reopening for China and negative sentiment in the space could amplify upside.

“Sentiment is decidedly more negative for CCL based on legacy overhang, short interest, fewer buy ratings and conversations with clients,” the Hedgeye analysts wrote . “However, pricing is improving sequentially and tracking well above estimates while significant onboard spend appears to be sustaining for CCL here in 2023.”

• Consensus EPS Estimates: $-0.60
• Consensus Revenue Estimates: $4.30B
• Earnings Insight: Carnival has missed revenue expectations in 8 consecutive quarters, exceeding EPS estimates just once.

Also reporting: BioNTech SE ( BNTX ), PVH Corp. ( PVH ), and Volta ( VLTA )

Tuesday, March 28

Micron Technology ( MU )

Micron ( MU ) is due to unveil its fiscal second quarter earnings results after the closing bell on Tuesday. Analysts have revised EPS and revenue expectations downward 18 and 16 times in the 90 days ahead of results. Analysts at both Cleveland Research and Citi noted that pricing weakness may hang over results.

Nonetheless, shares of Micron have risen over 20% since the start of 2023. The consensus analyst rating remains a Buy , although Seeking Alpha’s Quant Ratings system retains a Hold given growth concerns .

• Consensus EPS Estimates: $-0.80
• Consensus Revenue Estimates: $3.72B
• Earnings Insight: Micron has beaten EPS estimates in 7 of the past 8 quarters, missing revenue expectations thrice in that timeframe.

Lululemon Athletica ( LULU )

Canadian athleisure maker Lululemon ( LULU ) is due to announce its Q4 earnings results after the closing bell on Tuesday. Shares have slipped since the start of 2023 as analysts have voiced wariness on margins and growth for the year ahead. For example, Jefferies indicated the upcoming earnings results could disappoint . Meanwhile, Bernstein cut its rating to Sell in January amid higher promotions and declining demand .

On the other hand, Wells Fargo and Citi argued the stock is offering an attractive entry point prior to the results. Further, Raymond James defended the stock earlier in the year despite lackluster margin forecasts . The consensus analyst rating remains a Buy . However, the Seeking Alpha Quant Ratings system currently rates the stock a Hold amid a somewhat stretched valuation.

• Consensus EPS Estimates: $4.26
• Consensus Revenue Estimates: $2.70B
• Earnings Insight: Lululemon has exceeded EPS estimates in 8 consecutive quarters, rising above revenue expectations in 7 of those reports.

Also reporting: McCormick & Company ( MKC ), Cal-Maine Foods ( CALM ), and Walgreens Boots Alliance ( WBA )

Wednesday, March 29

RH ( RH )

Luxury home furnishings company RH ( RH ) is set to reveal its earnings results in post-market hours on Wednesday. The company updated its 2022 expectations in February due to the remediation of some accounting errors . The company exceeded earnings expectations in its December call, but noted continued inflationary impacts akin to the late 1970s affecting consumer behavior. The stock was downgraded by both Jefferies and Goldman Sachs in the weeks leading up to the results.

“We are downgrading RH to Sell from Neutral on our view that sales will likely remain pressured, given purchases are discretionary and larger ticket, the likely pull-forward of demand and highly promotional environment,” Goldman’s analysts explained .

• Consensus EPS Estimates: $3.36
• Consensus Revenue Estimates: $777.30M
• Earnings Insight: RH has exceeded EPS estimates in 8 consecutive quarters, missing revenue expectations just once in that span.

Also reporting: UniFirst Corporation ( UNF ), Paychex Corporation ( PAYX ), HB Fuller ( FUL ), and Sprinklr ( CXM )

Thursday, March 30

Canoo Inc. ( GOEV )

Canoo ( GOEV ) is set to disclose its fiscal fourth quarter results after the closing bell on Thursday. Analysts expect substantial revenue growth from $2M in 2022 to $306M by the close of 2023, as the company dramatically ramps up production. However, the path toward that rapid expansion has become expensive, necessitating multiple capital raises as of late . Shares have slumped over 90% in the past year.

Management expects a newly acquired facility in Oklahoma City to reach a 20K unit annual run rate by the end of 2023 with production due to begin by mid-year. Customers are due to receive deliveries by the end of the year, according to CEO Tony Aquila .

Also reporting: Rumble ( RUM ), Li-Cycle Holdings ( LICY ), EVgo ( EVGO ), BlackBerry Limited ( BB ), and Neogen Corporation ( NEOG )

Friday, March 31

Advent Technologies ( ADN ), Uxin Limited ( UXIN ), and Consolidated Water Co. ( CWCO ) populate a particularly sparse earnings slate on Friday.

For further details see: