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Earnings season remains relatively slow as we wait for a rush of third quarter results.
For the upcoming week of Sept. 27, we’ll get earnings from a handful of notable companies that are involved in a cross-section of U.S. economic sectors — technology, automotive and retail.
While they might not move markets, these companies’ earnings will still be watched closely on Wall Street and among shareholders who will be hoping for the stock prices to get a pop after the latest numbers are announced.
Here are five stocks reporting earnings over the coming week.
- Aurora Cannabis (NASDAQ:ACB)
- Micron Technology (NASDAQ:MU)
- CarMax (NYSE:KMX)
- Bed Bath & Beyond (NASDAQ:BBBY)
- Paychex (NASDAQ:PAYX)
Earnings Reports Next Week: Aurora Cannabis (ACB)
Source: Jarretera / Shutterstock.comFirst up next week is Aurora Cannabis, one of Canada’s leading recreational cannabis producers. The company is generating headlines in its native country after it pushed back its earnings release by a week and then subsequently announced that it is closing its main manufacturing facility in Edmonton, Alberta where it is based, a decision that will impact 8% of Aurora Cannabis’ global workforce.
The closure of the 2,787 square meter production facility is being done to help streamline operations and should save Aurora Cannabis $50 million.
However, pushing back its earnings announcement, closing a key facility and laying off staff does not set the stage for strong quarterly results. A pullback in ACB stock could be coming should the company’s latest numbers disappoint.
Year-to-date, the Aurora’s share price has fallen 28% and, at $6.03 per share, is barely keeping its head above the $5 penny stock threshold. Analysts expect Aurora Cannabis to report revenue of $56.28 million and an earnings per share (EPS) loss of -$0.27 for its latest quarter. Canada’s cannabis sector continues to undergo a good deal of rationing and consolidation.
Micron Technology (MU)
Source: Sundry Photography / Shutterstock.comOn Sept. 28 we’ll hear from computer data storage company Micron Technology. The Boise, Idaho-based company’s stock has struggled throughout the year and currently sits a loss of 1.29% over the past nine months to $74.21 per share. In the past six months, MU stock has fallen 13%.
The stock has slumped following a series of analyst downgrades and questions about the future market for data storage. Could a strong earnings report give Micron Technology a much needed boost? Shareholders will be hoping so.
MU Stock has struggled even though the company reported annualized revenue growth of 36% last quarter to $7.4 billion. At current valuations, Micron Technology stock looks quite cheap, trading at just 20 times trailing earnings, lower than the average S&P 500 multiple of 31.
Some observers now expect a rebound in this beaten down stock. Wall Street is looking for the company to report revenues of $8.22 billion and EPS of $2.33. Anything better than that and the share price could pop.
Earnings Reports Next Week: CarMax (KMX)
Source: Jonathan Weiss / Shutterstock.comWe’ll get a snapshot of how automotive sales are holding up on Sept. 30 when used vehicle retailer CarMax reports its financial results. The market for used cars, trucks and SUVs has been red hot this year as a semiconductor shortage and supply chain constraints have hampered production of new vehicles. CarMax and its stock have benefitted from the surge in sales of second hand autos.
Year-to-date, KMX stock has risen 52% to $143.36 a share. CarMax’s share price has risen 14% during September despite widespread market turmoil.
Analysts are anticipating that CarMax will announce revenue of $6.85 billion and EPS of $1.89 when it reports next week. Analysts and professional investors say they like CarMax because it is behaving as a growth stock while also being a great bet on the U.S. economic reopening.
The company’s EPS has historically grown 12% a year, but it is expected to grow 66% this year driven by exceptionally strong sales of used vehicles. And the used vehicle market is forecast to remain strong well into next year as leading automakers continue to curtail production of new vehicles.
Bed Bath & Beyond (BBBY)
Source: ShutterstockRetailer Bed Bath & Beyond reports on Sept. 30 and should provide some indications of how consumer spending is performing heading into the upcoming holiday sales season, and whether the trend of people decorating their homes continues as the pandemic ebbs.
The bedding, furnishing and home decorating company’s stock has struggled recently after enjoying a big run at the start of the year. In the last six months, BBBY stock has declined 23% to $23.06. Yet, amazingly, the stock is still up 30% on the year.
The most recent news from the company is that it is expanding its partnership with DoorDash (NYSE:DASH) to provide on-demand delivery of the homeware products it sells at more than 700 Bed Bath & Beyond outlets and 120 buybuy BABY locations across the U.S. Consumers can purchase more than 60,000 products found on the Bed Bath and Beyond and buy buy BABY websites from the DoorDash app and get the items delivered in an hour. Analysts praise that kind of sales expansion. For its upcoming quarter, analysts are forecasting revenue of $2.06 billion and EPS of $0.52.
Earnings Reports Next Week: Paychex (PAYX)
Source: Eric Glenn / Shutterstock.comLastly, we’ll hear from Paychex on Sept. 30. The provider of human resources, payroll and benefits outsourcing services for small- to medium-sized businesses is expected to announce revenue of $1.04 billion and EPS of $0.80 for its most recent quarter.
The Rochester, New York-based company and its stock have been on a roll this year, up nearly 18% to $109.53. However, the share price has pulled back 7% since peaking at $118.22 in mid-August. Positive reactions to its latest earnings could spark another run higher for PAYX stock.
The company, which has operations in the U.S. and throughout Europe, has a history of providing solid gains to investors with an annualized return of 10.7% over the past decade and 13% over the last five years. The company is also known for having a strong cash position of nearly $1 billion and pays a healthy quarterly dividend that currently yields 2.7%. And demand for its outsourced services has risen with the global pandemic as companies scale back and outsource more of their operations as they struggle to find full-time permanent employees.
Strong earnings could propel PAYX stock higher.
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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