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Earnings season is starting to wind down. However, there are still several major companies set to report in the coming week. Over the next five trading days, we will hear from some of the biggest retailers and technology companies in the U.S. as they release earnings reports primarily from this year’s second quarter that ran between April and the end of June.
Wall Street will be watching several bellwether companies to better understand if the economic reopening is holding up and gaining momentum or being hampered by the continued spread of the Covid-19 delta variant. As always, analysts will also be watching for forward guidance to get a sense of how corporate leaders see things progressing throughout the remainder of the year.
Here are seven companies reporting earnings the week of Aug. 23:
- Palo Alto Networks (NYSE:PANW)
- Best Buy (NYSE:BBY)
- Salesforce (NYSE:CRM)
- Dick’s Sporting Goods (NYSE:DKS)
- Dell (NYSE:DELL)
- Marvell Technology (NASDAQ:MRVL)
- Peloton Interactive (NASDAQ:PTON)
Earnings Reports Next Week: Palo Alto Networks (PANW)
Source: Sundry Photography / Shutterstock.comThe shine has come off cybersecurity firm Palo Alto Networks stock. After running up 26% between May 13 and August 5 to a peak of $406.92 a share, PANW stock has taken a downturn. Over the past two weeks, the share price has slumped 10% and is now struggling to stay above $365. Shareholders will be looking for strong second quarter results to give the stock a boost and get it trending upwards again. The recent decline came after the company announced a management shake-up with cybersecurity expert BJ Jenkins joining Palo Alto Networks as its new president.
The dip in Palo Alto Networks and other cybersecurity stocks has also been caused by the announced $8.1 billion merger between NortonLifeLock (NASDAQ:NLOK) and Avast (LON:AVST), two of the biggest players in the sector. For its second quarter results that Palo Alto Networks is reporting on Aug. 23, analysts expect the company to announce earnings per share (EPS) of $1.43, which would represent a year-over-year decline of 3.4%. Revenue of $1.17 billion is forecast for the quarter, which would be an increase of 23% from a year earlier.
Best Buy (BBY)
Source: BobNoah / Shutterstock.comConsumer electronic and appliance retailer Best Buy reports earnings on Aug. 24. Analysts will be scrutinizing the results to gauge how the company’s online and in-store sales are holding up as the economy reopens. Shareholders will be hoping for a post-earnings bounce in BBY stock, which has underperformed this year. In the past six months, Best Buy’s share price has fallen 5% to around $110. Over the past year, the stock is up by less than half a percent.
For the upcoming quarter, analysts on Wall Street expect the retailer to report revenue of $11.49 billion and EPS of $1.85. E-commerce sales will likely determine just how successful Best Buy’s latest results are. In the first quarter of this year, online sales accounted for 33% of the company’s revenue. The question is will those online sales continue to grow now that consumers are back to shopping in-store? For the most part, analysts remain bullish on Best Buy stock. Bank of America has reiterated its “buy” rating on BBY stock with a $145 price target.
Earnings Reports Next Week: Salesforce (CRM)
Source: Bjorn Bakstad / Shutterstock.comBig things are expected from cloud computing giant Salesforce when it announces its latest quarterly earnings on Aug. 25. CRM stock has only begun to recover in recent weeks, having risen 8% in the past month to $253 a share at the start of Aug. 20. The bump has brought the stock’s year-to-date gains to 15.6%. Analysts and investors have found Salesforce’s performance frustrating given the company’s size, influence and market leading position in cloud computing. The company recently announced a $28 billion acquisition of Slack.
With the Slack deal now closed and Salesforce beginning to integrate the company, CRM stock has begun to trend higher again. Shareholders are hoping that the Slack integration will enable Salesforce to maintain the 35% compound annual growth rate (CAGR) that the company enjoyed between 2005 and 2021. Or better yet, Salesforce could make good on its pledge to more than double its annual revenue to $50 billion by 2026. For its upcoming quarterly earnings, Wall Street is looking for Salesforce to report revenue of $6.24 billion and EPS of 92 cents.
Dick’s Sporting Goods (DKS)
Source: Jonathan Weiss / Shutterstock.comRetailer Dick’s Sporting Goods also reports on Aug. 25 and should provide a snapshot of how consumer spending is doing, particularly on discretionary items such as running shoes, workout gear and football cleats. DKS stock has been on a tear this year as investors large and small have targeted it as a prime reopening play. Dick’s share price has climbed 14% higher over the past month and is up 93% on the year at $105.
The win streak is likely to continue for Dick’s Sporting Goods as the retail chain’s 855 store locations see increased foot traffic with parents and kids out back-to-school shopping. The company has beat the consensus estimates of analysts in the past four consecutive quarters. Will it make it five quarters when it reports next week? In its last earnings, Dick’s reported EPS of $3.79 versus the consensus estimate of $1.04, a huge beat. The company’s revenue in the first quarter of this year beat analyst estimates by 32%.
For the upcoming second quarter results, analysts forecast that Dick’s Sporting Goods will report EPS of $2.70 on revenues of $2.82 billion.
Earnings Reports Next Week: Dell (DELL)
Source: Jonathan Weiss / Shutterstock.comTechnology giant Dell will announce earnings on Aug. 26. The maker of both personal computers and software has seen its stock perform solidly so far in 2021. Over the past six months, DELL stock has risen 21% to $97.37 per share at the start of Aug. 20, including a 5% lift over the past month. The company’s share price is currently not far from its all-time high of $104.62. The bull run can be attributed to strong sales in its core personal computer business, a growing share of the enterprise computing market and several analyst upgrades.
Citigroup analyst Jim Suva recently named Dell’s stock his “top stock for 2021,” and added DELL stock to the company’s “U.S. Focus List.” The bank noted that Dell should continue to benefit from near-term growth in personal computer opportunities and get a boost in enterprise computing demand throughout the second half of this year and into 2022. For its upcoming quarter, analysts forecast that Dell will report EPS of $2.03 on revenues of $25.5 billion.
Marvell Technology (MRVL)
Source: Michael Vi / Shutterstock.comSemiconductor company Marvell Technology also announces earnings on Aug. 26 and could provide a barometer for the shortage of semiconductors and microchips that has plagued industries ranging from automotive to smartphones throughout the year. MRVL stock has been a strong performer this year, up 13% over the past six months to $58.84 a share at the start of Aug. 20. The stock has climbed 7% in the past month leading into its latest earnings.
Marvell has been given a lift from the deployment of 5G wireless networks and smartphones, increased data center capacity, and higher usage of its chips in motor vehicles. The company’s revenue increased 20% in the first quarter from a year earlier to $832 million. Marvell’s recently completed acquisition of chipmaker Inphi is expected to add $215 million to the company’s top line.
Wall Street is calling for Marvell to report Q2 EPS of 31 cents on revenue of $1.08 billion.
Earnings Reports Next Week: Peloton Interactive (PTON)
Source: JHVEPhoto / Shutterstock.comCan Peloton Interactive stock recover following a big selloff in this year’s first half? That’s the question analysts will be trying to assess when the maker of treadmills and exercise bikes reports its latest quarterly earnings on Aug. 26. PTON stock was one of the best performers last year as people were forced to work out from home during the pandemic. But so far this year, the company’s share price is down 29% to $109 as of Aug. 20. The stock’s all-time high of $171.09 was reached in the middle of January. Since then, the stock has been running down hill.
The decline hasn’t only been do to slowing sales as people return to gyms and fitness centers. Peloton has also been hit with a massive recall of its interactive treadmills following reports that children were being hurt by the machines. In May of this year, Peloton voluntarily recalled 125,000 Tread+ machines and 1,050 Tread products in the U.S. The negative publicity linked to the recall and child injuries did nothing to help Peloton’s reputation and hurt PTON stock.
Analysts are forecasting that Peloton will report an EPS loss of 44 cents on revenues of $921.7 million.
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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