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We’ll get a hodgepodge of corporate earnings this week as several household names announce their results for the April-through-June period. These include major technology firms and retailers. Taken together, the earnings could help to sway markets.
With 87% of companies in the S&P 500 having reported their second-quarter earnings results, 75% have announced better-than-expected earnings per share and 70% have beat expectations for their quarterly revenue, according to data from FactSet. That said, the blended earnings growth rate for Q2 is 6.7%, which is the lowest earnings growth rate since the fourth quarter of 2020.
The slowdown in earnings is no doubt weighing on the stock market as investors and analysts consider the implications and outlook for corporate America. Here are seven stocks reporting earnings the week of Aug. 29.
BIDUBaidu$136.90CRWDCrowdStrike$193.82BBYBest Buy$75.09CHWYChewy$37.32CHPTChargePoint$14.64AVGOBroadcom$502.88LULULululemon$305.54Stocks Reporting Earnings This Week: Baidu (BIDU)
Source: StreetVJ / Shutterstock.comTechnology giant Baidu (NASDAQ:BIDU) reports earnings with Chinese stocks under intense scrutiny in the U.S. BIDU stock, and other China-based securities, were rocked recently by news that several major Chinese state-owned enterprises are delisting from U.S. stock exchanges due to an ongoing fight between regulators in Washington and Beijing over accounting and auditing practices.
Baidu, which specializes in artificial intelligence technology and internet-related services, is also recovering from the year-long crackdown on publicly traded companies undertaken by Chinese authorities. The crackdown led to layoffs at the company. Year to date, BIDU stock is down 8% and trading below $140.
In terms of its financial results, the company just reported 15.79 yuan in earnings per share on 29.65 billion yuan in revenue. Earnings and revenue came in above expectations.
CrowdStrike (CRWD)
Source: VDB Photos / Shutterstock.comThe earnings print from cybersecurity firm CrowdStrike (NASDAQ:CRWD) can be expected to draw attention. The entire cybersecurity sector has been placed on the front burner ever since Russia invaded Ukraine this past February, with President Joe Biden himself warning of increased threats posed by foreign hackers and the prospect of cyberwarfare between nations.
Following a steady rally since early May, CRWD stock is down 5% this year. However, the stock is trading 25% below the level it was at 12 months ago amid persistent weakness in technology securities.
For its upcoming earnings, Wall Street is forecasting that CrowdStrike will report earnings per share of 27 cents on revenues of $515 million.
Best Buy (BBY)
Source: Ken Wolter / Shutterstock.comIt’s been a mixed bag from retailers this earnings season. While some retail companies, such as Dick’s Sporting Goods (NYSE:DKS), have knocked the cover off the ball, others such as Nordstrom ( NYSE:JWN) have struck out and seen their stock punished as a result. Many retailers have also provided weak forward guidance.
Consumer electronics retailer Best Buy (NYSE:BBY) pre-announced its second-quarter results, lowering its forecast for the year and the second quarter due to weak demand. Best Buy said it expects same-store sales to decline 11% for the fiscal year, compared with a drop of 3% to 6% previously forecast in May.
The deteriorating outlook has hurt BBY stock, which is down 25%. The company reported earnings of $1.54 on revenue of $10.33 billion.
Chewy (CHWY)
Source: Chie Inoue / Shutterstock.comOnline pets product company Chewy (NYSE:CHWY) also reports earnings this week, and shareholders have their fingers crossed for some good news out of the retailer. In its previous earnings print, Chewy reported that its revenue growth slowed to 14%, while its adjusted earnings declined by 22% to $60.5 million.
CHWY stock has also been hit by a number of analyst downgrades, most recently from Wedbush Securities, which lowered its rating on the stock to “neutral” from “outperform” and placed a $44 price target on the shares. So far this year, Chewy’s stock has fallen nearly 60%.
Analysts expect Chewy to report an earnings per share loss of 11 cents on revenue of $2.48 billion when it announces earnings on Aug. 30.
ChargePoint (CHPT)
Source: Michael Vi / Shutterstock.comIt continues to be a rollercoaster for shares of ChargePoint (NYSE:CHPT), the largest manufacturer of electric vehicle charging stations in the world. The stock has recovered with news that the Biden administration has passed into law its sweeping bill aimed at fighting climate change, which includes $5 billion for electric vehicle chargers.
However, even though CHPT stock has rallied nearly 70% since May, its share price remains down 24% on the year. While the long-term potential of ChargePoint remains promising, many analysts and commentators say they can’t recommend the company because it remains unprofitable.
Analysts who cover CHPT stock are calling for the company to announce no earnings on revenues of $104 million.
Broadcom (AVGO)
Source: Sasima / Shutterstock.comBroadcom (NASDAQ:AVGO) remains a major producer of semiconductors that are used in data centers, broadband internet, and data storage. However, the company does not get nearly as much attention as peers such as Nvidia (NASDAQ:NVDA) and Advanced Micro Devices (NASDAQ:AMD).
Perhaps the fact that Broadcom has been around since 1961 lends the company an air of legacy? Regardless of the reason, Broadcom continues to perform strongly despite global supply chain issues and a flight from tech stocks. In its previous earnings, the company reported revenues of $8.1 billion, up 22.6% from a year ago, and earnings per share of $9.07, up 37% from $6.62 a year earlier.
Year to date, AVGO stock is down 25%. For this year’s second quarter, analysts anticipate that Broadcom will report earnings per share of $9.56 on revenues of $8.37 billion.
Lululemon (LULU)
Source: Richard Frazier / Shutterstock.comLastly, we’ll hear from Lululemon (NASDAQ:LULU). Like many retailers, Lululemon’s stock has struggled this year, down 22% since January. However, LULU stock remains up 93% from its pandemic low reached in March 2020, which is indicative of the brand’s popularity and loyalty among consumers.
Like other companies, notably Starbucks (NASDAQ:SBUX) and Amazon (NASDAQ:AMZN), Lululemon has been fending off unionization drives at its retail outlets this year.
Analysts expect Lululemon to issue Q2 earnings per share of $1.86 on revenues of $1.76 billion.
On the date of publication, Joel Baglole held a long position in NVDA. 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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