Despite the end of june usually being a quiet time for the stock market, the earnings calendar for this week is surprisingly full. A number of big names in several key sectors are expected to report on their earnings over the next seven days.
One of the leading sectors for the forthcoming week is that of consumer packaged goods. Brands such as Conagra Brands (CAG), McCormick (MKC), General Mills (GIS) and Constellation Brands (STZ) are all due to release their earnings report for the last quarter. This means that the market is expecting to get some pretty good data on the supplier side of the market, following Kroger’s (KR) report last week. Kroger- one of the largest retail companies in the US reported decent, but not particularly overwhelming figures.
In other sectors, logistics giant FedEX (FDX) are due to drop their fiscal fourth-quarter results tomorrow. Whilst FedEx are not the economic success story they once were, investors are keen to see howM they perform. United Parcel Service (UPS) are also expected to report this week and investors will be looking to see how both companies fare against increasing pressure from Amazon (AMZN).
Eyes will also be upon BlackBerry (BB), and KB Home (KBH) as well, but these are not the most important reports of the week. Savvy investors should keep their eyes out for these three earning reports before shutting down for summer vacation!
Micron (MU) Tuesday 25 June
There is no doubt that Micron has been in dire need of a decent earnings report recently and the semiconductor industry has been battling poor results and low optimism during the first half. The less than impressive earnings from Broadcom (AVGO) last week were yet another signal that the chip rebound is unlikely to happen before 2020.
Micron prices are very much heading in the wrong direction meain prices are low. Whilst it might be tempting to buy as they are so cheap, remember, this is only because it seems likely that declines will continue for the foreseeable future. If however, Micron management can convince investors otherwise, the stock will rise and likely bring other clip stocks, and their suppliers, with them.
Walgreens Boots Alliance (WBA) Thursday 27 June
Pharmacy chain Walgreens Boots Alliance is due to report on Thursday, following a five-year low. But it is not alone in its poor performance with CVS Health (CVS) who reported a six-year low last month along with Rite Aid (RAD) who are in a similar situation.
Both WBA and the industry as a whole are in desperate need of good news from the earnings reports, but it is not looking optimistic. Front-end sales trends have been overall negative within the sector with no sign of their decline stopping. Factors such as higher drug costs and a lack of generics are all partly to blame, and show no signs of resolving anytime soon.
Also due on Thursday is the earnings report from sports superstar brand, Nike. The company has long been something of a barometer for consumer confidence due to its niche, and high-price offerings. The stock itself doesn’t generally shift much after earnings are announced, but what management have to say, and the numbers themselves, do impact other brands in the sector.
This report is particularly interesting however as we could see an impact from the state of US-China relations. Nike not only manufactures products in China, but it gets 15% of its sales from the country as well.