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Summary

  • Earnings season is officially over.
  • Yet there are still a few big names out there scheduled to report in this short trading week.
  • Among these are Costco, Michael Kors, AutoZone and Workday.

While earnings season might be officially over there are still plenty of earnings releases scheduled for the upcoming short trading week after the Memorial weekend.

Some of the larger names which are scheduled to open their books over the past quarter include Costco Wholesale (NASDAQ:COST), Michael Kors (NYSE:KORS), AutoZone (NYSE:AZO) and Workday (NYSE:WDAY), among many other firms.

AutoZone

The car retailer and distributor of automotive replacement parts and accessories is scheduled to release its earnings on Tuesday, the 27th of May before the opening bell.

Harsh weather amidst a cold winter has pushed up demand for replacement cars in recent months, thereby pushing up consensus estimates for the quarter.

On average, analysts are looking for earnings of $8.44 per share with estimates ranging from lows of $8.14 to highs of $8.70 per share. Sales are anticipated to increase by 5.8% to $2.33 billion with estimates ranging from $2.31 to $2.36 billion.

The company has not given an official guidance for this quarter, yet competitor Advance Auto Parts (NYSE:AAP) posted a solid set of earnings over the past week with comparable sales growth driven by the weather.

This should be comforting to investors, knowing that shares have been trading flat over the past quarter which thereby has not boosted expectations any further.

Workday

Workday is scheduled to release its earnings on Tuesday, the 27th of May after the closing bell. The provider of enterprise cloud-based applications had a tough quarter with shares selling off amidst the ¨momentum¨ sell-off in high-beta and technology names.

Analysts are looking for losses of $0.15 per share, with estimates ranging anywhere between a loss of $0.12 and $0.18 per share. At the midpoint of the guidance, losses per share would be unchanged from last year.

Revenue growth is projected to come in at 66.3% with revenues seen at $152.4 million. Estimates range from lows of $147.9 million to highs of $155.5 million. Consensus estimates are a bit higher than the official guidance given at the release of the fourth-quarter results. At the time, Workday guided for revenues of $148 to $153 million for the first quarter of the fiscal year.

Competitor Salesforce.com (NYSE:CRM) posted its results over the past week triggering a modest sell-off despite the company meeting estimates. Shares did manage to recover lost ground towards the end of the week.

Workday's results can result in quite some volatility traditionally as the company has seen a roller-coaster ride in its share price in recent months. Shares peaked at $116 following the fourth-quarter results but sold off to lows of $67 amidst the technology momentum sell-off. Ever since shares managed to recover to current levels at $78 per share.

Michael Kors

Luxury brand Michael Kors is set to release its latest earnings on Wednesday, 28th of May before the opening bell.

Consensus estimates for earnings stand at $0.65 to $0.78 per share with on average analysts looking for earnings of $0.68 per share. If achieved, earnings would be up significantly from reported earnings of $0.50 per share last year.

Median sales are anticipated to increase by 36.5% to $815.3 million although sales estimates range from $795 million to levels as high at $891.7 million.

At the release of the third-quarter results Michael Kors anticipated sales of $790-$800 million for the upcoming quarter, indicating that expectations are a bit higher. The company anticipates earnings of $0.63 to $0.65 per share while the investment community won't be pleased with results if they come in within the company's own guidance.

Often cited competition in the luxury segment and weather effects are things to look forward to in the report as expectations remain high into the quarter. This is despite the fact that shares have given up some 3% over the past three months.

Costco Wholesale

The retail giant is scheduled to release its on Thursday, 29th of May before the market opens.

Consensus estimates for earnings range between $1.03 and $1.15 but average out at $1.09 per share. This compares to last year's earnings of $1.04 per share.

Costco is expected to report revenues of $25.70 billion with estimates ranging from $25.35 to $26.4 billion, up significantly from reported revenues of $24.10 billion last year.

Visibility into Costco's performance is typically good with the company releasing monthly sales numbers. March sales rose by 8% to $10.43 billion while sales in April were up by 7% to $8.56 billion.

Analysts will be looking at weather effects, membership fee revenues and further expansion of the business. Expectations are modest with shares trading flat over the past three months. Recently, many other retailers including food retailers noted that harsh weather impacted the performance of their business in recent months.

Implications For Investors

Earnings events can be notoriously volatile these days, notably in technology and retail related names. Especially the earnings release of Michael Kors and Workday have a heightened anticipated volatility given the higher valuation and growth prospects of those businesses.

Please consider the risks when investing in companies when holding your positions over their earnings release unless you are a truly long-term investor with a long time horizon. Good luck!

Source: While Earnings Season Is Officially Over, These Big Names Are Scheduled To Report This Week