Earnings Week Ahead: Homebuilders, FedEx, and more

Jun. 17, 2022 4:12 PM ETFedEx Corporation (FDX), LEN, SWBI, DRIKBH, PGR, LAZ, WGO, KFY, RAD, BB, KMX, CVNA, BB:CABy: Kevin P. Curran, SA News Editor3 Comments

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With Wall Street facing a holiday-shortened schedule, next week is relatively sparse in terms of earnings reports. Still, a handful of big-name companies will announce their latest quarterly updates. This includes shipping giant FedEx (NYSE:FDX), as well as two of the nation’s largest homebuilders in Lennar (NYSE:LEN) and KB Home (KBH). Smith & Wesson (NASDAQ:SWBI), the largest U.S. firearm manufacturer, is also on the list of firms reporting their financial figures.

Below is a curated list of companies due to update investors on quarterly results during the week as markets remain choppy into the close of the calendar quarter.

Monday, June 20:

Market closed for Juneteenth holiday

Tuesday June, 21:

Lennar Corporation (LEN)

Before the open, homebuilder Lennar (LEN) will provide its quarterly update. The company represents the second-largest U.S. home construction company based on the number of homes sold. The results follow disappointing macro news about the housing market. According to the latest data, mortgage rates showed their highest weekly growth in 35 years and housing starts experienced a steep drop in May.

Shares of the Miami-based homebuilder have fallen over 40% in 2022, touching a 52-week low on the Friday prior to its expected earnings release.

  • Consensus EPS Estimates: $3.97

  • Consensus Revenue Estimates: $8.12B

  • Earnings Insight: Lennar has beaten EPS estimates for 8 consecutive quarters, missing revenue estimates twice in that same span.

Also Reporting: Progressive Corporation (PGR) and La-Z-Boy (LAZ)

Wednesday, June 22

KB Home (KBH)

Following on from Lennar’s (LEN) report on the previous day, fellow homebuilder KB Home (KBH) is set to report after Wednesday’s market close. Much like its peer reporting on the day prior, the stock has sold off sharply amidst a spate of adverse macroeconomic reports in recent weeks. Shares touched a 52-week low on June 17, bringing its year-to-date losses to over 40%.

  • Consensus EPS Estimates: $2.03

  • Consensus Revenue Estimates: $1.65B

  • Earnings Insight: KB Home has exceeded EPS estimates in 5 of the past 8 quarters and revenue expectations in 6 of the past 8 quarters.

Also reporting: Winnebago Industries (WGO) and Korn Ferry (KFY).

Thursday, June 23

FedEx Corporation (FDX)

Only about a week after approving a boardroom reshuffle and a raised dividend, FedEx Corporation (FDX) is set to report its fiscal fourth quarter earnings after Thursday’s market close. The earnings call will be the first to be helmed by newly-named CEO Raj Subramaniam, who succeeded founder Fred Smith on June 1. While the package-delivery giant has significantly outperformed the broader market in recent months, Morgan Stanley recently warned clients that it expects the company to miss consensus EPS on earnings day.

  • Consensus EPS Estimates: $6.88

  • Consensus Revenue Estimates: $24.46B

  • Earnings Insight: FedEx has exceeded revenue expectations for 8 consecutive quarters, beating EPS estimates for 75% of those reports.

Darden Restaurants (NYSE:DRI)

Prior to the market open, the casual dining restaurant company will provide its fiscal fourth quarter update. Shares of the Florida-based parent company of Olive Garden and LongHorn Steakhouse have fallen precipitously in recent weeks, slumping to a 52-week low in the week ahead of its earnings release. The slide has come amid a slough of pessimistic analyst comments, with KeyBanc, MKM Partners, and Raymond James all cutting estimates in the week ahead of earnings. On the other side of the argument, Barclays recently advised clients that the stock is historically the most resilient among restaurants in a recessionary scenario.

  • Consensus EPS Estimates: $2.21

  • Consensus Revenue Estimates: $2.54B

  • Earnings Insight: Darden has beat on EPS estimates for 7 of the last 8 quarters, while missing revenue consensus in 50% of those reports.

Smith & Wesson Brands (SWBI)

After the market close, the largest firearm manufacturer in the U.S. will release its fiscal fourth quarter earnings result. Results from Smith & Wesson (SWBI) comes in an atmosphere of increased regulatory scrutiny – the firm will be the first gun manufacturer to report results following the approval of a major gun control bill in the House of Representatives, a fact that could play a role in its forward guidance.

  • Consensus EPS Estimates: $0.67

  • Consensus Revenue Estimates: $179.85M

  • Earnings Insight: Smith & Wesson has beat EPS estimates in 6 of the last 8 quarters while surpassing revenue expectations in 5 of those quarters.

Also reporting: Rite Aid Corp. (RAD) and BlackBerry Ltd. (BB)

Friday, June 24

CarMax (KMX)

Prior to Friday’s market open, online auto retailer CarMax (KMX) will offer its quarterly update. The stock has sold off sharply heading into the earnings report, falling to a 52-week low alongside many peers – victims of the recent market pullback and changing dynamics within the used car market. That said, analysts have advised the earnings set up could be better than other online auto retailers. For example, Guggenheim analyst Ali Faghri told clients that Carvana’s (CVNA) sustained struggle of late keeps further downside for competitor KMX in check.

  • Consensus EPS Estimates: $1.57

  • Consensus Revenue Estimates: $9.27B

  • Earnings Insight: Carmax has carried past EPS estimates in 5 of the last 8 quarters, while missing revenue expectations only once.

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