In this article, we will take a look at the 10 notable earnings reports to watch. You can skip our detailed analysis of these companies, and go directly to the 5 Notable Earnings Reports to Watch.
Most U.S. stocks have exceeded profit and sales expectations for the second quarter, mainly due to a surge in demand for their products and services amid recovering economy. Various companies from consumer cyclical, consumer defensive, and technology sectors have come up with their quarterly results in recent days.
Dave & Buster’s Entertainment, Inc. (NASDAQ: PLAY), Zscaler, Inc. (NASDAQ: ZS), The Kroger Co. (NYSE: KR), Academy Sports and Outdoors, Inc. (NASDAQ: ASO), and RH (NYSE: RH) were among the notable stocks that recently announced upbeat financial results.
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To discuss the detailed financial performance of these stocks, let’s start our list of 10 notable earnings reports to watch.
10 Notable Earnings Reports to Watch
10. Zumiez Inc. (NASDAQ: ZUMZ)
Number of Hedge Fund Holders: 18
Zumiez Inc. (NASDAQ: ZUMZ) traces its roots back to 1978 when former J.C. Penney employees Thomas Campion and Gary Haakenson established a clothing store in Seattle. They targeted young men and women with their clothing products, and their store gained popularity within few years following its inception. Over the years, aggressive expansion and continuous focus on teenagers helped Zumiez become a leading specialty retailer of apparel, footwear, and accessories.
The company recently announced mixed financial results for the second quarter. Zumiez Inc. (NASDAQ: ZUMZ) reported adjusted earnings of $1.02 per share for the three months ended July 31, surpassing the consensus forecast of 78 cents per share. However, the quarterly revenue of $268.7 million missed analysts’ average estimate of $280 million.
Speaking on the results, CEO Rick Brooks said:
“Our second quarter performance reflects the sustained success our business has experienced over the past several years. After driving solid growth as we reopened our stores in the second quarter of last year, our teams once again did a terrific job adapting to the current environment to fulfill robust demand for our distinct merchandise offering. Stronger than expected full priced selling helped offset a portion of expenses that were reintroduced following temporary cost savings last year during the height of the pandemic, resulting in second quarter profitability that meaningfully exceeded our projections.”
Like Zumiez Inc. (NASDAQ: ZUMZ), Dave & Buster’s Entertainment, Inc. (NASDAQ: PLAY), Zscaler, Inc. (NASDAQ: ZS), The Kroger Co. (NYSE: KR), Academy Sports and Outdoors, Inc. (NASDAQ: ASO), and RH (NYSE: RH) also came into the limelight after releasing their quarterly results.
9. AeroVironment, Inc. (NASDAQ: AVAV)
Number of Hedge Fund Holders: 20
Shares of AeroVironment, Inc. (NASDAQ: AVAV) fell nearly 13 percent on Thursday, 9 September 2021, despite posting a narrower-than-expected loss for its fiscal first quarter. The California-based defense contractor reported an adjusted loss of 17 cents per share, compared to earnings of 44 cents per share in the year-ago period.
Analysts, on average, were expecting AeroVironment, Inc. (NASDAQ: AVAV) to report a loss of 24 cents per share. Revenue for the quarter rose 16 percent on a year-over-year basis to $101.0 million, ahead of the consensus forecast of $96.48 million.
Discussing the quarterly performance, CEO Wahid Nawabi said in a statement:
“We delivered results in-line with our previous guidance, while building a record backlog, including both organic and inorganic growth. Further, we continue to successfully integrate our three recently acquired businesses, which are key contributors to our future success.”
Looking forward, AeroVironment, Inc. (NASDAQ: AVAV) expects adjusted earnings in the range of $2.50 – $2.70 per share and revenue between $560 – $580 million for its fiscal year 2022.
8. Korn Ferry (NYSE: KFY)
Number of Hedge Fund Holders: 21
Korn Ferry (NYSE: KFY) recently announced record results for its fiscal first quarter. The management consulting firm reported adjusted earnings of $1.37 per share for the three months ended July 31, compared to a loss of 19 cents per share in the same period last year.
Analysts were looking for earnings of $1.07 per share. In addition, Korn Ferry (NYSE: KFY) posted revenue of $588.1 million, well above $346.9 million in the year-ago quarter and ahead of the consensus forecast of $540.5 million.
CEO Gary D. Burnison expressed his pleasure over the results. Burnison said:
“I am extremely pleased with our results during the fiscal first quarter, as Korn Ferry once again achieved all-time financial performance highs. We generated a record $585 million in fee revenue, up 70% year over year.”
Korn Ferry (NYSE: KFY) also issued the financial outlook for its fiscal second quarter. It expects adjusted earnings in the range of $1.30 – $1.44 per share and fee revenue between $585 – $615 million.
Dave & Buster’s Entertainment, Inc. (NASDAQ: PLAY), Zscaler, Inc. (NASDAQ: ZS), The Kroger Co. (NYSE: KR), Academy Sports and Outdoors, Inc. (NASDAQ: ASO), and RH (NYSE: RH) also caught investors’ attention after their upbeat quarterly results.
7. ABM Industries Incorporated (NYSE: ABM)
Number of Hedge Fund Holders: 23
ABM Industries Incorporated (NYSE: ABM) is engaged in providing energy, janitorial, landscape, parking, and transportation services to various industries. The company recently announced better-than-expected financial results for its fiscal third quarter, mainly driven by the reopening of offices, airports, and sports venues.
The facility solutions provider reported adjusted earnings of 90 cents per share, up from 75 cents per share in the year-ago quarter. Analysts expected ABM Industries Incorporated (NYSE: ABM) to post adjusted earnings of 81 cents per share.
Revenue for the quarter increased 10.7 percent to $1.54 billion, beating the consensus forecast of $1.5 billion. Revenue from the aviation segment jumped 51 percent on a year-over-year basis, helped by a recovery in domestic air travel.
Commenting on the quarter, CEO Scott Salmirs said:
“ABM generated strong third quarter financial results, driven by continued broad-based demand for our services and efficient execution within an improving business environment. Revenue increased at a double-digit rate, with each of our business segments achieving year-over-year growth, led by Aviation and Technical Solutions, along with continued solid growth in Business & Industry. Demand for our virus protection services remained strong, a trend that we expect to continue as clients value the health and safety benefits associated with frequent cleaning and disinfecting of high traffic locations.”
ABM Industries Incorporated (NYSE: ABM) also updated the earnings guidance for its full fiscal year. It now expects adjusted earnings in the range of $3.45 – $3.55 per share, compared to its previous forecast of $3.30 – $3.50 per share.
Like ABM Industries Incorporated (NYSE: ABM), Dave & Buster’s Entertainment, Inc. (NASDAQ: PLAY), Zscaler, Inc. (NASDAQ: ZS), The Kroger Co. (NYSE: KR), Academy Sports and Outdoors, Inc. (NASDAQ: ASO), and RH (NYSE: RH) have also come under investors’ radar after announcing their quarterly earnings.
6. Affirm Holdings, Inc. (NASDAQ: AFRM)
Number of Hedge Fund Holders: 25
Shares of Affirm Holdings, Inc. (NASDAQ: AFRM) hit a 7-month high after announcing record revenue for its fiscal fourth quarter. The company generated revenue of $261.8 million in the quarter, up 71 percent from the comparable period of 2020 and above the consensus forecast of $224.4 million.
Moreover, Affirm Holdings, Inc. (NASDAQ: AFRM) reported a loss of 48 cents per share, compared to earnings of 17 cents per share in the year-ago quarter. Analysts were looking for a loss of 29 cents per share.
Speaking on the performance, CEO Max Levchin said:
“Affirm’s strong results this quarter and fiscal year demonstrate the progress we are making in rapidly expanding our network. More consumers and merchants are continuing to choose Affirm because of our ability to offer a variety of ways to pay, thanks to our unrivaled technology. During the fourth quarter, we increased the number of merchants on our platform by more than fivefold, more than doubled gross merchandise volume and grew active consumers by 97% year over year.”
Looking forward, Affirm Holdings, Inc. (NASDAQ: AFRM) expects revenue in the range of $240 million to $250 million for its fiscal first quarter, above the consensus forecast of $232.6 million.
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Disclosure: None. 10 Notable Earnings Reports to Watch is originally published on Insider Monkey.
