Valhalla’s Most Anticipated Earnings / September 19th 2022

AutoZone, Inc., ($AZO)
AutoZone, Inc., ($AZO) is confirmed to report earnings at approximately 6:55 AM EST on Monday 19th. The consensus estimate by the Earnings Whisper is for $38.31 per share on a revenue of $5.15 billion. AZO reported 3rd Quarter May 2022 earnings of $29.03 per share on revenue of $3.9 billion. Revenue grew 5.9% on a year-over-year basis. Investor sentiment going into the company’s earnings release has 65% expecting an earnings beat. Short interest is considered to be healthy with 2.37% of the float being sold short. The stock has drifted lower by 5.92% from its open following the earnings release. Option traders are pricing in a 4.6% move on earnings.

General Mills, Inc., ($GIS)
General Mills, Inc., ($GIS) is confirmed to report earnings at approximately 7:00 AM EST on Wednesday 21st. The consensus estimate by the Earnings Whisper is for $0.99 per share on a revenue of $4.69 billion. GIS reported Quarter May 2022 earnings of $1.12 per share on revenue of $4.9 billion. Revenue grew 8.1% on a year-over-year basis. Investor sentiment going into the company’s earnings release has 70% expecting an earnings beat. Short interest is considered to be healthy with 2.22% of the float being sold short. The stock has drifted higher by 12.18% from its open following the earnings release. Option traders are pricing in a 5.6% move on earnings.

Lennar Corp., ($LEN)
Lennar Corp., ($LEN) is confirmed to report earnings at approximately 4:30 PM EST on Wednesday 21st. The consensus estimate by the Earnings Whisper is for $4.77 per share on a revenue of $9.03 billion. LEN reported 2nd Quarter May 2022 earnings of $4.69 per share on revenue of $8.4 billion. Revenue grew 30.0% on a year-over-year basis. Investor sentiment going into the company’s earnings release has 29% expecting an earnings beat. Short interest is considered to be healthy with 4.95% of the float being sold short. The stock has drifted higher by 4.95% from its open following the earnings release. Option traders are pricing in a 5.5% move on earnings.

Accenture Ltd., ($ACN)
Accenture Ltd., ($ACN) is confirmed to report earnings at approximately 6:45 AM EST on Thursday 22nd. The consensus estimate by the Earnings Whisper is for $2.56 per share on a revenue of $15.38 billion. ACN reported 3rd Quarter May 2022 earnings of $2.79 per share on revenue of $16.2 billion. Revenue grew 21.8% on a year-over-year basis. Investor sentiment going into the company’s earnings release has 77% expecting an earnings beat. Short interest is considered to be healthy with 0.70% of the float being sold short. The stock has drifted lower by 0.95% from its open following the earnings release. Option traders are pricing in a 4.3% move on earnings.

Costco Wholesale Corp., ($COST)
Costco Wholesale Corp., ($COST) is confirmed to report earnings at approximately 4:15 PM EST on Thursday 22nd. The consensus estimate by the Earnings Whisper is for $4.11 per share on a revenue of $72.04 billion. COST reported 3rd Quarter May 2022 earnings of $3.17 per share on revenue of $52.6 billion. Revenue grew 16.2% on a year-over-year basis. Investor sentiment going into the company’s earnings release has 67% expecting an earnings beat. Short interest is considered to be healthy with 0.93% of the float being sold short. The stock has drifted higher by 10.73% from its open following the earnings release. Option traders are pricing in a 4.0% move on earnings.

FedEx Corp., ($FDX)
FedEx Corp., ($FDX) is confirmed to report earnings at approximately 4:00 PM EST on Thursday 22nd. The consensus estimate by the Earnings Whisper is for $5.06 per share on a revenue of $23.59 billion. FDX reported Quarter May 2022 earnings of $6.87 per share on revenue of $24.4 billion. Revenue grew 8.1% on a year-over-year basis. Investor sentiment going into the company’s earnings release has 62% expecting an earnings beat. Short interest is considered to be healthy with 1.38% of the float being sold short. The stock has drifted lower by 11.93% from its open following the earnings release. Option traders are pricing in a 5.6% move on earnings.

7 Likes

This news just dropped about FedEx after-hours (Thursday):

FedEx moves to cut costs, withdraws 2023 guidance after first-quarter shipments disappoint

  • FedEx withdrew its full-year guidance and announced significant cost-cutting measures following what it called softness in global volume of shipments.
  • The company will close 90 offices, five corporate locations and defer hiring.
  • First-quarter revenue and earnings per share fell short of Wall Street expectations.

https://www.businesswire.com/news/home/20220915005864/en/FedEx-Reports-Preliminary-First-Quarter-Financial-Results-and-Provides-Update-on-Outlook

Fedex

1 Like

Okay, with that FedEx news which is pushing the stock past -14%, I’m seeing the following stocks get dick-punched in sympathy:

UPS, AMZN, ODFL, JBHT

We’ll have to see how things pan out in the morning…

5 Likes

Fedex Ground $300mm below forecast (US weakness); Express $500mm below forecast impacted by weak macro (Asia, Europe).

Ouch. This should impact tomorrow more than anything.

(Source)

1 Like

FedEx is quiet costly versus Amazon/prime no? I’ve ordered past week including this week and received it within 1-2 day. Will it affect others probably yes. However, Amazon is closing some of their warehouses too I believe including a big one in Jersey.

1 Like

FedEx CEO on going all bearish: “Can’t stop, won’t stop!”

Source: FedEx CEO Says He Expects the Economy to Enter a ‘Worldwide Recession’ – NBC 5 Dallas-Fort Worth

FedEx CEO Raj Subramaniam told CNBC’s Jim Cramer on Thursday that he believes a recession is impending for the global economy.

“I think so. But you know, these numbers, they don’t portend very well,” Subramaniam said in response to Cramer’s question of whether the economy is “going into a worldwide recession.”

The CEO’s pessimism came after FedEx missed estimates on revenue and earnings in its first quarter. The company also withdrew its full year guidance.

Shares of FedEx fell 15% in extended trading on Thursday.

“I’m very disappointed in the results that we just announced here, and you know, the headline really is the macro situation that we’re facing,” Subramaniam said in an interview on “Mad Money.”

The chief executive, who assumed the position earlier this year, said that weakening global shipment volumes drove FedEx’s disappointing results. While the company anticipated demand to increase after factories shuttered in China due to Covid opened back up, it actually fell, he said.

“Week over week over week, that came down,” Subramaniam said.

The chief executive also said that the loss in volume is wide-reaching, and that the company has seen weekly declines since around its investor day in June.

“We’re seeing that volume decline in every segment around the world, and so you know, we’ve just started our second quarter,” he said. “The weekly numbers are not looking so good, so we just assume at this point that the economic conditions are not really good.”

“We are a reflection of everybody else’s business, especially the high-value economy in the world,” he later added.

5 Likes

IYT contains ODFL FDX UPS and all the big rails. I’m their top 10. Might be ETF to watch.

IYT already down this morning and I believe more room to fall. It’s nearing its 52 week low. It could be a good play

LEN is a major single and multi-unit homebuilder with earnings release after market close on FOMC day. Seems like a good chance to play the trend.

I’m not able to see a clear bullish or bearish direction with them. They’re financially healthy and have a huge backlog of home orders. But they mentioned during last ER that the fed and interest rates were starting to impact them at the end of last quarter. Their inventory is creeping up a bit.

This could be fun to watch on Wednesday to see if it has an exaggerated response to the trend that forms after FOMC minutes at 2 pm. Scalp only; would absolutely not hold through ER. But there could be more opportunities on Thursday morning.

I won’t be playing this personally because I’m getting screwed by meetings this week and won’t be able to react quickly. I hope folks can make money off of this.

Just posting for the record. Autozone was a beat.

Personal acquaintance of mine is manager at a COST. Store inventory is currently 50 percent higher than normally carry. In large part due to the fact that they have their own chartered container ships now. So little to no wait on big ticket items.

However says it’s as busy and booming as ever for said items. They are starting to discount some things as distribution centers are full.

I’m bullish as fuck on COST and likely always will be. Not touching it with a 10 foot pole til after ER. But wanted to drop this info. If it runs either way WMT and TGT will likely follow suit. And will play all 3.

COST has been a beat for last 4Q. However their estimated EPS is actually higher for this Q than it has been in any of those. Been waiting all week for this to post.

5 Likes

SFIX was a miss last night, but they are down to like $4 range so not really worth messing with.

General Mills was a beat this morning. Not sure if it’s worth playing today with Fed meeting but will watch to see. Looks like it’s pretty close to it’s ATH (78.54).

3 Likes

Yea I am saving my load for COST. Might play a bit today and watch IV on the contracts. May add a few and gamble a hold through all this but really add after we see their earnings come out.

2 Likes

GIS is strong out of open. Missed out on this one.

1 Like

Yes, I wasn’t expecting it to push so hard. Looks like it’s currently 81 resistance. This could be a multi-day runner even with new ATH’s so I’m going to keep an eye on it.

3 Likes

After hour earnings… KB Homes & Lennar were up to bat…

1 Like

Looks like LEN and KBH were beats. However mixed movement in AH. I’m not touching either of them. As housing is bad and the last nail JPow delivered was directly at housing so sentiment is probably muttled.

DRI in the morning could be one to watch. It was moving healthy out of the gate today. And then the broader sell off took hold. Still anticipating COST and ACN tomorrow. I’ll be overly hesitant on these unless it’s a strong beat and showing major divergence from the market with the downtrend we seem to be.

A beat likely needs to be a BIG beat.

2 Likes

DRI was a miss profits due. Due to increased cost to operate.

Has shown no signs of life so far in premarket

2 Likes

Morning earnings. Like jjcox said DRI was a miss, Accenture was a beat.

4 Likes

DRI started pushing back up. Also monthlies only.

LEN moving up consistently staying away from thst still with the focus on housing correction.

1 Like