Earnings week ahead: Oracle, Costco, Adobe, FuelCell, Lennar and more

Despite a relatively sparse earnings calendar next week, there are still several notable companies scheduled to release their financial figures. The results have the potential to make a big impact on expectations, not just for specific companies but also for important industries like housing, consumer staples and enterprise software.

Notably, investors are eager for updates from Oracle (NYSE:ORCL), Adobe (NASDAQ:ADBE), Costco (NASDAQ:COST), FuelCell Energy (NASDAQ:FCEL) and Lennar (LEN), among others.

Below is a rundown of major quarterly updates anticipated in the week of December 11 to 15:

Monday, December 11

Oracle (ORCL)

Texas-based software giant Oracle (ORCL) will post its Q2 earnings results after the market closes on Monday. Analysts expects EPS and revenue to grow Y/Y, driven by its AI initiatives.

Seeking Alpha’s Quant Rating system presents some doubts about further near-term upside. The process for measuring quantitative measures gives the stock a Hold rating. Meanwhile, Wall Street analysts rate the stock as a Buy.

SA author Dair Sansyzbayev gives a Strong Buy rating to the stock despite potential profitability headwinds from the Cerner acquisition. He highlights that the company’s biggest bet is the cloud business, and its strong balance sheet allows for aggressive innovation and dividend growth. The stock is significantly undervalued, presenting a compelling investment opportunity with a perceived 36% upside potential.

  • Consensus EPS Estimates: $1.32
  • Consensus Revenue Estimates: $13.05B
  • Earnings Insight: Oracle has exceeded EPS and revenue estimates in 6 of the past 8 quarters.

Also reporting: Blue Bird (BLBD), Caey’s (CASY), Inotiv (NOTV), and more.

Tuesday, December 12

FuelCell Energy (FCEL)

FuelCell Energy (FCEL) is slated to report its Q4 earnings before the opening bell on Tuesday. Analysts expect Y/Y decline in revenue, while EPS is expected to grow.

The stock, which lost more than 50% of its value in 2023, gets a Hold rating from both Seeking Alpha’s Quant Rating system and Wall Street analysts.

“With FuelCell Energy, Inc. likely to lose money for many years on the horizon and likely also continuing to dilute shareholders via additional capital raises, there is no compelling reason to own the shares at the present time despite the huge drop in the stock over the past few years,” writes SA investing group leader The Insiders Forum.

  • Consensus EPS Estimates: -$0.09
  • Consensus Revenue Estimates: $25.66M
  • Earnings Insight: The company has exceeded revenue estimates in 6 of the past 8 quarters and EPS estimates in only 2 of those reports.

Also reporting: Johnsons Control (JCI), Mama’s Creation (MAMA), EMCORE (EMKR), and more.

Wednesday, December 13

Adobe (ADBE)

Adobe (ADBE) will update investors about its Q4 performance on Wednesday after the closing bell. Following upbeat Q3 results, the company guided Q4 revenue in the range of $4.975B to $5.025B and adjusted EPS between $4.10 and $4.15. Analysts anticipate EPS and revenue to grow Y/Y in the quarter.

“Adobe anticipates strong Q4 2023 revenue, solid performance and market capitalization. The company’s financial strength is evident in the Q3 2023 revenue increase and profitability. Technical analysis suggests Adobe’s stock price may reach new highs,” points out SA author Muhammad Umair.

  • Consensus EPS Estimates: $4.14
  • Consensus Revenue Estimates: $5.02B
  • Earnings Insight: Adobe has exceeded EPS in all of the past 8 straight quarters and revenue estimates in 6 of those reports.

Also reporting: ABM Industries (ABM), Cognyte Software (CGNT), Photronics (PLAB), REV Group (REVG), MIND Technology (MIND), Nordson (NDSN), Ocean Power Technologies (OPTT), Zedge (ZDGE), and more.

Thursday, December 14

Costco Wholesale Corporation (COST)

Costco (COST) will report its earnings results for Q1 after the market closes on Thursday. Analysts expect a Y/Y surge in top and bottom lines for the big box retailer, which recently disclosed a 5% increase in November revenues.

While Wall Street analysts express optimism with a Buy rating, Seeking Alpha’s Quant Rating system has issued a more conservative Hold rating.

Notably, SA author I.M Investing raises concerns about the stock’s valuation, stating, “The business is extremely attractive, but I can’t say the same thing for the valuation.”

  • Consensus EPS Estimates: $3.42
  • Consensus Revenue Estimates: $57.77B
  • Earnings Insight: Costco has exceeded revenue expectations 5 of the past 8 quarters, missing EPS estimates only twice in that span.

Also reporting: Jabil (JBL), Lennar (LEN), KNOT Offshore Partners (KNOP), Mesa Air Group (MESA), Quanex Building Products (NX), and more.

Friday, December 15

Darden Restaurants (NYSE:DRI)

Darden Restaurants (DRI), the parent company of The Capital Grille, Olive Garden, LongHorn Steakhouse, and more, is scheduled to post Q2 earnings on Friday before the opening bell. Analysts expect Y/Y growth in earnings.

Both Wall Street analysts and Seeking Alpha’s Quant Rating system maintain a Buy rating for the stock.

Geoffrey Seiler, a Seeking Alpha author maintaining a neutral stance on the stock, points out: “The main risk to DRI is a shift in consumer and dining out trends, potentially leading to multiple compressions and lower estimates, potentially putting the stock under $100.”

  • Consensus EPS Estimates: $1.73
  • Consensus Revenue Estimates: $2.74B
  • Earnings Insight: Darden has beaten EPS and revenue estimates in 6 of the past 8 quarters.

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