Imilian
Next week marks the beginning of earnings season, with several big companies across the financial, consumer and technology sectors set to release their quarterly results. Investors will be keenly watching reports from PepsiCo (NASDAQ:PEP), Delta Air Lines (NYSE:DAL), Ericsson (NASDAQ:ERIC), JPMorgan (NYSE:JPM), Wells Fargo (NYSE:WFC) and Citigroup (NYSE:C).
Below is a rundown of major quarterly updates anticipated in the week of July 8 to 12:
Monday, July 8
The week will start with a light schedule of earnings reports. The Greenbrier Companies (GBX) is set to announce its earnings before the market opens, while Lexaria Bioscience (LEXX) will release its report after the market closes.
Tuesday, July 9
Saratoga Investment (SAR)
Saratoga Investment (SAR) is set to report its quarterly results on Tuesday, after the closing bell. Seeking Alpha’s Quant Rating system maintains a Hold rating on the stock, while Wall Street analysts are more upbeat with a consensus Buy recommendation.
Roberts Berzins, a Seeking Alpha author, expressed caution regarding Saratoga Investment (SAR) by stating, “After the release of Q4 2024 earnings, there is still an insufficient base of positive data points that would justify going long SAR. Currently, SAR is in a dangerous situation, where it holds the highest leverage profile in the BDC sector and, meanwhile, is experiencing difficulties keeping the existing adjusted net investment income results stable.”
Berzins added: “All of this has taken place despite SAR’s record portfolio quality levels, where there have not yet been any bumps from the non-accrual side. It is clear that sooner or later, SAR will be forced to recognize write-downs, and in that case, the effects would be very material given the presence of such enormous leverage.”
- Consensus EPS Estimates: $0.96
- Consensus Revenue Estimates: $36.47M
- Earnings Insight: The company has beaten EPS and revenue expectations in 7 of the past 8 quarters.
Also reporting: Helen of Troy Limited (HELE), SMART Global Holdings (SGH), Kura Sushi USA (KRUS), Byrna Technologies (BYRN) and more.
Wednesday, July 10
AZZ (AZZ)
Industrial solution provider AZZ (AZZ) is set to report its results on Wednesday after the market closes, with analysts expecting Y/Y growth in both EPS and revenue. Shares of the Texas-based company, which have surged 77% over the past year, have received a Strong Buy recommendation from sell-side analysts. However, just days before the earnings announcement, Seeking Alpha’s Quant Rating System adjusted its view and now suggests a Hold.
The Value Investor, a Seeking Alpha Investing Group Leader, notes, “AZZ has improved its balance sheet and capital structure following a well-timed equity offering, making it a more standard investment opportunity with manageable leverage.”
- Consensus EPS Estimates: $1.29
- Consensus Revenue Estimates: $401.96M
- Earnings Insight: The company has exceeded EPS and revenue expectations in 5 of the past 8 quarters.
Also reporting: WD-40 Company (NASDAQ:WDFC), Manchester United (MANU), E2open Parent Holdings (ETWO), Pure Cycle (PCYO), Bassett Furniture Industries (BSET), VOXX International (VOXX), Universal Security Instruments (UUU) and more.
Thursday, July 11
PepsiCo (PEP)
PepsiCo (PEP) is set to release its Q2 earnings before the market opens on Thursday. Analysts anticipate Y/Y growth in both revenue and earnings following the company’s strong Q1 performance, particularly in its international business. For FY2024, PepsiCo projects at least 4% organic revenue growth and at least 8% core constant currency EPS growth.
A week before the earnings report, Seeking Alpha’s Quant Rating system downgraded PepsiCo from Strong Buy to Buy, aligning with Wall Street analysts’ recommendations.
Opinions among Seeking Alpha authors are divided on PEP. Bearish author Empyrean Research highlights that PepsiCo’s Q1 2024 net sales slightly exceeded consensus estimates but noted volume declines in FLNA (Frito-Lay North America) and PBNA (Pepsi Beverages North America). The analyst also points out strong growth potential in international markets, particularly India, but warns of potential pressure on operating margins.
On the bullish side, SA author Dividend Power acknowledges near-term challenges related to volume growth, inflation, and stressed customers but emphasizes PepsiCo’s long-term competitive advantages in distribution, iconic brands, and scale. The analyst argues that the stock is undervalued, with a dividend yield of approximately 3.25% and a fair value estimate of $187.91, making it a long-term buy for dividend growth portfolios.
- Consensus EPS Estimates: $2.16
- Consensus Revenue Estimates: $22.65B
- Earnings Insight: Pepsi has beaten EPS estimates in 8 consecutive quarters, beating revenue estimates in 7 of those reports.
Also reporting: Delta Air Lines (DAL), Conagra Brands (NYSE:CAG), Vista Energy, S.A.B. de C.V. (NYSE:VIST), PriceSmart (NASDAQ:PSMT), Nurix Therapeutics (NASDAQ:NRIX), Methode Electronics (NYSE:MEI), Bank7 (NASDAQ:BSVN), Northern Technologies International Corporation (NASDAQ:NTIC), Information Services Group (NASDAQ:III), reAlpha Tech (NASDAQ:AIRE), Cryo-Cell International (NYSE:CCEL), Educational Development Corporation (NASDAQ:EDUC), SemiLEDs Corporation (NASDAQ:LEDS) and more.
Friday, July 12
On Friday, a large number of important financial players will report their quarterly results. Citigroup (C), Wells Fargo (WFC), J.P. Morgan (JPM) and the Bank of New York Mellon Corporation (NYSE:BK) are all slated to release their financial figures.
Most recently, despite a challenging scenario, all 31 banks successfully passed their annual stress tests conducted by the Federal Reserve. This outcome underscores the financial institutions’ strong capital positions and ability to withstand potential losses, ensuring stability even in adverse economic conditions.
Also reporting: Fastenal Company (NASDAQ:FAST), Telefonaktiebolaget LM Ericsson (ERIC), Hingham Institution for Savings (NASDAQ:HIFS), Evergreen Corporation (NASDAQ:EVGR), FingerMotion (NASDAQ:FNGR), Goldenstone Acquisition Limited (NASDAQ:GDST), Aura FAT Projects Acquisition (NASDAQ:AFAR), Novo Integrated Sciences (NASDAQ:NVOS) and more.
