10 Notable Earnings Reports to Watch

In this article, we will take a look at the 10 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.

5. Dave & Buster’s Entertainment, Inc. (NASDAQ: PLAY)

Number of Hedge Fund Holders: 28

Dave & Buster’s Entertainment, Inc. (NASDAQ: PLAY) has an interesting history. Back in the 1970s, James Buster Corley started a restaurant, and around the same time, Dave Corriveau was operating a place for entertainment and games. In 1982, Corley and Dave met each other and came up with the idea of opening first Dave Buster’s. Since then, the company has been offering high-quality food and beverage as well as sports and other entertainment under one roof.

The company recently came into the limelight after beating expectations for the second quarter. Dave & Buster’s Entertainment, Inc. (NASDAQ: PLAY) reported earnings of $1.07 per share for the three months ended August 1, compared to a loss of $1.24 per share in the year-ago quarter.

Revenue came in at $377.6 million, up 642.9 percent versus the comparable period of 2020. Analysts were expecting Dave & Buster’s Entertainment, Inc. (NASDAQ: PLAY) to report earnings of 58 cents per share on revenue of $358 million.

CEO Brian Jenkins praised the results, saying:

“Dave & Buster’s second quarter was clear evidence that the brand is back, posting record revenues and EBITDA with all 142 stores open as of the end of the quarter.”

4. Zscaler, Inc. (NASDAQ: ZS)

Number of Hedge Fund Holders: 38

Shares of Zscaler, Inc. (NASDAQ: ZS) slipped over 3 percent on Friday, 10 September 2021, despite announcing upbeat quarterly results and outlook. The company reported adjusted earnings of 14 cents per share for its fiscal fourth quarter ended July 31, up from 8 cents per share in the comparable period of 2020.

In addition, Zscaler, Inc. (NASDAQ: ZS) posted revenue of $197.1 million, up 57 percent on a year-over-year basis. The results easily exceeded the consensus forecast of 9 cents per share for earnings and $186.8 for revenue.

Speaking on the results, CEO Jay Chaudhry said:

“We delivered outstanding results for the fourth quarter, with a record number of large deals across diverse sectors driving 57% revenue growth and 70% billings growth year over year, finishing the fiscal year with strong business momentum. Enterprises of all sizes are adopting Zscaler’s Zero Trust Exchange to accelerate their secure digital transformation journey as they turn away from legacy castle-and-moat security. We continue to invest and innovate across all our product pillars and help our customers adopt a Zero Trust architecture designed to secure the cloud and mobile world.”

Zscaler, Inc. (NASDAQ: ZS) also issued the financial outlook for its fiscal year 2022. It expects adjusted earnings in the range of 52 cents – 56 cents per share, in line with the consensus forecast of 54 cents per share. Revenue for the full year is expected to come between $940 million and $950 million, better than analysts’ average estimate of $899.1 million.

3. The Kroger Co. (NYSE: KR)

Number of Hedge Fund Holders: 39

The Kroger Co. (NYSE: KR) traces its roots back to 1883 when Barney Kroger opened a grocery store in Cincinnati, Ohio. The company worked hard over the years and offered quality goods to customers. The consistency in quality and services provided by Kroger helped it to become a leading grocery retailer in the U.S.

The company recently caught investors’ attention after announcing better-than-expected results for the second quarter. The Kroger Co. (NYSE: KR) reported adjusted earnings of 80 cents per share for the three months ended August 14, up from 73 cents per share in the comparable period of 2020.

Analysts were expecting The Kroger Co. (NYSE: KR) to report adjusted earnings of 64 cents per share. Revenue came in at $31.68 billion, compared to $30.49 billion in the year-ago quarter, and higher than the consensus forecast of $30.64 billion. On the bright side, digital sales in the quarter jumped more than two folds.

Commenting on the results, CEO Rodney McMullen said:

“Our strategic focus on leading with fresh and accelerating with digital continues to build momentum across our business. Kroger’s seamless ecosystem is working. This was evident during the quarter as we saw customers seamlessly shift between channels, and we continued to see strong digital engagement.”

The Kroger Co. (NYSE: KR) also raised its profit outlook for the full year. It now expects adjusted earnings in the range of $3.25 – $3.35 per share, compared to its earlier guidance between $2.95 – $3.10 per share. The updated outlook is higher than the consensus forecast of $3.09 per share.

2. Academy Sports and Outdoors, Inc. (NASDAQ: ASO)

Number of Hedge Fund Holders: 45

Shares of Academy Sports and Outdoors, Inc. (NASDAQ: ASO) made a new 52-week high of $46.16 on Friday, 10 September 2021, after delivering impressive financial results for the second quarter. The sporting goods retailer reported adjusted earnings of $2.34 per share for the three months ended July 31, up from $1.81 per share in the comparable period of 2020.

Revenue for the quarter rose 11.5 percent on a year-over-year basis to $1.79 billion. Analysts, on average, were expecting Academy Sports and Outdoors, Inc. (NASDAQ: ASO) to report adjusted earnings of $1.42 per share on revenue of $1.66 billion.

CEO Ken Hicks expressed his satisfaction with the results. Hicks said in a statement:

“The Academy Sports + Outdoors team delivered the best quarterly financial results in the Company’s history as we surpassed the very strong store comparables from last year. We plan to build on this continued success by further sharpening our focus on the fundamentals of the business and investing in our strategic initiatives with the goal of adding new customers, gaining market share and driving sales and profit growth.”

Looking forward, Academy Sports and Outdoors, Inc. (NASDAQ: ASO) expects revenue in the range of $6.465 billion to $6.620 billion for its fiscal year 2021, compared to the consensus forecast of $6.20 billion.

1. RH (NYSE: RH)

Number of Hedge Fund Holders: 54

RH (NYSE: RH) is a well-known luxury home furnishing retailer, offering upscale home furnishings through its retail galleries, sourcebooks, and official website. The company recently delivered solid results for the second quarter.

The home-furnishings company reported adjusted earnings of $8.48 per share for the three months ended July 31, significantly higher than $4.90 per share in the comparable period of 2020. Analysts were expecting RH (NYSE: RH) to post adjusted earnings of $6.51 per share.

Revenue came in at $988.9 million, up 39 percent versus the year-ago quarter and above the consensus forecast of $973.4 million. RH (NYSE: RH) also raised its sales outlook for the full year. The company now expects its revenue to increase in the range of 31 – 33 percent versus its earlier growth forecast of 25 – 30 percent.

In a letter to shareholders, CEO Gary Friedman said:

“We are pleased to report another quarter of record results with adjusted net revenues increasing 39% to $989 million versus $710 million a year ago, and up 40% compared to the second quarter of 2019. RH continues to set a new standard for financial performance in the home furnishings industry and our results now reflect those of the luxury sector as adjusted operating margin reached 26.6% versus 21.8% last year. We generated $263 million of adjusted operating income in the quarter, up 70% compared to $155 million a year ago.”

You can also take a peek at 10 Highest Sharpe Ratio Dividend Stocks in the S&P 500 and Billionaire Jeffrey Talpins’ Top 10 Stocks Picks.

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Disclosure: None. 10 Notable Earnings Reports to Watch is originally published on Insider Monkey.